Kingfisher (KGF) Investor Update summary

Strategic positioning and growth drivers

• Holds leading positions in key markets with a £160bn addressable market and strong structural growth drivers.

• Distinctive advantages include exclusive brands (44% of sales), advanced e-commerce, and retail media.

• Trade customer focus is proven, with over 30% of sales from this segment and higher spending.

• E-commerce sales penetration reached 19%, with a target of 30%; marketplace GMV up 62% to £327m.

• Medium-term priorities include store expansion, sales growth ahead of markets, and adjusted PBT growth.

Financial performance and capital allocation

• Group sales declined 0.8% (constant currency), LFL sales down 1.7%, but gross margin rose 50bps to 37.3%.

• Adjusted PBT was £528m (down 7%), statutory PBT £307m; free cash flow strong at £511m.

• Net debt just over £2bn (mainly leases), net leverage at 1.6x EBITDA; £453m returned to shareholders, 14% higher YoY.

• New £300m share buyback program announced, supported by robust cash generation.

• CapEx at 2.5–3% of sales; dividend policy targets 36–44% payout ratio, with £1.9bn returned since 2021.

Regional and segment performance

• UK & Ireland: Sales up 1.2% to £6,456m, strong trade and e-commerce growth, TradePoint LFL +6.4%.

• France: Sales £3,883m, LFL down 6.2%, market share gains despite weak consumer backdrop, cost reductions.

• Poland: Sales up 3.2% to £1,788m, strong trade and e-commerce growth, profit margin up to 5.1%.

• Sale of Romanian business for €70m expected to complete in H1; strong actions in Turkey and growth in Iberia.