Q1 Trading Update

RNS Number : 0637Z

Kingfisher PLC

24 May 2016

 



Tuesday 24 May 2016

Q1 to 30 April 2016

Kingfisher reports sales of £2.7 billion, +3.6% LFL*

Trading in line with expectations

Financial overview and highlights: Sales 2016/17 £m % Total Change Reported % Total Change Constant currency % LFL Change Constant currency France 1,045 +9.7% +2.2% +0.2% - Castorama 559 +7.6% +0.2% (0.9)% - Brico Dépôt 486 +12.2% +4.5% +1.5% UK & Ireland (1)    1,252 +1.3% +1.2% +6.2% - B&Q UK & Ireland 951 (4.2)% (4.3)% +3.6% - Screwfix 301 +23.5% +23.5% +16.2% Other International 426 +6.0% +5.8% +4.7% - Poland 267 +14.6% +12.6% +10.8% - Russia 63 (17.5)% (5.7)% (4.5)% - Spain 72 +6.7% (0.6)% (3.2)% - New Country Development* 24 n/a n/a n/a Total Group (2) 2,723 +5.1% +2.3% +3.6% (1) FY 2016/17 total and LFL sales cover 3 months to 30 April (FY 2015/16 cover 13 weeks to 2 May for total sales; 3 months to 30 April for LFL) (2) Prior year excludes China due to disposal of controlling 70% stake in April 2015 (3) Through to end of FY 2018/19 (over and above the annual ordinary dividend) *Throughout this release '*' indicates first instance of a term defined in the 2015/16 Annual Report & Accounts (p146) ·       Solid Q1 performance with LFL sales up +3.6% driven by the UK & Poland ·       £78m (23m shares) returned to date via share buyback of the previously announced           c. £600m capital return (3)

ONE Kingfisher (4) progress on FY 2016/17 operational milestones: Unified & Unique Offer: ·    Set up of new Offer and Supply Chain Organisation well underway with new unified global functions and roles starting from early June Digital: ·    Unified IT platform now in all B&Q stores (ahead of plan) with back office and supply chain underway Operational efficiency: ·    Closure of c.15% surplus space at B&Q remains on track o 10 further B&Q stores closed (40 to date of the 65 planned) o Of the 65 stores: 41 lease exits secured; outsourced remaining lease exits to a third party via a lease liability transaction (4)  5 year transformation to deliver £500m sustainable annual profit uplift by the end of Year 5 over and above 'business as usual'. For further information: http://www.kingfisher.com/index.asp?pageid=3

Véronique Laury, Kingfisher Chief Executive Officer, said: 

"We have made a solid start to the year, trading in line with expectations.

"In addition, I am pleased with the early progress we are making on our operational milestones for this year, the first year of our ambitious five year plan. We continue to feel confident in our ability to deliver our plan, based on putting customer needs first, supported by the expertise and enthusiasm of our colleagues."

Q1 trading highlights by division (in constant currencies): FRANCE ·    Total sales +2.2% (LFL +0.2%). Sales for the home improvement market (Banque de France data*) +1.7% in Q1; new housing starts +3.0%(5); planning permits +7.5%(5)  o Castorama sales +0.2% (LFL -0.9%) reflecting less promotional activity. LFL of seasonal -9.0%. LFL of non-seasonal, including showroom +0.6% o Brico Dépôt sales +4.5% (LFL +1.5%) (5)  For the 3 months to March 2016 UK & IRELAND ·    Total sales +1.2%. LFL +6.2% benefiting from a supportive backdrop and continued strong Screwfix performance o B&Q UK & Ireland sales -4.3% reflecting store closures. LFL +3.6% including 1.9% benefit from sales transference associated with store closures. LFL of seasonal -14.3%. LFL of non-seasonal, including showroom +7.3% o Screwfix sales up +23.5% (LFL +16.2%) driven by its leading omnichannel capability, new and extended ranges and 10 new outlets OTHER INTERNATIONAL o Sales in Poland +12.6% (LFL +10.8%) benefiting from a currently supportive market and new ranges. LFL of seasonal +10.4%. LFL of non-seasonal, including showroom +10.9% o Sales in Russia -5.7% (LFL -4.5%) reflecting strong comparatives (Q1 2015/16: +31.3% LFL)

Enquiries: Investor Relations                                                                             [phone] Media Relations                                                                               [phone] Brunswick                                                                                          [phone]

This announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App. Data tables for Q1 2016/17 are available for download in excel format at http://www.kingfisher.com/index.asp?pageid=59

Our next announcement will be the Q2 sales update on 18 August 2016.

We can be followed on Twitter @kingfisherplc with the Q1 results tag #KGFQ1. Kingfisher American Depository Receipts are traded in the US on the OTCQX platform:(OTCQX: KGFHY) http://www.otcmarkets.com/stock/KGFHY/quote 

Forward-looking statements:

You are not to construe the content of this announcement as investment, legal or tax advice and you should make your own evaluation of the Company and the market.  If you are in any doubt about the contents of this announcement or the action you should take, you should consult a person authorised under the Financial Services and Markets Act 2000 (as amended) (or if you are a person outside the UK, otherwise duly qualified in your jurisdiction).

This announcement has been prepared in relation to the financial results for the Quarter ended 30 April 2016. The financial information referenced in this announcement is not audited and does not contain sufficient detail to allow a full understanding of the results of the group.  Nothing in this announcement should be construed as either an offer or invitation to sell or any offering of securities or any invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the group or an invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000 (as amended).

Certain information contained in this announcement may constitute "forward-looking statements" (including within the meaning of the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995), which can be identified by the use of terms such as "may", "will", "would", "could", "should", "expect", "anticipate", "project", "estimate", "intend", "continue," "target", "plan", "goal", "aim" or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, changes in tax rates, liquidity, prospects, growth and strategies.  By their nature, forward-looking statements involve risks, assumptions and uncertainties that could cause actual events or results or actual performance of the Company to differ materially from those reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of and no reliance should be placed on such forward-looking statements.

The Company does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in the Company's expectations.

 

END

 

 

TSTUOUBRNOAVUAR