Kingfisher Boosts Profit Forecast Amid Screwfix Surge
Kingfisher, owner of B&Q, raised its annual profit guidance thanks to a 7.1% revenue rise at Screwfix, even though B&Q’s sales slipped 1.8% in Q2. The group posted a 9.9% jump in underlying pre‑tax profit, aided by a one‑off UK business rates refund.
By Felo News Desk · Published
Kingfisher PLC, the parent of Britain’s largest DIY retailer B&Q, has announced a higher full‑year earnings forecast, buoyed by a strong performance from its home‑grown retailer Screwfix. The decision comes after the company reported a 7.1% rise in Screwfix revenue for the second quarter, which helped lift the combined UK and Irish same‑store sales by 1.6% for the quarter and 0.4% for the half‑year.
What Happened?
During the period ending 31 July, Kingfisher’s underlying pre‑tax profit climbed 9.9% to £404 million, largely thanks to a one‑off £14 million UK business rates refund. The company has therefore upgraded its guidance for the full year to a range of £595 million to £635 million, up from the previously forecast £565 million to £625 million.
At the same time, B&Q’s comparable sales across the UK and Ireland fell 1.8% in the second quarter, driven by an 8.1% drop in higher‑value items, especially bathroom products. The decline was less severe than the 4.1% fall recorded in the first quarter, as warmer weather boosted demand for seasonal goods.
Why the Contrast Matters
While B&Q’s sales slipped, Screwfix’s revenue jump offset the downturn, showing that Kingfisher’s diversified portfolio can cushion the impact of consumer caution. The DIY market in Britain has seen shoppers delay major purchases, but the steady demand for smaller, more affordable items keeps retailers like Screwfix profitable.
Background on Kingfisher and Its Brands
Kingfisher operates a portfolio of home improvement retailers, including the well‑known B&Q chain, the discount store Wickes, and the European brands Brico Dépôt and Castorama. Screwfix, founded in 1989, has grown into a specialist supplier of tools, plumbing and electrical goods, operating over 1,000 stores across the UK and Ireland. The company’s business model focuses on a high‑volume, low‑margin strategy that appeals to both professional tradespeople and DIY enthusiasts.
Financial Highlights and Guidance
Key figures for the six‑month period to 31 July include:
- Underlying pre‑tax profit: £404 million (up 9.9%)
- Statutory pre‑tax profit: £400 million (up 18.4%)
- Screwfix revenue: +7.1% YoY
- B&Q comparable sales: -1.8% YoY
- Full‑year underlying pre‑tax profit guidance: £595 million to £635 million
Chief Executive Thierry Garnier, who announced his departure in May to take a role at Ahold Delhaize, remains in place to oversee the transition. He highlighted that “our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”
What’s Next for Kingfisher?
Kingfisher is now focused on executing its growth strategy across both B&Q and Screwfix. The company plans to invest in digital capabilities, expand its product range, and continue to streamline operations to improve margins. With the guidance upgrade, investors expect a more robust bottom line for the 2024‑25 financial year.
As the UK economy continues to face uncertainty, Kingfisher’s diversified brand mix positions it well to weather shifts in consumer spending. The company’s next steps will involve further strengthening its online presence and exploring new market opportunities within Europe.
Key facts
- Screwfix revenue up 7.1% in Q2, boosting Kingfisher’s profit forecast
- B&Q sales fell 1.8% YoY, driven by lower demand for high‑value items
- Underlying pre‑tax profit rose 9.9% to £404 million, aided by a £14 million refund
- Full‑year profit guidance raised to £595 million–£635 million
- CEO Thierry Garnier remains to oversee transition to new leadership
- Kingfisher’s diversified portfolio helps cushion market volatility
Why it matters
Kingfisher’s updated profit forecast reflects the resilience of its diversified retail model, offering investors confidence in the group’s ability to navigate a cautious consumer market.
Frequently asked questions
What is the main driver behind Kingfisher’s profit upgrade?
The 7.1% revenue increase at Screwfix and a one‑off business rates refund helped lift the group’s underlying pre‑tax profit, leading to a higher full‑year guidance.
How did B&Q’s sales perform in the second quarter?
B&Q’s comparable sales fell 1.8% YoY, mainly due to an 8.1% drop in higher‑value items such as bathroom products.
What does the new profit guidance mean for shareholders?
The upgrade to £595 million–£635 million suggests a stronger earnings outlook, potentially supporting higher dividends and share price appreciation.
Sources
- [1] independent.co.uk — originally reported as “Screwfix sales surge help Kingfisher raise profit forecast”
