Kingfisher lifts outlook after strong half

Kingfisher reported adjusted pre-tax profit of £404 million for the six months to 31 July, a 9.9% increase compared with the same period a year earlier. Group total sales in the half-year rose 0.8% to £6.86 billion, while underlying like-for-like sales increased by 0.3% over the period.

The company said the improvement in half-year profitability was supported by a 70 basis-point increase in gross margin. Management also cited continued cost discipline as a key factor underpinning earnings resilience in a challenging consumer backdrop.

Results for the period were further aided by a £14 million UK business-rates refund, which provided an additional one-off benefit to profits. Together, these elements helped Kingfisher deliver profit growth despite only modest top-line expansion.

The 70 basis-point gross-margin increase reflected a focus on pricing, product mix and efficiency across Kingfisher’s retail banners. Combined with tight cost control, this margin expansion allowed the group to convert limited sales growth into a more substantial rise in earnings.

Cost discipline included efforts to manage operating expenses and maintain productivity in stores and distribution. The company’s ability to protect margin while supporting sales volumes was central to the improved financial performance over the half-year period.

The £14 million business-rates refund in the UK was a non-recurring contribution but nonetheless added to the overall profit outcome. Excluding this item, the group still demonstrated underlying progress through margin and operational measures.

Kingfisher reported that Screwfix continued to take market share in the UK, underscoring the strength of its trade-focused proposition. The group also gained share in Poland and Spain, highlighting the contribution of its international businesses to overall performance.

B&Q and Castorama were described as broadly holding market share, signalling stable positions in core DIY retail segments. By contrast, Brico Dépôt France was impacted by heatwaves, which weighed on trading conditions in that market.

These differing brand and geographic trends point to relatively stronger demand from professional trades and certain international regions, set against softer conditions in parts of the DIY segment. The mix of resilience and pressure across banners has shaped Kingfisher’s current trading profile.

On the back of the first-half performance, Kingfisher has upgraded its full-year adjusted pre-tax profit outlook. The new guidance reflects confidence that margin management, cost discipline and the strength of trade-focused formats such as Screwfix can help offset weaker DIY spending.

The refreshed outlook draws on the demonstrated ability to grow profit with only modest like-for-like sales gains. While some banners and regions face weather-related and consumer headwinds, the group’s diversified footprint and exposure to professional customers support its earnings expectations for the remainder of the year.