Kingfisher PLC, a leading home improvement retailer, reported strong half-year results for the six months ended July 31, 2025, with upgraded full-year profit and free cash flow guidance. Heres a summary of the key points
**Financial Performance**
**Sales Growth** Total sales increased by 0.9% to £6,811 million, with underlying like-for-like (LFL) sales growth of 1.9%, driven by volume and transaction growth.
**Profitability**
Gross profit margin improved by 100 basis points to 37.7%.
Operating profit rose by 2.1% to £383 million.
Statutory pre-tax profit (PBT) increased by 4.1% to £338 million.
Adjusted pre-tax profit (PBT) grew by 10.2% to £368 million.
**Cash Flow** Free cash flow increased by 13.5% to £478 million, driven by earnings growth and inventory management.
**Strategic Highlights**
**Trade Sales** Trade sales grew by 11.9% to £1.9 billion, representing 28.0% of Group sales, driven by initiatives like loyalty programs, enhanced product ranges, and dedicated trade colleagues.
**E-commerce** E-commerce sales increased by 11.1% to £1.4 billion, with penetration reaching 20.0%. Marketplace gross merchandise value (GMV) grew by 62% to £262 million.
**Market Share Gains** Kingfisher gained market share in the UK, France, and Spain, with Poland performing in line with the market.
**Strategic Initiatives** The company made progress in its strategic priorities, including trade, e-commerce, and data-led customer experience.
**Regional Performance**
**UK & Ireland** Strong performance across B&Q and Screwfix, with LFL sales growth of 4.4% and 3.0%, respectively.
**France** Sequential improvement in sales from Q1 to Q2, with market share gains and progress in the restructuring and modernization of Castorama stores.
**Poland** Sales declined by 0.5% due to a challenging market backdrop, but underlying core category sales returned to growth in Q2.
**Guidance and Outlook**
**Upgraded Guidance** Kingfisher upgraded its full-year adjusted PBT guidance to the upper end of the range (£480-£540 million) and raised its free cash flow guidance to £480-£520 million.
**Market Outlook** The company expects its markets to remain consistent with previous guidance, while acknowledging mixed consumer sentiment and political uncertainty.
**Management Commentary**
Thierry Garnier, CEO, highlighted the strong first-half performance, driven by underlying LFL sales growth, strategic initiatives, and cost discipline. He expressed confidence in the companys ability to deliver on its strategic priorities and upgraded guidance, despite market challenges.
**Key Metrics**
**Retail Profit Margin** Improved by 40 basis points to 6.6%.
**Adjusted EPS** Grew by 16.5% to 15.3p.
**Net Debt** Reduced to £1,726 million, with a net debt to adjusted EBITDA ratio of 1.3 times.
In summary, Kingfisher PLC delivered a strong half-year performance, driven by strategic initiatives, cost discipline, and market share gains. The company upgraded its full-year guidance, reflecting confidence in its ability to navigate market challenges and deliver on its strategic priorities.
| Metric | 2025/26 | 2024/25 | Change |
|---|---|---|---|
| Sales (£m) | 6,811 | 6,756 | +0.8% |
| Gross Profit (£m) | 2,569 | 2,480 | +3.6% |
| Operating Profit (£m) | 383 | 374 | +2.1% |
| Statutory Pre-Tax Profit (£m) | 338 | 324 | +4.1% |
| Net Cash Flows from Operating Activities (£m) | 928 | 810 | +14.6% |
| Free Cash Flow (£m) | 478 | 421 | +13.5% |
| Net Debt (£m) | (1,726) | (1,952) | Improved |
| Adjusted Pre-Tax Profit (£m) | 368 | 334 | +10.2% |
| Adjusted Basic EPS (p) | 15.3 | 13.2 | +16.5% |