Q3 Trading Update

RNS Number : 7583P

Kingfisher PLC

22 November 2016

 

Tuesday 22 November 2016

Q3 to 31 October 2016

Kingfisher reports sales of £3.0 billion, +1.8% LFL*

Financial overview and highlights: Sales 2016/17 £m % Total Change Reported % Total Change Constant currency % LFL Change 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 Development* 46 n/a n/a n/a 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 ·      £182m (53m shares) returned year to date via share buyback of the previously         announced c.£600m 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.

 

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