Kingfisher (KGF) H2 2025 earnings summary

Executive summary

• Achieved market share gains in the UK & Ireland, France, and Poland, driven by strategic initiatives in trade and e-commerce, with accelerated restructuring in France.

• Disciplined financial performance in a challenging market, with adjusted profit before tax of £528m and free cash flow of £511m, in line with or ahead of guidance.

• Strong operational execution, including improved gross margin and inventory management.

• Announced a new £300m share buyback programme, reflecting confidence in the medium- to long-term outlook.

Financial highlights

• Group sales of £12,784m, down 0.8% year-over-year; like-for-like sales down 1.7%.

• Gross margin increased by 50 basis points to 37.3%.

• Adjusted profit before tax was £528m, down 7% year-over-year; statutory profit before tax was £307m, impacted by non-cash impairments.

• Free cash flow was £511m, supported by inventory reductions.

• Returned £453m to shareholders via dividends and buybacks, up 14% year-over-year.

Outlook and guidance

• FY 2025 adjusted PBT expected between £480m–£540m; free cash flow guidance for FY 2025 is £420m–£480m.

• UK & Ireland home improvement market expected to be flat to low single-digit growth; France expected to decline low to mid-single digits or remain flat; Poland expected to range from low single-digit decline to low single-digit growth.

• Focus on offsetting £145m opex headwinds via gross margin and cost mitigations.

• Announced new £300m share buyback program.