The home improvement retailer, Kingfisher plc, announced on Monday that its pre-tax profit for the fiscal year that ended on January 31 has decreased by 22.3 percent, rounding to 475 million pounds, from 611 million pounds last year.
The post-tax profit is down to 345 million pounds, which is a 26.7 percent decrease from the previous year. The basic earnings per share also fell by 23.5 percent, going from last year's 23.8 pence to 18.2 pence this year.
The adjusted pre-tax profit has been reported at 568 million pounds compared to the previous year's 758 million pounds. This year's adjusted earnings per share were 21.9 pence, a decrease from the 29.7 pence of the preceding year.
As for sales for the year, they sagged by 0.6 percent to 12.98 billion pounds, down from 13.06 billion pounds. Sales dropped by 1.8 percent based on consistent exchange rates, and 3.1 percent on the like-for-like basis.
Kingfisher also proposed a total dividend for the year of 12.40 pence per share, maintaining the same amount as last year.
Regarding current trades, Kingfisher announced a slight decrease in its first-quarter LFL sales, down by 2.3 percent. However, there has been an improvement in sales trend in regions such as the UK & Ireland, France, and Poland, in comparison to the fourth quarter.
For the upcoming fiscal year, the company predicts an adjusted profit before tax ranging from 490 million to 550 million pounds. The corporation also foresees cost reductions and productivity gains of around 120 million pounds to counterbalance higher pay rates and technology investments.
Though the company remains cautious about the overall market outlook for 2024 due to the lag between housing demand and home improvement demand, it is confident that the repairs, maintenance, and renovation activity on existing homes will continue to maintain a steady demand.
Additionally, the company reemphasized its medium-term financial priorities, focusing on growth and cash generation. They believe that the company is well-positioned for substantial growth in 2025 and beyond.
