Kingfisher ups profit outlook as Screwfix offsets weak B&Q and France

Kingfisher PLC on Tuesday raised annual guidance, despite a "mixed" consumer environment, after reporting better-than-expected first half results.

In response, shares in the London-based do-it-yourself retailer jumped 8.6% to 332.10 pence each in London on Tuesday morning, the best performing stock on the FTSE 100 which was down 0.1%.

Kingfisher, which owns brands such as B&Q, Screwfix and Castorama, said pretax profit surged 18% to £400 million in the six months ended July 31 from £338 million the year prior. The prior year figure included a £31 million loss related to the sale of its business in Romania.

Adjusted pretax profit grew 9.9% to £404 million from £368 million, beating £372 million consensus cited by RBC Capital Markets. The current year includes a £14 million one-off business rates refund.

Sales amounted to £6.86 billion, a rise of 0.8% from £6.81 billion a year prior. Like-for-like sales edged up 0.1% in the half-year, with 1.0% growth in the second quarter.

Gross margin expanded 70 basis points to 38.4% from 37.7%, with retail profit margin of 7.1%, up from 6.6% on-year.

Like-for-like sales grew 5.6% at Screwfix in the first half of 2026, but fell 2.9% at B&Q, leaving UK & Ireland LFL growth at 0.4%.

LFL sales in France fell 2.3%, including declines of 0.5% at Castorama and 4.2% at Brico Depot. In Poland, LFL sales climbed 2.2%, while growth was 7.7% in Iberia.

Kingfisher said strong growth at Screwfix and in Poland and Iberia was driven by trade, and e-commerce initiatives, product innovation and seasonal categories. This was partly offset by lower sales at B&Q and Brico Depot France.

Market share gains were seen at Screwfix, TradePoint, Castorama Poland and Spain. Castorama France returned to growth in the second quarter and performed broadly in line with its market in the half, the firm said, while B&Q traded broadly in line with the market. Brico Depot France was impacted by heatwaves due to category mix, the FTSE 100 listing added.

Free cash flow in the half-year declined to £339 million from £478 million.

Kingfisher maintained its interim dividend at 3.8p per share and said it is starting a third tranche of its £300 million share buyback. The £50 million part of the overall programme will start immediately and end no later than December 15.

Chief Executive Thierry Garnier said: "While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance."

Kingfisher now sees adjusted pretax profit for the full year between £595 million and £635 million, its guidance range lifted from £565 million to £625 million.

Kingfisher sees free cash flow between £480 million and £520 million for the full year, lifting its outlook from £450 million and £510 million.

In the financial year ended January 31, Kingfisher reported adjusted pretax profit of £560 million and free cash flow of £512 million.

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