Kingfisher (KGF) H1 24/25 earnings summary

Executive summary

• H1 trading was in line with expectations, with market share gains in the UK & Ireland and Poland, and resilience in core categories despite a soft consumer environment in France.

• Strong execution on e-commerce and trade growth, with rapid progress in restructuring underperforming Castorama stores in France.

• Strategic focus on cost management, inventory reduction, and digital transformation supported profitability and cash flow.

• Full-year adjusted PBT guidance tightened and free cash flow outlook upgraded, with accelerated share buybacks.

• The consumer environment remained soft in France, but core categories held up well and cost/inventory management was strong.

Financial highlights

• Total group sales fell by 1.4% to £6,756m, with like-for-like sales down 2.4% year-over-year.

• Gross margin increased by 40bps to 36.7%, supported by disciplined pricing and cost management.

• Adjusted PBT was down 0.5% to £334m; statutory pre-tax profit up 2.3% to £324m.

• Free cash flow was strong at £421m, up 21.5% YoY, aided by inventory phasing and tax refunds.

• Interim dividend held at 3.8p per share; £250m returned to shareholders YTD via dividends and buybacks.

Outlook and guidance

• Full-year adjusted PBT guidance tightened to £510m–£550m, raising the lower end by £20m.

• Free cash flow guidance upgraded to £410m–£460m, up from £350m–£410m.

• Share buyback program accelerated, with completion expected by March 2025.

• Q3 LFL sales to date down 0.3%, with UK & Ireland and France trading ahead of Q2 trend.

• On track for c.£120m of cost reductions in FY 24/25, weighted to H1.