Kingfisher PLC Q3 Trading Update (7583P)

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RNS Number : 7583P

Kingfisher PLC

22 November 2016

Tuesday 22 November 2016

Q3 to 31 October 2016

Kingfisher reports sales of GBP3.0 billion, +1.8% LFL*

 
 
   Financial overview and highlights:                             Sales     % Total              % Total         % LFL Change 
                              2016/17      Change               Change    Constant currency 
                                 GBPm    Reported    Constant currency 
    UK & Ireland (1)            1,243       +2.8%                +2.5%                +5.8% 
    - B&Q UK & Ireland            900      (3.3)%               (3.6)%                +3.5% 
    - Screwfix                    343      +23.1%               +23.1%               +12.7% 
    France                      1,148      +16.0%               (2.6)%               (3.6)% 
    - Castorama                   619      +14.8%               (3.7)%               (3.8)% 
    - Brico 
     Dépôt              529      +17.5%               (1.2)%               (3.3)% 
    Other International           564      +24.8%                +6.8%                +4.7% 
    - Poland                      338      +26.7%                +9.5%                +6.7% 
    - Russia                      100      +18.9%               (0.2)%                +1.0% 
    - Spain                        80      +19.4%               (0.2)%              +(1.3)% 
    - New Country                  46         n/a                  n/a                  n/a 
    Development* 
    Total Group                 2,955      +11.5%                +1.3%                +1.8% 
   -----------------------  ---------  ----------  -------------------  ------------------- 
 
 
   (1) 2016/17 total and LFL sales cover 3 months 
   to 31 October (2015/16: 13 weeks to 31 October 
   for total sales, 3 months to 31 October for LFL 
   sales) 
   (2) 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 2016/17 Half Year Results 
   Section 5 
 
   -- Solid overall Q3 performance with LFL sales 
   up +1.8% driven by the UK & Poland 
   -- GBP182m (53m shares) returned year to date via 
   share buyback of the previously announced c.GBP600m 
   capital return (2) 
----------------------------------------------------------------------------------------------------------------------------- 
 

Véronique Laury, Chief Executive Officer, said:

"Q3 trading conditions have followed a similar trend to the first half. We have delivered another solid sales performance overall, trading in line with expectations. Sales have been driven by Poland and the UK, especially Screwfix, offset by softer sales in France.

"We continue to make good progress on our strategic milestones in the first year of our five year ONE Kingfisher transformation, and remain on track. In addition, we are gearing up for next year when the level of transformation activity will significantly increase. We remain confident in our ability to deliver our ambitious plan, based on always putting customer needs first, supported by the expertise and energy of our colleagues."

 
 
         Q3 trading highlights by division (in constant 
         currencies): 
 
         UK & IRELAND 
          *    Total sales +2.5%. LFL +5.8% reflecting continued 
               strong Screwfix performance and solid B&Q performance 
 
 
         o B&Q UK & Ireland sales -3.6% reflecting store 
         closure programme which is now nearly complete 
         (7 in Q3; 59 to date of 65 planned). LFL +3.5% 
         including c.2% benefit from sales transference 
         associated with store closures. LFL of seasonal 
         +5.3%. LFL of non-seasonal, including showroom 
         +3.1% 
         o Screwfix sales up +23.1% (LFL +12.7%) driven 
         by its leading digital capability, new and extended 
         ranges and 11 new outlets 
 
         FRANCE 
          *    Total sales -2.6% (LFL -3.6%). Sales for the home 
               improvement market (Banque de France data*) -1.9% in 
               Q3 
 
 
         o Castorama sales -3.7% (LFL -3.8%) reflecting 
         less promotional activity. LFL of seasonal +5.9%. 
         LFL of non-seasonal, including showroom -4.9% 
         o Brico Dépôt sales -1.2% (LFL -3.3%) 
 
         OTHER INTERNATIONAL 
         o Total sales in Poland +9.5% (LFL +6.7%) benefiting 
         from a supportive market and new ranges. LFL of 
         seasonal +7.8%. LFL of non-seasonal, including 
         showroom +6.6% 
-------------------------------------------------------------------- 
 
 
 
   Enquiries: 
   Investor Relations [phone] 
   Media Relations [phone] 
   Teneo Blue Rubicon [phone] 
------------------------------------------ 
 

This announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App. Data tables for Q3 2016/17 are available for download in excel format at http://www.kingfisher.com/index.asp?pageid=59

Our next announcement will be the 2016/17 Final results on 22 March 2017.

We can be followed on Twitter @kingfisherplc with the Q3 results tag #KGFQ3. 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 31 October 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.

This information is provided by RNS

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November 22, 2016 02:00 ET (07:00 GMT)