Kingfisher PLC Q1 Trading Update (0300Z)

TIDMKGF

RNS Number : 0300Z

Kingfisher PLC

15 May 2019

Wednesday 15 May 2019: Q1 trading update to 30 April 2019

Kingfisher reports sales of GBP2.8 billion up 1.7% in constant currency, LFL(1) up 0.8%

Financial highlights

 
                                 Sales    % Total             % Total     % LFL(1) Change 
                                2019/20     Change              Change 
   -------------------------  ---------  ---------  ------------------  ------------------ 
                                   GBPm   Reported   Constant currency   Constant currency 
    UK & Ireland                  1,284      +5.0%               +5.0%               +3.4% 
    - B&Q UK & Ireland              851      +2.8%               +2.8%               +2.8% 
    - Screwfix                      433      +9.6%               +9.6%               +4.5% 
    France                        1,020     (5.1)%              (3.4)%              (3.7)% 
    - Castorama                     532     (4.1)%              (2.4)%              (2.4)% 
    - Brico Dépôt         488     (6.2)%              (4.5)%              (5.1)% 
    Other International             531      +0.7%               +4.6%               +4.2% 
    - Poland                        347      +2.9%               +7.4%               +6.2% 
    - Romania                        39      +6.0%              +10.1%              +24.6% 
    - Iberia (2)                     80     (2.1)%              (0.4)%              (0.4)% 
    - Russia                         62     (8.9)%              (5.1)%              (7.0)% 
    - Screwfix Germany                3    (16.3)%             (14.8)%               +9.3% 
    Total Group                   2,835      +0.3%               +1.7%               +0.8% 
   -------------------------  ---------  ---------  ------------------  ------------------ 
 

Véronique Laury, Chief Executive Officer, said:

"The Group delivered positive sales growth in the first quarter, with sales of unified and unique ranges continuing to grow ahead of non-unified ranges. Screwfix, Poland and Romania delivered good sales growth while our performance in France was mixed within the quarter.

"This year we are focused on completing the building of our 'engine' and making our innovation more visible to customers. Our new outdoor range was rolled out to all markets in the quarter alongside a globally coordinated marketing campaign. We are also excited to be launching several new ranges this year which are unique to us and will further differentiate us from our competitors, including surfaces & décor and bathrooms across the Group, and kitchens in B&Q. In addition, we are piloting a new convenience store concept which we look forward to demonstrating at today's Kingfisher Innovation Day.

"At this early stage of the year our expectations for the full year are unchanged, and we remain confident in our ability to deliver significant financial benefits over time."

 
 
        Q1 trading highlights by division (in constant currencies) 
 
        UK & IRELAND 
        Total sales +5.0% (LFL +3.4%) 
         *    B&Q UK & Ireland sales +2.8%. LFL +2.8% reflecting 
              stronger weather-related performance benefiting LFL 
              by +c. 6%, partly offset as expected by c. 2% impact 
              from discontinuation of showroom installation 
              services 
 
 
         *    Screwfix sales up 9.6%. LFL +4.5% with 4 new outlets 
              opened in the UK during Q1 
 
 
 
        FRANCE 
        Total sales -3.4% (LFL -3.7%) 
         *    Castorama sales -2.4%. LFL -2.4% reflecting a 
              positive start to the year, offset by 
              transformation-related activity 
 
 
         *    Brico Dépôt sales -4.5%. LFL -5.1% largely 
              reflecting the proactive reduction of low margin 
              special promotional activity 
 
 
 
        OTHER INTERNATIONAL 
         *    Total sales in Poland +7.4%. LFL +6.2% reflecting the 
              continued good performance of unified & unique ranges, 
              and despite the loss of one further Sunday of trading 
              per month 
 
 
         *    Total sales in Romania +10.1%. LFL +24.6% reflecting 
              strong performance of unified & unique ranges. The 
              integration of Praktiker is progressing well with all 
              stores now rebranded as Brico Dépôt 
 
 
 Kingfisher Innovation Day 
 
  Kingfisher is today hosting an Innovation Day for investors and 
  analysts in London, UK. At the event we will demonstrate several 
  innovative new products and services to help the home improver 
  and the professional simplify and realise their home improvement 
  missions and projects. We will also demonstrate a new convenience 
  format, as well as our vision of helping customers realise their 
  entire home improvement project in one place, offering both inspiration 
  and advice. We will also discuss the continuous improvement of 
  our best-in-class Screwfix proposition. No new material financial 
  information will be disclosed during this event. An Innovation 
  Day for media will also be held on Thursday 16 May. 
 

Footnotes

(1) Like-for-like sales growth representing the constant currency, year on year sales growth for stores that have been open for more than a year

(2) Brico Depôt Spain & Portugal

Contacts

 
                                         Tel:                              Email: 
   Investor Relations    [phone]    [e-mail] 
 Media Relations         [phone]            [e-mail] 
 Teneo                   [phone]                    [e-mail] 
 

This announcement can be downloaded from www.kingfisher.com. Data tables for Q1 2019/20 are available for download in excel format at www.kingfisher.com/index.asp?pageid=59

Our next announcement will be the Half Year results on 18 September 2019.

We can be followed on Twitter @kingfisherplc with the Q1 results tag #KGFQ1. Kingfisher American Depository Receipts are traded in the US on the OTCQX platform:(OTCQX: KGFHY) 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 30 April 2019. 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 global or regional trade conditions, 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.

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May 15, 2019 02:00 ET (06:00 GMT)