Kingfisher (KGF) Q3 24/25 TU earnings summary

Executive summary

• Q3 sales reached £3.2bn, with total sales flat in constant currency and down 0.6% reported; LFL sales declined 1.1% year-over-year.

• Trading was resilient in August and September, but October saw weakness in the UK and France due to consumer uncertainty linked to government budgets.

• All key banners performed in line or ahead of their markets, with Screwfix and TradePoint showing strong market share gains.

• E-commerce penetration rose to 18.8% in Q3, and trade sales penetration (ex-Screwfix) reached 16.5%.

Financial highlights

• UK & Ireland sales grew 1.3% (LFL +0.4%), driven by Screwfix (+4.6% sales, LFL +1.8%) and TradePoint (LFL +4.9%).

• France sales declined 4.2% (LFL -4.3%), with both Castorama and Brico Dépôt improving sequentially but still negative year-over-year.

• Poland sales rose 3.7% (LFL -0.4%), with market share gains and improved trends in big-ticket and seasonal categories.

• Iberia posted strong growth (sales +6.6%, LFL +6.6%), while Romania saw a 4.3% sales decline (LFL -2.0%).

• Koçtaş JV in Turkey expected to contribute a net loss of £25m to adjusted PBT for the full year.

Outlook and guidance

• FY 24/25 adjusted PBT guidance narrowed to £510m–£540m (from £510m–£550m); free cash flow guidance unchanged at £410m–£460m.

• Q4 trading to date shows improvement, with Group LFL sales at -0.5% for the first three weeks.

• Near-term market outlook remains uncertain due to political and macroeconomic factors, but focus remains on market share gains and cost control.

• On track to complete £300m share buyback by March 2025 and committed to returning surplus capital.