Kingfisher reports Q1 total sales down 3.6% and Q1 retail profit down 8.6% impacted by poor weather across Europe and adverse foreign currency translation
Group Financial Summary (13 weeks ended 28 April 2012)
|
|
Sales |
% Total |
% Total |
% LFL |
Retail Profit |
% Total |
% Total |
|
|
2012/13 £m |
Change (Reported) |
Change (Constant currency) |
Change (Constant currency) |
2012/13 £m |
Change (Reported) |
Change (Constant currency) |
|
France |
1,089 |
(1.8)% |
2.2% |
0.7% |
78 |
0.1% |
4.2% |
|
UK & Ireland |
1,105 |
(7.0)% |
(6.9)% |
(10.4)% |
75 |
(9.8)% |
(9.8)% |
|
Other International |
438 |
1.0% |
5.8% |
(2.0)% |
7 |
(48.1)% |
(36.9)% |
|
Total Group |
2,632 |
(3.6)% |
(1.3)% |
(4.8)% |
160 |
(8.6)% |
(5.5)% |
Note: Joint Venture (Koçtaş JV) and Associate (Hornbach) sales are not consolidated. Retail profit is operating profit stated before central costs, exceptional items, amortisation of acquisition intangibles and the Group's share of interest and tax of JVs and Associates.
Highlights in constant currencies:
· Sales and profit impacted by record adverse weather in the UK and across continental Europe, compounded by the comparison with a favourable Q1 this time last year
· Seasonal sales across the Group were down 22% impacting profit by around £29 million. However, on-going gross margin and cost initiatives helped limit the Q1 overall profit decline
· Net cash was £165 million (30 April2011: net cash of £283 million)
Ian Cheshire, Group Chief Executive, said:
"We anticipated the first quarter would be challenging, compared with last year's strong growth which was boosted by favourable spring weather and public holidays. But an extremely wet April this year in the UK and France compounded the difficulty, adversely impacting sales of outdoor and seasonal categories.
"Given this unfavourable backdrop, we focused hard on our margin and cost initiatives and were able to significantly limit the profit impact. With the first quarter typically one of the least significant of the year and with the key summer season still ahead of us, we remain confident that we are well prepared to capitalise on any improvement in conditions and deliver a solid full year result.
"We are also making progress with our new programme of self-help initiatives, 'Creating the Leader', aimed at helping our customers have better, more sustainable homes and building a more valuable business for our shareholders."
