Published on 26 - March - 2009
Kingfisher’s ‘solid performance’, despite dip in UK salesHome improvement group reports full year sales up 11% but UK sales see a 2.6% drop to £4.3bn.
Kingfisher revealed a sales increase of 11% in its preliminary results for the year ended January 31. Adjusted pre tax profit was also up 3% for the group, reaching £368m.
However, UK sales for the group, which owns B&Q and Screwfix, were down 2.6% to £4.3bn. The UK arm did achieve a retail profit of £129m, benefiting, said the company, 'from early and firm margin and cost action'.
Commenting on the results, group chief executive Ian Cheshire said: "I am pleased with our solid performance in what has been a particularly challenging retail environment. We have grown share in all of our major markets, delivered our profits through strong margin and cost control and significantly reduced our net debt."
The group's operations in France saw a 3% rise in sales to £3.9bn, with a retail profit of £283m, while sales in other international markets, including Poland, were up 7% to £1.8bn.
Kingfisher also announced a 'turnaround action plan' for B&Q China, which delivered a drop in sales of 24% to £431m and a retail loss of £52m. The company plans to rationalise its store portfolio from 63 to 41, with all remaining stores revamped.
Mr Cheshire added: "The performance in a very difficult Chinese housing market has been worse than anticipated at the start of the year, but we still believe that there is a long-term potential in China and have initiated a clear and thorough set of actions to return this business to profitability."
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