REG - Kingfisher PLC - Half Year Results
Tue 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250923:nRSW3247Aa&default-theme=true
RNS Number : 3247A Kingfisher PLC 23 September 2025
Half year results for the six months ended 31 July 2025 (unaudited)
Strong H1 performance.
Upgrading full year profit & free cash flow guidance
Financial summary % Total Change % Total Change % LFL* Change
2025/26 2024/25 Reported Constant currency* Constant currency
Sales £6,811m £6,756m +0.8% +0.9% +1.3%
Gross profit £2,569m £2,480m +3.6% +3.6%
Gross margin %* 37.7% 36.7% +100bps +100bps
Operating profit £383m £374m +2.1%
Statutory pre-tax profit (PBT) £338m £324m +4.1%
Statutory basic EPS 13.4p 12.8p +4.1%
Net cash flows from operating activities £928m £810m +14.6%
Interim dividend per share 3.80p 3.80p -
Adjusted metrics
Retail profit* £452m £420m 7.5% +7.1%
Retail profit margin %* 6.6% 6.2% +40bps +40bps
Adjusted pre-tax profit (PBT)* £368m £334m +10.2%
Adjusted basic EPS* 15.3p 13.2p +16.5%
Free cash flow* £478m £421m +13.5%
Net debt*((1)) £(1,726)m £(1,952)m n/a
*See page 4 for further details on non-GAAP measures and other terms
Highlights
· Underlying(±) like-for-like sales of +1.9% (Q2: +1.4%) driven by
volume & transaction growth. Underlying total sales growth of +1.5% (total
sales +0.9% at constant currency and a (0.6%) calendar impact((2)))
· Strong UK performance across both B&Q and Screwfix with LFL +4.4%
and 3.0% respectively with improving sequential trends in France and Poland
· Market share gains((3)) in the UK, France and Spain. Poland broadly
in line with the market
· Continued strategic delivery with strong sales growth in trade
(+11.9%) and e-commerce((4)) (+11.1%)
· Improved quarter-on-quarter growth trends in core and a third
consecutive quarter of big-ticket underlying growth, with strong
weather-related seasonal performance led by the UK
· Retail profit margin growth of +40bps to 6.6% driven by gross margin
and operating cost initiatives, leading to +10.2% growth in adjusted PBT to
£368m and +16.5% growth in adjusted EPS to 15.3p
· Statutory pre-tax profit growth of +4.1% to £338m
· Free cash flow of £478m (+13.5%) from earnings growth and inventory
management
· Upgrading full year guidance((5)) now targeting the "upper end" of FY
25/26 adjusted PBT of c.£480m to £540m, and free cash flow of c.£480m to
£520m (previously £420m to £480m)
· Accelerating SBB with current £300m programme to complete by March
2026
Thierry Garnier, Chief Executive Officer, said:
"We delivered a strong first half with high quality underlying like-for-like
sales growth of 1.9%, driven by increased volumes and transactions. Our teams
continue to execute at a high level, delivering double-digit growth in our
strategic initiatives, trade and e-commerce, which supported our market share
gains. We were encouraged by underlying quarter-on-quarter growth in our core
categories, and a third consecutive quarter of growth in big ticket sales.
"In a higher cost environment, we remain disciplined on managing costs and
cash. Our margin and operating cost initiatives combined with the positive
impact of our strategic drivers enabled us to deliver 10.2% growth in adjusted
PBT and 16.5% growth in adjusted EPS. Free cash flow rose by 13.5%.
"Our expectations for our markets for the year remain consistent with what we
outlined in March, whilst mindful of mixed consumer sentiment and political
uncertainty. Combined with our H1 performance, this gives us the confidence to
upgrade our full year profit and free cash flow guidance and to accelerate our
share buyback programme. We remain focused on executing our strategic
priorities, maintaining cost discipline and driving shareholder returns."
(±)Underlying sales growth refers to sales excluding calendar and leap year
impact (LFL sales +1.3% + 0.6% = underlying LFL of +1.9%)((2)).
Note: All commentary below is in constant currency unless otherwise stated.
Financial highlights
Solid operational execution and progress on our strategic initiatives enabled
us to deliver +1.9% underlying LFL sales growth in H1, outperforming our
markets. We saw sequential improvement in underlying trends in core and
big-ticket categories, and robust sales growth in seasonal products due to
good weather in the UK. B&Q and Screwfix both delivered a strong H1 driven
by trade and e-commerce initiatives, product innovation, and transference from
the closure of Homebase stores. Our France and Poland banners delivered a
sequential improvement in sales from Q1 to Q2 in a subdued but improving
market backdrop.
Gross margin increased by 100 basis points to 37.7%, driven by leveraging
Kingfisher's buying and sourcing scale, by margin accretive initiatives
including growth from e-commerce marketplaces and retail media, improved
returns on promotional activity through the use of our AI solutions, and
improved inventory management and clearance activity.
We entered the year with significant cost headwinds (c.£145m) consisting of
wage inflation, higher UK employer national insurance contributions, increased
social taxes in France and the new packaging fees in the UK (impacting our
banners at the gross margin level). We expect to fully mitigate these costs
through gross margin and cost initiatives. In addition, we also received a
£33m prior year benefit (H1 24/25: £24m) of one-off business rates refund in
the UK. We have made good progress mitigating these headwinds in H1, and
combined with H2 weighted marketing and tech spend, this resulted in retail
profit growth of +7.1% to £452m, representing a 6.6% profit margin (+40bps vs
H1 2024/25). At reported rates, adjusted pre-tax profit of £368m, was up
10.2% reflecting higher retail profit and lower net finance costs, partially
offset by higher central costs. Statutory PBT of £338m, was up +4.1% (H1
24/25: £324m), reflecting higher operating profit and lower net finance
costs. Our strong profit performance and our ongoing share buyback programme
drove a 16.5% increase in adjusted EPS to 15.3p. Statutory basic EPS was up
+4.1% YoY to 13.4p.
Free cashflow in H1 increased 13.5% to £478m driven by earnings growth,
receipts of tax settlements relating to prior years and H2 weighted capex
investment. Leverage reduced to 1.3x adjusted EBITDA (FY 24/25: 1.6x),
reflecting stronger free cash flow, further supported by £94m net one-off
cash inflows, primarily comprising a £64m EU state aid tax refund and £33m
in net proceeds from the sale of Romania.
Please refer to Section 1 and 3 of this statement for a detailed review of our
financial performance.
Strategic highlights
We have made excellent progress across all pillars of our Powered by
Kingfisher strategy in H1.
Group trade sales grew +11.9% YoY to £1.9bn now representing 28.0% of Group
sales as we continue to develop our trade proposition across our banners,
leveraging our existing store estate. These Group initiatives involve bespoke
loyalty programmes, enhanced trade specific product ranges, further roll out
of trade counters, increased investment in dedicated trade colleagues and an
enhanced omni-channel customer experience. We have also upgraded our trade
service offerings, including customer financing, tool rental and improved
fulfilment capabilities.
We continued to execute our Group strategy at pace across our banners in the
half. In the UK, we onboarded 33 additional trade sales partners at B&Q,
and our recently launched Tradepoint app has driven a 24.4% increase in click
& collect trade sales, generating increased footfall to store. At
Screwfix, we have enhanced the Sprint proposition, with delivery now available
in as little as 20 minutes. In France, we have successfully rolled out our
trade proposition across the Castorama estate in the past 6 months. Brico
Dépôt grew trade sales by +23.8% through a combination of initiatives
including recruitment of trade sales partners, membership recruitment and
targeting campaigns. In Poland the new loyalty programme, launched last year,
continued to resonate with trade customers with a 36% increase in membership
since year end and we more than doubled the number of dedicated trade
colleagues in store.
Group e-commerce sales grew by +11.1% YoY to £1.4bn with penetration((6))
reaching 20.0% as we continue to evolve our digital proposition through
marketplace, retail media, apps, data and fulfilment capabilities. This
supports a connected digital ecosystem with the store at its core.
Across our banners, we have delivered significant enhancements to our apps,
including the rollout of exclusive app-only features and personalised,
targeted promotions, which are strengthening customer engagement and drive
conversion. Group app sales now account for 34.3% of total group e-commerce
sales, +1.4pts YoY (H1 24/25: 32.9%).
Marketplaces are now live across the UK, France, Poland, Iberia, and Turkey,
with strong growth in both vendors and product offering. In H1, Group GMV((7))
growth was up +62.0% to £262m (H1 24/25: £162m). We have unlocked
cross-border vendor onboarding and are piloting a UK-first marketplace click
& collect service at B&Q, targeting 300 stores by the end of October.
B&Q marketplace GMV increased by +45.4% YoY to £228m leading to a retail
profit contribution((8)) of c.£7m.
Our marketplaces are driving incremental traffic that directly benefits our 1P
proposition - for example, c.50% of B&Q's marketplace customers are new to
DIY.com, and subsequently, c.15% of these go on to purchase a B&Q 1P
product.
Retail media continues to rapidly scale, with successful launches in Screwfix
and Castorama Poland, alongside expanded offerings in B&Q, Castorama
France, and Brico Dépôt France.
We continue to build a data-led customer experience, using AI and advanced
technology to enhance personalisation, product recommendations, pricing, and
supply chain efficiency. As part of this, we have launched Core IQ - our new
data monetisation platform - in Castorama France, offering vendors deeper
trading and digital performance insights.
We are building on our different banners with the opening of eight newly
converted B&Q stores from former Homebase sites and the continued
expansion of Screwfix stores across the UK and Ireland. In H2 we have plans to
open up to 25 Screwfix UK & ROI stores.
We are pleased with progress in Screwfix France, with +52% store LFL in H1,
and have plans to open up to a further 5 stores in H2.
Please refer to Section 2 of this statement for a detailed update on all our
strategic priorities.
Path to medium-term profit target in France
In 2024 we announced a plan for Castorama and Brico Dépôt France to drive
the next level of our performance and profitability. The plan targets a retail
profit margin for France of c.5% to 7% over the medium term, driven by a
combination of self-help measures, including the restructuring and
modernisation of approximately one-third of Castorama's store network, and
operating leverage from an improved market environment. Our retail profit
margin in H1 improved by 20bps to 3.5%.
While we are pleased with the delivery of our plan, the French market has
declined by c.10% (per GfK), since the announcement in March 2024 of our
medium-term margin target of c.5-7%. We remain confident in delivering this
target of c.5-7%, with the timing and trajectory of reaching this target
dependent on the pace of the market recovery. Despite current headwinds, we
remain optimistic on our outlook for the market in the medium-term.
Please refer to page 7 of this statement for a review of our performance in
France, including progress in the restructuring and modernisation of
Castorama's lowest-performing stores.
Guidance for FY 25/26 - upgraded.
Our expectations for our markets for the year remain consistent with what we
outlined in March, whilst mindful of mixed consumer sentiment and political
uncertainty. Combined with our strong H1 performance, this gives us the
confidence to upgrade both our full year profit and free cash flow guidance
and accelerate our recurring share buyback programme.
We now expect to deliver FY 25/26 adjusted PBT at the upper end of the
previously guided range of approximately £480m to £540m. This reflects our
strong profit performance in the first half, alongside second half weighted
investment in marketing and technology to support our strategic growth
initiatives.
We have also raised our FY 25/26 free cash flow guidance range to c.£480m to
£520m, up from the previous range of £420m to £480m. This upgrade is driven
by the uplift in adjusted PBT expectation, continued progress in reducing net
inventory, and a second half weighted capital expenditure profile as we invest
in enhancing the customer experience across both in-store and online channels
to support long-term growth.
A review of our market backdrop and guidance can be found in the Section 5 to
this statement.
Share buyback programme - accelerated.
In line with our capital allocation policy (details of the policy are
available here
(https://www.kingfisher.com/~/media/Files/K/Kingfisher-Plc/Universal/investors/result-reports-presentation/2025/20250325-2024-25-full-year-results-rns-part-1-vf.pdf)
), in March 2025 the Board determined that a further £300m of surplus capital
was available to return to shareholders via a share buyback programme. As of
31 July, we had repurchased £93m worth of shares under this programme. The
third tranche of the programme will commence imminently.
Reflecting stronger free cashflow, as outlined above, and additionally
supported by £94m of one-off exceptional cash inflows, we will accelerate the
current share buyback programme, with completion expected by the end of March
2026.
The remainder of this release consists of six sections:
1) Trading review by division
2) Strategy update
3) Financial review
4) Forward-looking statements
5) Market update and technical guidance
6) Interim condensed financial statements (unaudited)
7) Glossary
Footnotes
((1)) Includes £2,255m of lease liabilities (H1 24/25: £2,324m), including
£2m of lease liabilities held for sale (H1 24/25: £nil).
((2)) Underlying growth refers to LFL sales excluding calendar and leap year
impact:
Leap year impact reflects the impact of an extra day of trading on Thursday 29
February 2024. The estimated impact of the leap year on Q1 25/26 LFL sales was
-1.1%, carrying through to an impact on H1 25/26 LFL sales of -0.5%. Calendar
impact represents the impact of the annual calendar shift on LFL sales growth
due to different days of the week falling into or out of the current period
compared to the prior period. For example, historically, higher trading is
seen on a Friday and Saturday as compared to a Sunday. This includes the
impact of national public holidays falling on different days of the week
compared to the prior period. The estimated impact of the annual calendar
shift on Q1 25/26 LFL sales was +0.2%, and for Q2 25/26 LFL sales was -0.5%,
carrying through to an overall impact on H1 25/26 LFL sales of -0.1%.
((3)) Market data used for assessing market share: for the UK according to
GfK, BRC (British Retail Consortium) and Barclays for the period of February
2025 to July 2025, France and Poland market data according to GfK for the
period of February 2025 to July 2025. For Spain according to AECOC panel.
((4)) Total e-commerce sales are first-party e-commerce sales plus marketplace
gross sales. References to digital or e-commerce sales growth relates to
growth in constant currency and covers the total Group.
((5)) Guidance assumes current exchange rates.
((6)) E-commerce sales penetration % represents total e-commerce sales as a
percentage of sales. For the purpose of this calculation only, sales are
adjusted to replace marketplace net sales with marketplace gross sales. It is
used to track the success of our e-commerce strategy. Please refer to the
glossary for full definitions of e-commerce metrics.
((7)) Marketplace GMV is the total transaction value (including VAT) from the
sale of products supplied by third-party e-commerce marketplace vendors. What
is recorded in revenue is the commission "take rate" which is c.10-15% of GMV.
((8)) Marketplace retail contribution includes only directly attributable run
costs.
Non-GAAP measures and other terms
Throughout this release '*' indicates the first instance of a term defined and
explained in the Glossary (Section 7). Not all the figures and ratios used are
readily available from the unaudited half year condensed financial statements
included in Section 6 of this announcement. Management believes that these
non-GAAP measures (or 'Alternative Performance Measures'), including adjusted
profit measures, constant currency and like-for-like (LFL) sales growth, are
useful and necessary to assist the understanding of the Group's results. Where
required, a reconciliation to statutory amounts is set out in the Financial
Review (Section 3).
Contacts
Tel: Email:
Investor Relations +44 (0) 20 7644 1082 investorenquiries@kingfisher.com (mailto:investorenquiries@kingfisher.com)
Media Relations +44 (0) 20 7644 1030 corpcomms@kingfisher.com (mailto:corpcomms@kingfisher.com)
Teneo +44 (0) 20 7420 3184 Kfteam@teneo.com (mailto:Kfteam@teneo.com)
Half year results announcement and data tables
This announcement and data tables for H1 25/26 can be downloaded from the
Investors section of our website at www.kingfisher.com/investors
(http://www.kingfisher.com/investors) .
Results presentation and Q&A
A pre-recorded analyst and investor presentation will be broadcast via the
Investors section of our website at www.kingfisher.com
(http://www.kingfisher.com) at 08.30 (UK time), which will be immediately
followed by a live virtual Q&A session with management.
For enquiries, please email investorenquiries@kingfisher.com
(mailto:investorenquiries@kingfisher.com) .
Financial calendar
Q3 25/26 trading update 25 November 2025
(±) Dates are provisional and may be subject to change
American Depository Receipts
Kingfisher American Depository Receipts are traded in the US on the OTCQX
platform: (OTCQX: KGFHY) www.otcmarkets.com/stock/KGFHY/quote
(http://www.otcmarkets.com/stock/KGFHY/quote)
Section 1: Trading review by division
Note: all commentary below is in constant currency.
UK & IRELAND
£m 2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
H1
B&Q 2,170 2,075 +4.6% +4.6% +4.4%
Screwfix 1,358 1,301 +4.4% +4.4% +3.0%
Total sales 3,528 3,376 +4.5% +4.5% +3.9%
Q2
B&Q 1,114 1,092 +2.1% +2.1% +1.3%
Screwfix 683 653 +4.7% +4.6% +3.1%
Total sales 1,797 1,745 +3.1% +3.0% +2.0%
H1
Retail profit 344 325 +5.7% +5.7%
Retail profit margin % 9.7% 9.6% +10bps +10bps
Market
- Low single digit market growth.
- The UK consumer has remained resilient with improving mortgage
affordability, real wage growth, and stable housing transactions in H1. The
home improvement market has also been supported by favourable weather
conditions in Q1, driving strong demand for seasonal products.
- We remain mindful of early signs of softness in the labour market,
uncertainty ahead of the Autumn Budget, and rising inflation.
B&Q
- Total sales +4.6% (LFL +4.4%) to £2,170m, with growth driven by our
initiatives in trade, e-commerce and innovation in big ticket categories. This
was further supported by customer transference from the closure of Homebase
stores and seasonal products due to favourable weather.
- Core LFL growth was led by painting and tools & hardware
categories.
- Big-ticket LFL growth was underpinned by our successful range reviews.
The introduction of our tiered kitchen offering - Essential, Select, and
Signature - has broadened customer appeal and contributed meaningfully to
performance.
- Strong seasonal LFL growth was due to our outdoor categories, which
also benefitted from recent Homebase store closures.
- Market share gains (as measured by BRC, Barclays, and GfK), driven by
progress in our strategic initiatives of trade and e-commerce and benefit from
Homebase stores closures in 2024.
- TradePoint, B&Q's trade focused banner delivered +6.9% LFL growth
and now represents 22.4% of B&Q total sales (H1 24/25: 22.0%). A clear
focus on product, price, and customer engagement, supported by further
investment in dedicated trade sales partners - now present in 77 stores (up
from 44 as at 31 January 2025) helped drive H1 performance. TradePoint is now
present in 222 B&Q stores, representing 70% of the total estate.
- We have improved brand visibility, with TradePoint now integrated into
B&Q advertising campaigns during the half. TradePoint saw strong growth in
e-commerce, particularly in click & collect, supported by high app
engagement that continues to drive store footfall. Our TradePoint app supports
the trade loyalty programme and helps customers track spend thresholds. Active
app membership grew 9% YoY to 1.4 million, with app sales now accounting for
25% of TradePoint's online sales.
- E-commerce sales rose +23.8% YoY, with penetration of 16.4% at H1 (H1
24/25: 14.1%). Strong growth in marketplace with GMV((1)) up +45.4% to £228m
leading to a retail profit contribution((2)) of c.£7m, supported by progress
in onboarding cross-border vendors with 69 onboarded as at 31 July.
- B&Q opened nine stores - including eight converted Homebase sites
- and closed two. As of 31 July, it operated 317 stores across the UK and
Ireland. Space growth contributed +0.2% to total B&Q sales.
Screwfix
- Total sales +4.4% (LFL +3.0%) to £1,358m, with strong growth across
all categories reflecting the benefit of our strategic initiatives and healthy
demand from trade customers.
- Market share gains (as measured by BRC, Barclays, and GfK), driven by
progress in our strategic initiatives.
- E-commerce sales increased by 4.3% YoY and e-commerce sales
penetration reached 59.2% (H1 24/25: 59.3%). H1 performance was supported by
continued growth in the Screwfix app, with app sales up +9.2% YoY.
- The app now accounts for over 23% (H1 24/25: 22%) of total sales.
Screwfix app remains the most convenient way to shop, offering personalised
rewards, a visual search engine via "Lens", streamlined collection via
"Check-In", and rapid delivery through "Screwfix Sprint" (now delivering in as
little as 20 minutes).
- Space growth contributed c.1.4% to total Screwfix sales. Screwfix
opened 9 new stores (including 4 'Screwfix City' ultra-compact format stores)
in the UK along with 3 closures bringing its total to 958 as of 31 July. We
are targeting up to 35 new store openings in the UK & Ireland in FY 25/26
and remain on track to reach the medium-term goal of over 1,000 stores.
- The results for Screwfix France are captured in 'Screwfix France and
Other' - see Other International below for further information.
UK Retail Profit
- Gross margin increased 90 basis points supported by the
margin-accretive impact of B&Q's expanding marketplace, effective
management of product costs and pricing and supplier negotiations.
These drivers more than offset headwinds from new packaging taxes in the half
and the adverse category sales mix within B&Q.
- Operating costs increased by 7.5% driven by higher staff costs
(reflecting wage inflation and flexing to support increased volumes -
alongside increased UK employer NI contributions), costs from 28 net new store
openings since H1 24/25, and the annualisation of last year's £24m one-off
business rates refund at B&Q in H1. Cost increases were partially offset
by savings achieved through our structural cost reduction programme.
- Retail profit increased 5.7% to £344m (H1 24/25: £325m, at reported
rates). Retail profit margin % increased by 10 basis points to 9.7% (H1 24/25:
9.6%, at reported rates).
FRANCE
£m 2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
H1
Castorama 1,074 1,094 (1.9)% (1.3)% (1.4)%
Brico Dépôt 974 1,005 (3.0)% (2.5)% (2.9)%
Total sales 2,048 2,099 (2.4)% (1.9)% (2.1)%
Q2
Castorama 572 565 +1.1% +0.7% 0.0%
Brico Dépôt 500 508 (1.5)% (2.0)% (2.4)%
Total sales 1,072 1,073 (0.1)% (0.6)% (1.2)%
H1
Retail profit 72 69 +4.0% +4.6%
Retail profit margin % 3.5% 3.3% +20bps +20bps
Market
- Market decline of low to mid single digits.
- Subdued French consumer in H1, despite lower interest rates, higher
mortgage lending and increased housing starts.
- Consumer sentiment remains subdued amidst an uncertain political
environment.
Castorama
- Total sales -1.3% (LFL -1.4%) to £1,074m with improving sequential
trends by quarter (Q1 LFL -3.0%, Q2 LFL flat).
- Underlying LFL sales performance (excluding calendar and leap year
impacts) across core and 'big-ticket' categories reflected the subdued but
improving housing and market backdrop, while seasonal sales were positive for
the half, supported by favourable weather.
- Market share gains (as measured by GfK), as Castorama remained focused
on delivering strategic priorities.
- Castorama has successfully rolled out its 'CastoPro' trade proposition
across the Castorama France estate in the past 6 months. Trade penetration
reached 3.1% at the end of H1 (end of H1 24/25: 0.3%).
- E-commerce sales increased by +32.7% YoY to £98m, with e-commerce
sales penetration increasing to 9.0% (H1 24/25: 6.8%). E-commerce growth was
driven by the rapid expansion of Castorama's marketplace - reaching online
penetration of 19.1% - and continued success of Hello Casto, the in-house
developed AI virtual assistant, which enhances customer experience and
supports conversion.
- Castorama also successfully opened its first two franchise stores in
June 2025, following the transfer from the existing estate. As of 31 July,
Castorama had a total of 94 stores in France (including 2 Franchise stores).
Update on Castorama's store restructuring and modernisation plan
Castorama is making rapid progress in the restructuring and modernisation of
its lowest-performing stores, as part of the France plan. The programme
continues to focus on four areas: rightsizing, comprehensive
refits/modernisations, transfers to Brico Dépôt, and franchising. In the
prior year, 13 stores were addressed under these initiatives, delivering
encouraging early results:
- Four rightsized stores, following their reopening, delivered
significant double-digit percentage improvements in sales density compared to
the Castorama France average.
- A comprehensive refit of the Toulon La Seyne store was completed in H1
and has resulted in a LFL sales ahead of the Castorama France average.
- Five modernisations, following their reopening, delivered improvements
in sales density compared to the Castorama France average.
- One store, transferred to Brico Dépôt in the prior year, was
successfully reopened under the Brico Dépôt banner in H1 and is currently
performing in line with expectations.
- The first two franchises were opened in June are also trading in line
with expectations.
Building on this momentum, Castorama has initiated work on a further 11 stores
across the same four areas. Full details of these developments will be shared
as part of our FY 25/26 results announcement.
Brico Dépôt
- Total sales -2.5% (LFL -2.9%) to £974m, with improving sequential
trends by quarter (Q1 LFL -3.3%, Q2 LFL -2.4%) and performance in line with
the market (as measured by GfK).
- Core sales were softer, particularly in building and joinery, as the
heatwave impacted larger building projects. Seasonal categories performed
well, benefiting from increased demand during the warmer period. Big-ticket
LFL sales were positive, supported by recent range reviews.
- Brico Dépôt's lower exposure to seasonal and outdoor categories
meant it benefited less from favourable Q2 weather conditions than Castorama,
while its greater weighting in building and joinery was more exposed to the
impact on building projects.
- Continued development of trade proposition, with service desks,
dedicated colleagues and an enhanced loyalty programme. Trade penetration
reached 12.1% at H1 (H1 24/25: 9.5%).
- Brico Dépôt successfully opened the Castorama store in Q1 that was
transferred to its banner in the prior year. As of 31 July, Brico Dépôt had
a total of 127 stores in France.
France Retail profit
- Gross margin increased by 110 basis points, reflecting the effective
management of product costs, supplier negotiations, lower stock provisions
driven by better inventory management, and lower logistics costs from the
reduction in DC space.
- Operating costs increased by 0.8%, with increases in staff pay, social
taxes, partially offset by savings from our structural cost reduction
programme.
- Retail profit increased +4.6% to £72m (H1 24/25: £69m, at reported
rates). Retail profit margin % increased by 20 basis points to 3.5% (H1 24/25:
3.3%, at reported rates).
Poland
£m 2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
H1
Total sales 946 941 +0.5% (0.5)% (2.1)%
Q2
Total sales 503 496 +1.4% 0.0% (1.2)%
H1
Retail profit 51 50 +2.5% +1.4%
Retail profit margin % 5.4% 5.3% +10bps +10bps
Market
- Market broadly flat, with political factors, elevated inflation and
interest rates weighing on consumer demand in H1.
- Signs of recovery with falling inflation, real wage growth, interest
rate cuts and improvement in consumer confidence.
Poland sales
- Total sales -0.5% (LFL -2.1%) to £946m, reflecting a challenging
market backdrop with performance broadly in line with the market (as measured
by GfK).
- The decline was driven primarily by volume, partially offset by a
favourable mix impact.
- Underlying core category sales returned to growth in Q2, following a
soft performance in Q1 due to market weakness. Underlying 'big-ticket' sales
were positive for the half driven by strong customer demand for new kitchen
ranges. Seasonal category LFL sales were impacted by unfavourable weather
during the half, as Poland experienced an unusually cold spring and summer.
- Q2 saw a sequential improvement versus Q1 broadly reflecting overall
market trends.
- E-commerce sales increased by 18.9% YoY to £41m, benefiting from
positive early results from its marketplace (launched in Jan 25) with
marketplace e-commerce penetration reaching 11.4% at H1.
- The business continues to focus on expanding its trade customer
proposition through further rollout of 'CastoPro' zones within its stores,
specialised sales partners and the development of a dedicated mobile app for
trade. The trade app has seen 170k downloads since launch. This has helped
trade penetration reach 25.2% at H1 (H1 24/25: 15.6%).
- Space growth contributed c.1.6% to total Poland sales from store
openings in the prior year. Castorama has a total 107 stores in Poland as of
31 July.
Poland Retail profit
- Gross margin increased by 10 basis points, reflecting the effective
management of product costs, supplier negotiations and lower stock provisions
driven by better inventory management. This is partially offset by increased
promotional activity and mix (category and channel).
- Operating costs decreased by 0.5% with increases in staff pay offset
by our structural cost reduction programme, and the flexing of staff levels
and discretionary spend.
- Retail profit increased by 1.4% to £51m (H1 24/25: £50m, at reported
rates). Retail profit margin % increased by 10 basis points to 5.4% (H1 24/25:
5.3%, at reported rates).
OTHER INTERNATIONAL
The 'Other International' segment consists of businesses and operating
segments that do not meet the quantitative thresholds to be separate
reportable segments under IFRS 8.
2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
Sales (£m)
H1
Iberia 219 200 +9.6% +10.2% +10.2%
Romania** 60 132 n/a n/a n/a
Screwfix France & Other(±) 10 8 +15.3% +15.9% n/a
Other International 289 340 (15.2)% (14.4)% +8.1%
Other International (excl. Romania) 229 208 +9.8% +10.4% +10.7%
Q2
Iberia 120 107 +11.7% +11.3% +11.3%
Romania - 69 n/a n/a n/a
Screwfix France & Other(±) 5 4 +23.2% +22.8% n/a
Other International 125 180 (30.8)% (30.8)% +12.0%
Other International (excl. Romania) 125 111 +12.2% +11.8% +12.0%
H1
Retail profit (£m)
Iberia 11 6 +82.4% +83.5%
Romania** (3) (6) n/a n/a
Screwfix France & Other(±) (17) (18) +5.3% +4.8%
Turkey (50% JV) (6) (6) n/a n/a
Other International (15) (24) +38.1% +34.3%
Other International (excl. Romania) (12) (18) (33.3)% (28.1)%
(±) 'Screwfix France & Other ' consists of the consolidated results of
Screwfix International, and results from franchise and wholesale agreements.
The prior year comparator includes NeedHelp - we divested our c.80% equity
interest on 18 July 2024.
**On 2 May 2025 the Group completed the divestment of its 100% equity interest
in Brico Dépôt Romania. The Group recognised a £31m loss on disposal
(included in adjusting items) as at H1. Please see note 5 and 17 of the
condensed financial statements in Section 6 for more details.
Iberia
- Sales increased by +10.2% (LFL +10.2%) to £219m, with positive LFL
sales in core, 'big-ticket' and seasonal categories, driven by an improved
customer offering, enhanced ranges and leading price positioning in key
categories. Growth was also supported by strong demand in Valencia following
last year's flood damage.
- Market share gains in Spain as per AECOC panel.
- Progress in trade with penetration rising to 17.6% (H1 24/25: 15.8%),
while the e-commerce marketplace continued to scale, reaching 27.6% of online
sales in H1.
- Retail profit increased to £11m (H1 24/25: £6m, at reported rates),
reflecting higher gross profit, and improved operating cost leverage.
Screwfix France & Other
- 'Screwfix France & Other' includes Screwfix France, and results
from franchise and wholesale agreements.
- Screwfix remains focused on building brand awareness in northern
France (25% at H1, +7pts YoY) and enhancing its customer proposition through
Screwfix Sprint, trade brands and trade-focused campaigns. Store LFL sales
grew +52% ((3)).
- Screwfix had a total of 30 stores in operation in France as of 31 July
2025 (H1 2024/25: 25). Targeting up to 5 store openings in FY 25/26.
- We currently have seven partners operating in EMEA which are buying
selected Own Exclusive Brand (OEB) products, including Altex in Romania
following their purchase of Brico Dépôt Romania.
- Combined retail loss of £17m in line with expectations (H1 24/25:
£18m reported retail loss).
Turkey
- Total contribution to Group adjusted PBT was a net loss of £9m (H1
24/25: £13m).
- LFL sales were negative in H1, but improved over the period.
- Improvement in net loss was driven by gross margin and cost efficiency
initiatives, as well as a reduced impact from hyperinflation accounting.
- Koçtaş's comprehensive restructuring programme - including
significant headcount reductions, closure of loss-making stores, and
rightsizing - has also begun to contribute to operational performance. As of
30 June 2025, the store count stood at 205, down from 369 in H1 24/25.
Romania
- On 2 May 2025 the Group completed the divestment of its 100% equity
interest in Brico Dépôt Romania for proceeds of £53m. The Group recognised
a £31m loss on disposal (included in adjusting items) as at H1. Please see
note 5 and 17 of the condensed financial statements in Section 6 for more
details.
Footnotes to trading review by division:
((1)) Marketplace GMV is the total transaction value (including VAT) from the
sale of products supplied by third-party e-commerce marketplace vendors. What
is recorded in revenue is the commission "take rate" which is c.10-15% of GMV.
((2)) Marketplace retail contribution includes only directly attributable run
costs.
((3)) Store LFL sales excludes online sales (Screwfix France launched as an
online-only proposition in April 2021, with the first store opening in October
2022).
LFL sales by category
H1
% LFL Change((1))
Core((11)) 'Big-ticket'((12)) Seasonal((13)) H1 25/26
UK & Ireland +1.8% +5.9% +9.7% +3.9%
-B&Q +1.3% +8.0% +9.6% +4.4%
-Screwfix +2.4% +1.2% +10.7% +3.0%
France (3.8)% (2.4)% +1.9% (2.1)%
-Castorama (2.4)% (4.8)% +2.6% (1.4)%
-Brico Dépôt (5.1)% (0.1)% +0.8% (2.9)%
Poland (2.5)% +0.5% (2.5)% (2.1)%
Other International* +9.2% +6.9% +5.9% +8.1%
-Iberia +12.5% +5.8% +7.9% +10.2%
-Romania (4.1)% +8.7% +1.7% n/a
Group LFL (0.1)% +1.8% +5.1% +1.3%
Excluding calendar impact +0.5% +2.4% +5.7% +1.9%
Q2
% LFL Change((1))
Core((11)) 'Big-ticket'((12)) Seasonal((13)) Q2 25/26
UK & Ireland +2.2% +9.7% (1.6)% +2.0%
-B&Q +1.2% +12.6% (2.4)% +1.3%
-Screwfix +3.1% +3.5% +3.1% +3.1%
France (2.6)% (1.5)% +2.1% (1.2)%
-Castorama (0.7)% (5.3)% +4.0% 0.0%
-Brico Dépôt (4.4)% +1.9% (1.0)% (2.4)%
Poland (0.9)% +3.1% (4.2)% (1.2)%
Other International* +12.0% +6.6% +16.9% +12.0%
-Iberia +11.1% +5.7% +16.9% +11.3%
-Romania n/a n/a n/a n/a
Group LFL +0.7% +4.0% (0.2)% +0.9%
Excluding calendar impact ((2)) +1.2% +4.5% +0.3% +1.4%
*Includes Screwfix France and other
· Core (63% of sales): Geographic performance was in line with
consumer trends - resilient in the UK and Iberia, softer in France and Poland.
Tools and paint subcategories delivered strong growth, led by Screwfix and
B&Q respectively.
· 'Big-ticket' (14% of sales): Underlying growth was led by kitchen
and bathroom & storage category sales at B&Q, supported by recent
range reviews and soft prior-year comparatives. Brico Dépôt France and
Poland also delivered solid performances in kitchen categories. The Group's
order book at the end of H1 was up by double digits versus prior year.
· Seasonal (23% of sales): High single-digit growth across our UK
banners, largely due to favourable weather conditions in Q1. B&Q saw
particularly strong performance in garden structures & leisure, greens,
and outdoor paint subcategories.
Section 2: Strategy update
Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better
world starts with better homes and we strive to help make that happen.
Our strategic plan - 'Powered by Kingfisher' - aims to maximise the benefits
of combining our distinct retail banners (which serve a range of different
customer needs) with the scale, strength and expertise of Kingfisher. We are
continuing to invest for growth in multiple areas of the business,
underscoring our confidence in the medium to longer-term outlook for home
improvement growth in our markets. The following section covers the progress
made in H1 against our strategic plan.
a) Develop our trade business
Trade customers tend to visit our stores more frequently and spend more than
the average retail customer. We are focused on developing our trade customer
proposition across our banners through the further roll-out of trade counters,
dedicated colleagues, specialised product ranges, new services and loyalty
programmes, and an enhanced omni-channel customer experience.
Progress in H1
We made significant progress in developing our trade business, leveraging our
existing store estate. Our ambition remains for more than £1bn of sales at
TradePoint in the UK & Ireland, double trade sales penetration in France
(vs our FY 24/25 level of c.5%) in the medium term and achieve trade sales
penetration of over 30% in Poland in the medium term. Total trade sales grew
by 11.9% year-on-year to £1.9 billion, representing 28.0% of Group sales
including Screwfix (H1 24/25: 25.3%). TradePoint sales rose 6.9% to £487
million, accounting for 22.4% of B&Q sales. In France, trade penetration
grew to 6.6% in H1 (H1 24/25: 4.7%). Castorama Poland grew trade penetration
to 25.2% in H1 (H1 24/25: 15.6%). Brico Dépôt Iberia drove trade penetration
to 17.6% (H1 24/25: 15.8%).
Stores
Our stores are central to our trade strategy as we leverage our existing store
estate. TradePoint expanded its physical presence to 222 stores, from 209
stores as at 31 January 2025 as it extends its reach into smaller stores,
targeting trade customers working in dense urban areas. Castorama France has
successfully rolled out its 'CastoPro' trade proposition across their estate
over the past 6 months. Castorama Poland launched two additional 'CastoPro'
zones in H1, bringing the total to 14 stores. These zones can include
dedicated parking, entrances and/or payment tills to better serve Trade
customers, with ongoing testing of the right products and services to meet
their needs.
Range and price
During the period, we expanded our trade-focused assortment with the addition
of new OEB and branded products. Erbauer powertools have landed well with
customers at TradePoint and Castorama Poland, while Flomasta plumbing ranges
continue to perform strongly at Screwfix. TradePoint also expanded its
'Direct-to-Site' offer to supply trade customers with the products they need
beyond our stocked range in-store, enabling it to convert more inbound sales
enquiries to orders. Brico Dépôt France now offers volume discounts on key
building materials, plumbing and electrical product ranges, increasing their
competitiveness with Builders merchants. Castorama Poland has added c.700
unique trade-specific SKUs. Brico Dépôt Iberia introduced new trade-specific
product ranges which has helped drive trade penetration.
People
We are dedicating more resources to trade across our banners. Dedicated
TradePoint sales partners have been recruited in 77 B&Q stores to date,
aiming to build more direct and personalised relationships with trade
customers. Results to date have been strong. B&Q stores with a trade sales
partner saw a c.4% increase in trade sales vs a control group. Castorama
France has grown dedicated trade colleagues to 80 with four trade sales
partners added in H1. Brico Dépôt France now has 131 dedicated trade
colleagues, including sales partners in 44 stores. Castorama Poland has
increased its focus on larger B2B customers with the addition of dedicated B2B
managers. Brico Dépôt Iberia added 22 trade sales partners (from nil last
year).
Services
We continue to test and implement value-add services for our trade customers,
including tool rental, waste management and trade finance. In tool rentals,
our partnership with SpeedyHire at B&Q, provides trade customers with
heavy machinery and tooling, delivered both instore and nationwide via our
digital platforms. Castorama Poland's CastoRent tool rental service provides
low-cost access and increases customer exposure to our Erbauer and MacAllister
OEBs. In financing solutions, Brico Dépôt France is now offering deferred
payment to the tradespeople.
Loyalty
We have grown our loyalty program offering in all markets. TradePoint saw
loyalty membership increase +13% YoY. Castorama France has rolled out its
loyalty offering across their estate over the past 6 months. Brico Dépôt
France has more than doubled its loyalty membership base YoY through targeted
marketing efforts and bulk purchase discounting. Castorama Poland launched
cashback solutions for loyalty members in H1, with the programme attracting
c.100k new sign-ups.
Digital
B&Q's TradePoint app has seen c.250k downloads since launch, enabling
trade customers to track spend and see their discount tier easily. The
Screwfix app offers personalised rewards, a visual search engine via "Lens",
streamlined collection via "Check-In," and rapid delivery through Screwfix
Sprint. The Castorama Poland trade app has seen c.170k downloads since launch.
Castorama Poland also added the full trade product range online making
shopping easier and faster for trade customers.
b) Accelerate e-commerce through speed and choice
We are committed to offering our customers 'speed' - faster fulfilment of
orders through leveraging our store estate - and 'choice' - broader product
choice, including via our e-commerce marketplace propositions. With over 1bn
customer visits each year across our e-commerce touchpoints, we are also
offering suppliers and vendors the opportunity to merchandise their products
through retail media.
Progress in H1
We have an ambition for e-commerce to reach 30% sales penetration, one third
of which comes from marketplace. Our e-commerce strategy delivered strong
results in the half. Total e-commerce sales grew 11.1% in constant currency to
£1.4 billion, representing 20% of Group sales (H1 24/25: 19%).
Leveraging our store estate to offer customers speed and convenience
We continue to evolve our digital proposition through marketplace, retail
media, apps, data and fulfilment capabilities. This supports a connected
digital ecosystem with the store at its core. The use of digital hubs within
our existing store estate enhances availability, speed and convenience for
customers. Click & collect (C&C) sales are up +6.4% YoY, accounting
for 62% of total e-commerce sales (H1 24/25: 64%) and 88% of 1P e-commerce
orders (H1 24/25: 87%). Home delivery sales were up 20% YoY, driven by the
growth of our marketplaces and the continued enhancement of our fulfilment
capabilities.
We strengthened our 1P offer through continued progress with the decomposition
of our legacy technology system, enabling more agile changes to be made to our
e-commerce platforms. This contributes to improved website speed and search
functionality. Our rapidly scaling marketplaces are driving traffic that
directly benefits our 1P proposition - for example, c.50% of B&Q's
marketplace customers are new to DIY.com, and subsequently, c.15% of these go
on to purchase a B&Q 1P product. Altogether these actions have driven
Group 1P e-commerce sales up +5.4%.
We've also prioritised app adoption, with analysis showing that app users
spend approximately 15% more and shop around 15% more frequently than non-app
customers. App sales now account for 34% of total e-commerce sales, supported
by the rollout of exclusive app-only features (such as Lens and SFX Sprint),
the scaling of the new Tradepoint app, and personalised, targeted promotions.
Screwfix Sprint sales grew by over 50%, with the service now available in 489
Screwfix stores nationwide, covering around 60% of the UK population. B&Q
is now committed to 15-minute Click & Collect, enhancing speed and
convenience for customers. Screwfix and B&Q expanded their partnership
with Deliveroo to offer home delivery services on an increasing number of
products from selected stores.
Offering our customers more choice on what they shop and how they shop
Marketplace GMV* increased 62% to £262m with marketplace participation* of
14.8% (H1 24/25: 10.1%). Marketplaces are now live in the UK, France, Poland,
Iberia and Turkey, with strong growth in vendors and SKUs. B&Q marketplace
penetration of e-commerce sales reached 46.8% (H1 24/25: 39.8%), Castorama
France reached 19.1% (H1 24/25: 1.2%), and Poland achieved 11.4% penetration
since launching at the start of the year. We have successfully unlocked the
on-boarding of cross-border merchants, with 69 cross-border merchants selling
on B&Q's marketplace. B&Q's marketplace accounted for 46.8% of its
e-commerce sales in H1 with the business piloting a UK first marketplace click
& collect service which aims to be in 300 stores by the end of October,
while Brico Dépôt Iberia reached 27.6% and Castorama France 19.1%. Castorama
Poland launched its marketplace in January this year and has already reached
11.4% e-commerce penetration.
Retail media
Our ambition is for retail media income to reach up to 3% of the Group's
e-commerce sales. We have continued to grow our retail media offering with
successful launches in Screwfix (both in-store and online) and Castorama
Poland and scaled our offerings in B&Q, Castorama France and Brico Dépôt
France. We successfully enabled more space for retail media campaigns on our
websites and our apps. We have also started to sell additional services to our
vendors. In H1 we developed and launched Core IQ, our Data Monetisation
platform, providing vendors with extra trading and digital performance
insights, launching first in Castorama France.
c) Grow by building on our different banners
Our retail banners occupy number one and two positions in our key markets,
each operating different models with clear positionings and plans to address a
diverse range of customer needs.
Progress in H1
B&Q opened nine stores in the half, eight of which were comprised of the
recently acquired Homebase stores. Newly opened stores are performing ahead of
expectations, driven by B&Q concept and ranges. B&Q closed two stores,
bringing the total stores in operation to 317 stores.
Screwfix extended its footprint by opening a net six stores in the UK &
Ireland, bringing the total to 958, including four new ultra-compact 'City'
stores that increase convenience for customers with their location in high
density areas.
Screwfix France is targeting up to five store openings in H2 with a primary
focus on building brand awareness in northern France and strengthening the
customer proposition through Screwfix Sprint, trade brands and trade-focused
campaigns. Current stores are performing in line with expectations.
Castorama France successfully opened its first two franchise stores in June
2025 and completed the transfer of one store to Brico Dépôt France.
Castorama Poland is targeting one store opening in H2, following five openings
last year. These openings form part of our longer-term ambition of up to 75
stores.
We exited Romania on the 2 May 2025, through disposal of our 100% interest in
the business.
Total sales were impacted by (0.4)% decline due to space changes, reflecting a
(1.1)% impact from the disposal of Romania and a +0.7% contribution from net
space growth in H1.
d) Build a data-led customer experience
Powered by Kingfisher's enhanced technology platforms and agile operating
model, our banners are leveraging data and artificial intelligence (AI) to
build customer-centric tools and solutions, thereby supporting better
commercial decision-making and higher productivity, and unlocking significant
new sources of sales, profit and cash.
Progress in H1
Top-line growth
Our AI-driven product recommendation and personalisation engines delivered
c.£80m of Group sales in H1 25/26, up 37%YoY. Castorama France extended the
use of Hello Casto, its AI chatbot. The Hello Casto virtual assistant aided
c.350k customers with their DIY related questions, helping more customers
complete their DIY project journeys. Our new visual search technology, Lens,
has been used to perform c.100k visual searches to help customers find
replacement parts faster, making shopping more convenient.
Strengthening margin
B&Q continues to leverage our AI-driven promotions, markdowns and
clearance solutions, with c.1k promotional events planned or delivered during
H1, resulting in improved sales, gross margin % and sell-through of stock. Our
AI-driven markdown tool has been rolled out to Castorama France in H1, with
first tests showing a c.15% reduction in markdown costs. The markdown tool is
planned to launch in H2 in Castorama Poland.
Streamlining operations
Our in-house developed supply chain visibility tool is now implemented in
B&Q, France and Poland, supporting reduced inventory levels and faster
replenishment cycles. We are also sharing comprehensive data with 45 OEB
vendors (representing c.16% of OEB sales) to allow collaborative planning,
resulting in substantial reductions in average lead-times and minimum order
quantities. We also implemented and scaled our AI-powered marketplace content
moderation services, automating the manual checking of marketplace product
listings which has accelerated the onboarding of new vendors.
e) Differentiate and win through own exclusive brands
We aim to grow our OEB sales further as we continue to provide simple and
innovative solutions to our customers at affordable prices, while also
focusing on reducing environmental impacts. A key priority is to improve the
visibility of our OEB, making them more prominent in-store and online to drive
customer awareness and support growth.
Progress in H1
OEB remained a key source of differentiation, accounting for £2.9 billion of
sales, representing 44% of Group sales (H1 24/25: 44%).
Innovation
Innovation remains at the core of our OEB strategy, and our product
development process is centred around making the completion of home
improvement tasks easier. In Q2, we launched the new Erbauer Gen 2
battery-powered power tool platform in B&Q and Castorama Poland. Featuring
enhanced functionality and greater flexibility, the platform allows customers
to mix and match tools and batteries to suit their needs.
Affordability
Our aim is to provide more affordable products for our customers with a target
of being 15-30% cheaper, on average, than branded alternatives. We achieve
this through strengthening our product ranges at the 'opening price points'
and lowest retail price quartiles and leveraging our scale in supplier
negotiations and sourcing. For example, in H1 we successfully launched our OPP
brand, Forge Steel hand tools range in Brico Depot France. Following the
successful launch in Brico Dépôt France, our entry-price kitchen range,
Pragma, is now available in Castorama Poland, Brico Dépôt Iberia and
Screwfix.
We launched the Ashmead kitchen range at B&Q, Castorama France and Poland
providing customers an additional style option in the first price quartile.
Since its launch in H2 24/25, Ashmead has led performance, with c.660K units
sold. The range is set to roll out to Brico Dépôt France in 2026.
Sustainability
We remain committed to helping our customers reduce their impact on the
environment by embedding environmental considerations at the core of our OEB
proposition. We are on-track to deliver 70% of OEB sales from SHP with over
20,000 SKUs labelled with our "green star" marker, making it easier for
customers to navigate and shop for products with a lower impact on the
environment.
f) Roll out compact store formats
Compact stores play a crucial role in addressing the consumer need for
convenience, and enable us to further meet demand for fast fulfilment, whether
through C&C or delivery.
Progress in H1
We have continued our testing of compact store formats, which allow us to
serve customers in more convenient locations and support fast fulfilment. We
have tests across the UK, France and Poland, including high-street stores
under the 'B&Q Local', 'Casto' and 'Express' banners, and retail park
stores such as Castorama Smart, and Brico Dépôt compact formats.
These formats are generating valuable learnings in sales densities, click
& collect participation, range and services adaptation for local market,
attracting new customer types and understanding what makes a successful
location.
Our Screwfix City stores continue to trade ahead of our expectations as our
convenient locations better target repairs and maintenance professionals
servicing high density residential areas. We now have 30 Screwfix City stores
open across the UK.
g) Lead the industry in Responsible Business and energy efficiency
We are committed to leading our industry in responsible business practices and
energy efficiency. Our 'Powered by Kingfisher' strategy sets out four priority
areas for Responsible Business where we can maximise our positive impact on
the lives of our customers, colleagues, communities, and the planet.
Progress in H1
We continue to progress against delivering our Responsible Business
priorities.
Planet
We have further reduced Scope 1 and 2 emissions (vs FY 16/17), through
increased use of alternative fuels highlighted by B&Q's transition to
alternative low carbon fuels for 100% of its logistics fleets, EV adoption,
and energy efficiency measures deployed in our stores.
We reduced Scope 3 emissions intensity (vs FY 17/18), supported by sustainable
product innovation and supplier engagement. We will continue to support
industry-wide initiatives, such as the EDRA/GHIN Make it Zero Initiative, to
drive collective progress. We have set ambitious new decarbonisation targets
with our suppliers.
Customers
We have introduced new ranges, including recycled plastic plant pots and home
furnishings, expanding supplier engagement in adopting SHP criteria, and
advanced lower-carbon material sourcing. SHPs now represent 56% of Group sales
and 68% of OEB sales as we embed sustainability into all aspects of product
design to meet customer demands for greener products.
Circularity remains a key focus as we continue to integrate features that
enhance durability and extend the lifecycle of our products. Screwfix has
expanded its product refurbishment operation, in partnership with iForce, to
cover appliances, higher value non-electrical products and water-using
products. Castorama Poland expanded its tool rental service 'CastoRent'
contributing to lower-carbon emissions, reduced electronic waste and builds
customer awareness of our OEB ranges.
Colleagues
Employee engagement remained high as we continue to work to create a fair and
inclusive culture. We maintained our rank in the Top 5 percentile of Peakon's
all industry benchmark. We are working to improve gender diversity in our
workforce with targeted development programmes at the Group and banner levels.
Currently, there are 31.8% women in senior leadership and 40.3% in management
roles.
Communities
We continue to strive for better homes for everyone in our communities. We
exceeded our FY 25/26 target of reaching two million people whose housing
needs are greatest, through our charitable partnerships and banner
Foundations. Since FY 16/17 we have reached over four million people and
charitably supported more than 1,000 organisations through our seven banner
Foundations.
For more information on our Responsible Business strategy, performance and
priorities, please read our FY 24/25 Responsible Business Report available
here
(https://www.kingfisher.com/~/media/Files/K/Kingfisher-Plc/Universal/documents/responsible-business/RB-Report/2025/Kingfisher-plc-Responsible-Business-Report-2024-25.pdf)
h) Agile and lean
We have adopted a culture of speed and agility, given the rapidly changing
environment in which we do business. We continue to focus on becoming a leaner
and more productive business, while aiming to structurally reduce our cost
base and lower our same-store net inventory*.
Progress in H1
We communicated at the start of the year that we expect to face c.£145m of
additional costs relating to operating cost inflation (including higher pay
rates), higher UK employer national insurance contributions, similar taxes in
France and the impact of the new packaging fees in the UK. We continue to
expect to fully mitigate these additional costs through a combination of gross
margin and cost initiatives.
Agile
We continue to enhance our technology capability through both strategic
partnerships with leading cloud providers, including Google, Amazon Web
Services and Microsoft Azure, and our own in-house expertise in engineering
& data science. This multi-cloud approach allows us to implement the most
appropriate and best-in-class solutions across our operations, to enhance
speed, performance and resilience of our technology systems.
Lean - cost reduction and productivity
We continue to make strong progress in lowering our structural cost base
across multiple areas of the business. We unlocked additional logistics costs
savings through our continuous efforts to optimise transport and warehouse
operations, benefiting from a c.5% YoY reduction of distribution centre space
in France. Where feasible, we flexed our store operating hours, resulting in
additional store staff cost savings. We continue to drive in-store
productivity through investment in self-checkouts. We also continue to
optimise our c.£2.3bn GNFR* spend through 300+ cost reduction and
productivity projects. The Group completed 96 lease renewals and
renegotiations, with an average net rent reduction of c.11%, alongside
improved lease terms.
Lean - inventories
Structurally reducing our inventory levels and improving inventory turn is a
key priority over the medium term. We are doing this by leveraging real time
data to improve our planning and forecasting, optimising our replenishment
systems (e.g., re-adjusting for shorter supplier lead-times), and developing
stronger ranging principles. We reduced net inventory (excluding Romania) by
£60m YoY to £2,854m, equivalent to a net inventory days reduction of 6 days
YoY driven by strategic reduction initiatives including leveraging our data to
improve our planning, forecasting and buying cycles, a reduction in seasonal
stock, product cost price deflation and improved stock health. Our supply
chain visibility tool (SVT) enabled better data sharing for select vendors to
drive improved forecasting. We improved core product availability despite
strong seasonal demand.
Section 3: Financial review
A summary of the reported financial results for the six months ended 31 July
2025 is set out below. To be read in conjunction with the condensed financial
statements included in Section 6 of this announcement.
Financial summary % Total Change % Total Change % LFL Change
2025/26 2024/25 Reported Constant currency Constant currency
Sales £6,811m £6,756m +0.8% +0.9% +1.3%
Gross profit £2,569m £2,480m +3.6% +3.6%
Gross margin % 37.7% 36.7% +100bps +100bps
Operating profit £383m £374m +2.1%
Statutory pre-tax profit (PBT) £338m £324m +4.1%
Statutory post-tax profit £237m £237m (0.3)%
Statutory basic EPS 13.4p 12.8p +4.1%
Net cash flows from operating activities £928m £810m +14.6%
Interim dividend per share 3.80p 3.80p -
Adjusted metrics
Retail profit £452m £420m +7.5% +7.1%
Retail profit margin % 6.6% 6.2% +40bps +40bps
Adjusted pre-tax profit (PBT) £368m £334m +10.2% +9.2%
Adjusted pre-tax profit margin %* 5.4% 4.9% +50bps
Adjusted post-tax profit* £271m £243m +11.5%
Adjusted basic EPS 15.3p 13.2p +16.5%
Free cash flow £478m £421m +13.5%
Net debt((1)) £(1,726)m £(1,952)m n/a
( )
((1)) Includes £2,255m of lease liabilities (H1 24/25: £2,324m), including
£2m of lease liabilities held for sale (H1 24/25: £nil).
Total sales increased by +0.9% on a constant currency basis, to £6,811m.
Excluding Romania the Group's total sales increased by +2.0%. Underlying core
category sales (excluding calendar and leap year impacts) have shown
sequential improvement, supported by ongoing repairs, maintenance, and
existing home renovation activity. There was continued momentum in
'big-ticket' categories, marking the third consecutive quarter of underlying
growth, with new kitchen ranges resonating well with customers. Strong
performance in seasonal categories, particularly in the UK, which benefited
from favourable weather conditions. On a constant currency basis, UK &
Ireland and Iberia achieved YoY sales growth. Sales in France and Poland
declined against a subdued consumer backdrop but have shown sequential
improvement each quarter. On a reported basis, which includes the impact of
exchange rates, total sales increased by +0.8%.
LFL sales of +1.3% excludes a (1.1)% impact from the disposal of Romania and a
+0.7% contribution from net space growth. Underlying LFL sales performance
(excluding calendar and leap year impacts) was +1.9%.
Space growth was driven by the conversion of acquired Homebase stores at
B&Q, new Screwfix openings in the UK, and prior year expansion at
Castorama Poland. During H1, 18 new stores were opened - nine at Screwfix in
the UK and nine at B&Q (six in the UK and three in Ireland). Five UK
stores were closed (two B&Q and three Screwfix), and two Castorama France
stores were transferred to franchise operations. Additionally, the Castorama
store transferred to Brico Dépôt last year was successfully reopened under
Brico Dépôt in H1.
A reconciliation from LFL sales to total sales is set out below:
2025/26 2024/25 Increase/ (decrease)
£m £m
LFL sales (constant currency) 6,709 6,622 +1.3%
Non-LFL sales 102 128 n/a
Total sales (constant currency) 6,811 6,750 +0.9%
Impact of exchange rates - 6 n/a
Total sales (reported rates) 6,811 6,756 +0.8%
Gross margin % increased by 100 basis points to 37.7%, driven by multiple
levers, including leveraging Kingfisher's buying and sourcing scale, margin
accretive growth from marketplaces and retail media, improved inventory
management and reduced write downs, and improved returns on promotional
activity through the use of AI solutions. Group gross profit was up by +3.6%
in constant currency.
Operating costs increased by 2.9% on a constant currency basis. Excluding
prior year business rates refunds at B&Q, operating costs increased by
1.7%, primarily due to new store openings, higher staff pay rates, and
increased employer national insurance contributions in the UK and similar
taxes in France. These increases were partly offset by structural savings
delivered through our cost reduction programme along with targeted actions in
France and Poland to flex staffing and discretionary spend in response to
lower sales.
In constant currency, retail profit increased by 7.1% to £452m, reflecting
higher profits/reduced losses in all regions - this is despite the prior half
year benefitting from a £24m business rates refunds in B&Q. On a reported
basis, retail profit increased by 7.5%. The Group's retail profit margin
increased by 40 basis points on a constant currency basis to 6.6% (H1 24/25:
6.2%, at reported rates).
Adjusted pre-tax profit increased by +10.2% to £368m on a reported rate basis
(H1 24/25: £334m), reflecting higher retail profit and lower net finance
costs, partially offset by higher central costs. Adjusted pre-tax profit
margin was up by 50bps to 5.4% (H1 24/25: 4.9%).
Statutory pre-tax profit increased by +4.1% to £338m (H1 24/25: £324m). This
reflects higher operating profit, partially offset by higher adjusting items
YoY (see adjusting items below).
A reconciliation from the adjusted basis to the statutory basis for pre-tax
profit is set out below:
2025/26 2024/25 Increase/ (decrease)
£m £m
Retail profit (constant currency) 452 421 +7.1%
Impact of exchange rates - (1) n/a
Retail profit (reported) 452 420 +7.5%
Central costs (36) (29) (23.4)%
Share of interest and tax of joint ventures & associates (3) (7) n/a
Net finance costs (45) (50) +10.9%
Adjusted pre-tax profit 368 334 +10.2%
Adjusting items before tax (30) (10) n/a
Statutory pre-tax profit 338 324 +4.1%
Net finance costs of £45m (H1 24/25: £50m) consist principally of interest
on lease liabilities.
Adjusting items before tax were a total charge of £30m (H1 24/25: charge of
£10m), primarily driven by the disposal of Romania. Please see note 5 in the
condensed financial statements included in Section 6.
Taxation
The Group's adjusted effective tax rate (ETR) is sensitive to the blend of tax
rates and profits in the Group's various jurisdictions. It is higher than the
UK statutory rate because of the amount of Group profit that is earned in
higher tax jurisdictions, and because no future benefit is assumed for losses
incurred in certain overseas territories. The adjusted ETR, calculated on
profit before adjusting items, prior year tax adjustments, one-off items, and
the impact of future rate changes, is 26% (H1 24/25: 27%). The adjusted ETR is
lower than the prior year rate primarily due to limited losses recorded in
Brico Dépôt Romania, following the Group's divestment of the business on 2
May 2025.
The statutory effective tax rate includes the impact of adjusting items
(including prior year tax items). The impact of this result is a statutory
effective tax rate of 30%.
Pre-tax profit Pre-tax profit
£m Tax 2025/26 £m Tax 2024/25
£m % £m %
Adjusted effective tax rate 368 (97) 26% 334 (91) 27%
Adjusting items (30) (4) (10) 4
Statutory effective tax rate 338 (101) 30% 324 (87) 27%
In FY 21/22, Kingfisher paid £64m (including interest) to HM Revenue &
Customs (HMRC) in relation to the European Commission's 2019 state aid
decision concerning the UK's controlled foreign company tax rules. In
September 2024, the European Court of Justice annulled this decision, and, in
March 2025, HMRC repaid the £64m tax and interest previously assessed, plus
an additional £5m of repayment interest. The £64m has been reflected in
"other tax authority receipt" in the cashflow statement and does not form part
of free cash flow.
Adjusted basic earnings per share increased by 16.5% to 15.3p (H1 24/25:
13.2p), which excludes the impact of adjusting items. Basic earnings per share
increased by 4.1% to 13.4p (H1 24/25: 12.8p). Please refer to note 8 of the
condensed financial statements in Section 6 for more detail.
Dividends
The Board has declared an interim dividend per share of 3.80p (FY 24/25
interim dividend: 3.80p). The interim dividend will be paid on 14 November
2025 to shareholders on the register at close of business on 10 October 2025.
A dividend reinvestment plan (DRIP) is available to shareholders who would
prefer to invest their dividends in the Company's shares. The shares will go
ex-dividend on 9 October 2025. The last date for receipt of DRIP elections is
24 October 2025. For further details on our dividend please refer to our FY
24/25 results release found here
(https://www.kingfisher.com/~/media/Files/K/Kingfisher-Plc/Universal/investors/result-reports-presentation/2025/20250325-2024-25-full-year-results-rns-part-1-vf.pdf)
.
Management of balance sheet and liquidity risk and financing
Management of cash and debt facilities
Kingfisher regularly reviews the level of cash and debt facilities required to
fund its activities. This involves preparing a prudent cash flow forecast for
the medium term, determining the level of debt facilities required to fund the
business, planning for repayment or refinancing of debt, and identifying an
appropriate amount of headroom to provide a reserve against unexpected
outflows and/or impacts to cash inflows. To retain financial flexibility, we
aim to maintain strong liquidity headroom (including cash and cash
equivalents, short term deposits and committed debt facilities), which is
currently set at a minimum of £800m.
Net debt to adjusted EBITDA
As of 31 July 2025, the Group had £1,726m (FY 24/25: £2,015m) of net debt on
its balance sheet. Net debt includes £2,255m (FY 24/25: £2,253m) of total
lease liabilities, including £2m of lease liabilities held for sale (FY
24/25: £42m).
The ratio of the Group's net debt to adjusted EBITDA (on a last twelve months'
basis) was 1.3 times as of 31 July 2025 (1.6 times as of 31 January 2025). At
this level, the Group has financial flexibility while retaining an efficient
cost of capital. The Group's maximum net debt to adjusted EBITDA is 2.0 times
over the medium term. Please refer to 'Key strategic priorities and
medium-term financial and capital allocation priorities' in Section 2 of our
FY 24/25 results release found here
(https://www.kingfisher.com/~/media/Files/K/Kingfisher-Plc/Universal/investors/result-reports-presentation/2025/20250325-2024-25-full-year-results-rns-part-1-vf.pdf)
for more details.
Net debt to adjusted EBITDA is set out below:
2025/26 2024/25
Moving annual total Year-end
£m £m
Retail profit 728 696
Central costs (69) (62)
Depreciation and amortisation 654 656
Adjusted EBITDA 1,313 1,290
Net debt 1,726 2,015
Net debt to adjusted EBITDA 1.3 1.6
Credit ratings
Kingfisher holds a BBB credit rating with Fitch and a BBB rating with Standard
and Poor's. The Outlook is Stable across both agencies.
Revolving credit facility
In May 2024 the Group entered into a new £650m Revolving Credit Facility
(RCF) agreement with a group of its relationship banks, linked to
sustainability targets. In May 2025 the credit facility was extended by one
year and now expires in May 2028. As of 31 July 2025, this RCF was undrawn.
Term loans
The Group's two term loans were refinanced in H1 25/26 with £50m now maturing
in June 2027 and £50m now maturing in January 2028, with the latter linked to
the Group's sustainability targets.
Covenants
The terms of the committed RCF and both term loans require that the ratio of
Group operating profit (excluding adjusting items) to net interest payable
(excluding interest on lease liabilities) must be no less than 3:1 for the
preceding 12 months as at the half and full year-ends. As of 31 July 2025,
Kingfisher was compliant with this requirement.
Total liquidity
As of 31 July 2025, the Group had access to c.£1.3bn in total liquidity,
including cash and cash equivalents of £399m (net of bank overdrafts), short
term deposits of £227m and access to an undrawn £650m revolving credit
facility (RCF), due to expire in May 2028.
Free cash flow
A reconciliation of free cash flow is set out below:
2025/26 2024/25
£m £m
Operating profit 383 374
Adjusting items 30 10
Operating profit (before adjusting items) 413 384
Other non-cash items((1)) 355 363
Change in working capital 100 128
Pensions and provisions (1) (1)
Net rent paid (261) (260)
Net interest received 15 8
Tax received/(paid) 2 (48)
Gross capital expenditure (145) (153)
Free cash flow 478 421
Ordinary dividends paid (152) (159)
Share buybacks (119) (92)
Share purchase for employee incentive schemes (25) (26)
Disposal of NeedHelp - (3)
Disposal of Romania 33 -
Other tax authority receipt((2)) 64 -
Disposal of assets and other((3)) (2) (15)
Net cash flow* 277 126
Opening net debt (2,015) (2,116)
Lease liabilities disposed 38 -
Movements in lease liabilities (23) 37
Other movement including foreign exchange (3) 1
Closing net debt (1,726) (1,952)
((1)) Includes depreciation and amortisation, share-based compensation charge
and pension operating cost.
((2)) Refund received in relation to the EC state aid challenge (refer to
Taxation section above for further details).
((3)) Includes adjusting cash flow items (principally comprising restructuring
costs), partially offset by proceeds from the issue of new shares and the
disposal of assets.
Operating profit (before adjusting items) was £29m higher than last year,
reflecting higher retail profit partially offset by higher central costs. The
working capital inflow of £100m was largely driven by an increase in payables
of £263m, reflecting normal buying seasonality. Net inventory increased by
£96m, largely reflecting the seasonality of stock levels at half year versus
year-end. Receivables increased by £67m, driven in part by increase in trade
credit sales, supplier rebates and prepayments related to tech contracts.
Net tax paid was £50m lower than last year, predominantly reflecting receipts
of refunds relating to settlements of prior years.
Gross capital expenditure was £145m, decreasing by £8m (H1 24/25: £153m).
Of this expenditure, 30% was invested in refreshing, maintaining and adapting
existing stores (including renewable energy initiatives), 13% on new stores,
40% on technology and digital development, 4% on range reviews and 13% on
other areas including supply chain investment.
Overall, free cash flow for H1 was £478m (H1 24/25: £421m). Net debt as of
31 July 2025 (including lease liabilities) was £1,726m (H1 24/25: £1,952m).
A reconciliation of net cash flows from operating activities to free cash flow
and net cash flow, and to the statutory net movement in cash and cash
equivalents and bank overdrafts, is set out below:
2025/26 2024/25
£m £m
Net cash flows from operating activities 928 810
Net lease rent paid (261) (260)
Net interest received 15 8
Gross capital expenditure (145) (153)
Other tax authority receipt((1)) (64) -
Operating cash flows relating to adjusting items((2)) 5 16
Free cash flow 478 421
Ordinary dividends paid (152) (159)
Share buybacks (119) (92)
Share purchase for employee incentive schemes (25) (26)
Other tax authority receipt((1)) 64 -
Disposal of Romania 33 -
Disposal of NeedHelp - (3)
Disposal of assets and other((3)) (2) (15)
Net cash flow 277 126
Increase in short-term deposits (227) -
Arrangement fees paid (1) (2)
Net increase in cash and cash equivalents 49 124
and bank overdrafts
((1)) Refund received in relation to the EC state aid challenge (refer to
Taxation section above for further details).
((2)) Includes cash flows relating to adjusting items, principally comprising
restructuring costs.
((3)) Includes adjusting cash flow items (principally comprising restructuring
costs), partially offset by proceeds from the issue of new shares and the
disposal of assets.
Pensions
As of 31 July 2025, the Group had a net surplus of £83m (H1 24/25: £100m net
surplus, FY 24/25: £101m net surplus) in relation to defined benefit pension
arrangements, of which a £192m surplus (£202m surplus as of 31 January 2025)
was in relation to the UK scheme. The net surplus has reduced by £18m in the
period, principally due to asset losses, partially offset by reduced
liabilities due to a higher discount rate. As part of the funding valuation
exercise completed in FY 22/23, the Trustee and Kingfisher agreed to cease
annual employer contributions from August 2022 to July 2025. The Company
monitors the scheme funding level on a regular basis and will reassess with
the scheme Trustee the appropriate level of contributions at future
valuations. Please refer to note 11 of the condensed financial statements in
Section 6.
Risks
The Group's principal risks and uncertainties have been reviewed as part of
our half year procedures. There are no additions or removals since the FY
24/25 year-end.
Further details of the Group risks and risk management process can be found on
pages 60 to 65 of the 2024/25 Annual Report and Accounts.
Section 4: 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 six months ended 31 July 2025. 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) (or, otherwise under any other law, regulation or exchange rules in
any other applicable jurisdiction).
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", forecast, or "believe"
(or the negatives thereof) or other variations thereon or comparable
terminology. These forward-looking statements are based on currently available
information and our current assumptions, expectations and projections about
future events. These forward-looking statements include all matters that are
not historical facts and include statements which look forward in time or
statements regarding the Company's intentions, beliefs or current expectations
and those of our Officers, Directors and employees concerning, amongst other
things, the Company's results of operations, financial condition, changes in
global or regional trade conditions (including a downturn in the retail or
financial services industries), competitive influences, changes in tax rates,
exchange rates or interest rates, changes to customer preferences, the state
of the housing and home improvement markets, share repurchases and dividends,
capital expenditure and capital allocation, liquidity, prospects, growth and
strategies, litigation or other proceedings to which we are subject, acts of
war or terrorism worldwide, work stoppages, slowdowns or strikes, public
health crises, outbreaks of contagious disease, environmental disruption or
political volatility. By their nature, forward-looking statements are not
guarantees of future performance and are subject to future events, risks and
uncertainties - many of which are beyond our control, dependent on actions of
third-parties, or currently unknown to us - as well as potentially inaccurate
assumptions that could cause actual events or results or actual performance of
the Group to differ materially from those reflected or contemplated in such
forward-looking statements. For further information regarding risks to
Kingfisher's business, please consult the risk management section of the
Company's Annual Report (as published). No representation, warranty or other
assurance is made as to the achievement or reasonableness of, and no reliance
should be placed on, such forward-looking statements.
This interim management report has been prepared solely to provide additional
information to shareholders to assess the Group's strategies and the potential
for those strategies to succeed. It should not be relied upon by any other
party or for any other purpose. The forward-looking statements contained in
this announcement are made in good faith based on information available to the
Directors at the time of approval. However, such statements should be treated
with caution due to the inherent uncertainties - both economic and
business-related - underlying any forward-looking information. This report has
been prepared for the Group as a whole and therefore places greater emphasis
on matters significant to Kingfisher plc and its subsidiary undertakings when
viewed on a consolidated basis.
The forward-looking statements contained in this announcement speak only as of
the date of this announcement and the Company does not undertake any
obligation to update or revise any forward-looking statement to reflect any
new information, change in circumstances, or change in the Company's
expectations to reflect events or circumstances after the date of this
announcement or to reflect the occurrence of unanticipated events.
Section 5: Market update and technical guidance
Update and progress against market outlook for FY 25/26
At the start of this year, to support our planning for FY 25/26, we assessed
various scenarios for the growth of our total addressable home improvement
markets in the UK & Ireland, France and Poland in 2025, compared to 2024.
The "high case" and "low case" scenarios were as noted below, in constant
currency and including expected market space growth:
Our expectation of total addressable
home improvement market % change in 2025 (YoY)
Low case High case
UK & Ireland Flat Low single digit growth
France Low-to-mid-single digit decline Flat
Poland Low single digit decline Low single digit growth
The spread between the high and low cases in each of the markets above is c.3
to 4%pts.
In the UK & Ireland, our outlook for the home improvement market in 2025
was flat to low-single digit % growth YoY. So far this year, we have observed
a resilient consumer, with improving mortgage affordability, real wage growth,
and stable housing transactions in H1. The home improvement market has also
been supported by favourable weather conditions. Overall, we believe the UK
& Ireland home improvement market in 2025 is currently towards the middle
of our scenarios. We remain mindful of early signs of softness in the labour
market, uncertainty surrounding the Autumn Budget, and rising inflation.
In France, our outlook for the home improvement market in 2025 was
low-to-mid-single digit decline to flat YoY. We saw continued subdued consumer
sentiment, despite lower interest rates, higher mortgage lending and increased
housing starts in H1. This supports our view that the market is currently
tracking between the lower end and middle of the range of our scenarios.
French consumer sentiment remains subdued amidst an uncertain political
environment.
In Poland, our outlook for the home improvement market in 2025 was low-single
digit % decline to low-single digit % growth YoY. As expected, political
factors, and elevated inflation and interest rates weighed on consumer demand
in H1 with the market tracking towards the middle of our scenarios. There are
signs of recovery, with falling inflation, real wage growth, interest rate
cuts and improvement in consumer confidence.
Guidance for FY 25/26
Against the backdrop described above, our focus remains on growing ahead of
our markets by leveraging our key strategic priorities. We continue to be
strongly focused on effectively managing our product costs and retail prices,
as demonstrated in H1.
In line with our guidance, we are fully on track to offset the c.£145m of
additional costs (relating to operating cost inflation, higher UK employer
national insurance contributions and similar taxes in France and new packaging
fees regulations in the UK) through gross margin and operating cost
initiatives.
Our expectations for our markets for the year remain consistent with what we
outlined in March, whilst mindful of mixed consumer sentiment and political
uncertainty. Combined with our strong H1 performance, this gives us the
confidence to upgrade both our full year profit and free cash flow guidance.
We now expect to deliver FY 25/26 adjusted PBT at the upper end of the
previously guided range of approximately £480m to £540m. This reflects our
strong profit performance in the first half, alongside second half weighted
investment in marketing and technology to support our strategic growth
initiatives.
We have also raised our FY 25/26 free cash flow guidance range to c.£480m to
£520m, up from the previous range of £420m to £480m. This upgrade is driven
by the uplift in adjusted PBT expectation, continued progress in reducing net
inventory, and a second half weighted capital expenditure profile as we invest
in enhancing the customer experience across both in-store and online channels
to support long-term growth.
Technical Guidance
FY 25/26 income statement
· Space:
- Sales impact of c.+1% from net space growth excluding Romania,
mainly from Screwfix UK & Ireland and Castorama Poland (FY 24/25: +0.9%)
- Sales impact of c.-2% from the sale of Romania (previously c.-1%)
which was completed ahead of our expectations.
· B&Q business rates: Reminder of one-off benefit in FY 24/25 of
£33m related to business rates refunds at B&Q (H1 £24m)
· Sale of Romania: YoY benefit of c.£10m to Group retail profit
· Higher wages, taxes and inflation: c.£145m((2)), which we expect
to fully offset through gross margin and operating cost mitigations
· Net finance costs: Anticipate c.£100m (FY 24/25: £100m)
· Group adjusted effective tax rate*: c.26% (FY 24/25: 28%)((4))
FY 25/26 cash flow
· Capital expenditure: c.£350m (FY 24/25: £317m)
· Share buybacks: The £300m share buyback programme announced in
March 2025 to be complete by end of March 2026, plus c.£26m repurchased in FY
25/26 related to the previous £300m programme
((1)) Leap year comparative impact reflects the impact of an extra day of
trading on Thursday 29 February 2024. The estimated impact of the leap year on
Q1 24/25 LFL sales was +1.1%. Calendar impact represents the impact of the
annual calendar shift on LFL sales growth due to different days of the week
falling into or out of the current period compared to the prior period. For
example, historically, higher trading is seen on a Friday and Saturday as
compared to a Sunday. It also includes the impact of national public holidays
falling on different days of the week compared to the prior period.
((2)) Includes: (i) operating cost inflation of c.£90m, including higher pay
rates across the Group, (ii) higher employers' National Insurance
Contributions (NICs) in the UK, and social taxes in France (equivalent to NICs
in the UK), of c.£45m, and (iii) the impact of the UK government's packaging
fees regulations (the Extended Producer Responsibility (EPR) scheme) of
c.£10m.
((3)) Guidance assumes current exchange rates.
((4)) Subject to the blend of profit within the Group's various jurisdictions.
The Group's medium-term financial priorities and capital allocation priorities
are unchanged. Please refer to our FY 24/25 results release found here
(https://www.kingfisher.com/~/media/Files/K/Kingfisher-Plc/Universal/investors/result-reports-presentation/2025/20250325-2024-25-full-year-results-rns-part-1-vf.pdf)
for more details
Section 6: 2025/26 interim condensed financial statements (unaudited)
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED INCOME STATEMENT
Half year ended 31 July 2025 Half year ended 31 July 2024
£ millions Notes Before adjusting items Adjusting items (note 5) Total Before adjusting items Adjusting items (note 5) Total
Sales 4 6,811 - 6,811 6,756 - 6,756
Cost of sales (4,242) - (4,242) (4,276) - (4,276)
Gross profit 2,569 - 2,569 2,480 - 2,480
Selling and distribution expenses (1,620) - (1,620) (1,583) (9) (1,592)
Administrative expenses (538) - (538) (510) 2 (508)
Other income 11 - 11 10 - 10
Other expense - (30) (30) - (3) (3)
Share of post-tax results of joint ventures and associates (9) - (9) (13) - (13)
Operating profit 4 413 (30) 383 384 (10) 374
Finance costs (62) - (62) (67) - (67)
Finance income 17 - 17 17 - 17
Net finance costs 6 (45) - (45) (50) - (50)
Profit before taxation 368 (30) 338 334 (10) 324
Income tax expense 7 (97) (4) (101) (91) 4 (87)
Profit for the period 271 (34) 237 243 (6) 237
Earnings per share 8
Basic 13.4 12.8p
Diluted 13.2 12.6p
Adjusted basic 15.3 13.2p
Adjusted diluted 15.1 13.0p
The proposed interim ordinary dividend for the period ended 31 July 2025 is
3.80p per share (2024/25: 3.80p per share).
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
£ millions Half year ended Half year ended
31 July 2025 31 July 2024
Notes
Profit for the period 237 237
Remeasurements of post-employment benefits 11 (11) 1
Inventory cash flow hedges - fair value losses (48) (6)
Tax on items that will not be reclassified 7 16 34
Total items that will not be reclassified (43) 29
subsequently to profit or loss
Currency translation differences
Subsidiaries 74 (28)
Joint ventures and associates (1) 2
Transferred to income statement 17 14 -
Total items that may be reclassified subsequently to profit or loss 87 (26)
Other comprehensive income for the period 44 3
Total comprehensive income for the period 281 240
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Half year ended 31 July 2025
Share capital Own shares held Capital Other Total equity
£ millions (note 13) Share Retained earnings redemption reserves
premium reserve (note 14)
At 1 February 2025 282 2,228 (34) 3,475 94 299 6,344
Profit for the period - - - 237 - - 237
Other comprehensive (expense)/income for the period - - - (7) - 51 44
Total comprehensive income for the period - - - 230 - 51 281
Inventory cash flow hedges - losses transferred to inventories - - - - - 17 17
Share-based compensation - - - 12 - - 12
New shares issued under share schemes - - - 1 - - 1
Own shares issued under share schemes - - 13 (13) - - -
Purchase of own shares for cancellation (7) - - (100) 7 - (100)
Purchase of own shares for ESOP trust - - (25) - - - (25)
Dividends - - - (152) - - (152)
Tax on equity items - - - - - (6) (6)
At 31 July 2025 275 2,228 (46) 3,453 101 361 6,372
Half year ended 31 July 2024
Share capital (note 13) Own shares held Capital Other Total equity
£ millions Share Retained earnings redemption reserves
premium reserve (note 14)
At 1 February 2024 294 2,228 (31) 3,741 82 290 6,604
Profit for the period - - - 237 - - 237
Other comprehensive income/(expense) for the period - - - 34 - (31) 3
Total comprehensive income/(expense) for the period - - - 271 - (31) 240
Inventory cash flow hedges - losses transferred to inventories - - - - - 15 15
Share-based compensation - - - 12 - - 12
New shares issued under share schemes - - - 1 - - 1
Own shares issued under share schemes - - 11 (11) - - -
Purchase of own shares for cancellation (5) - - (100) 5 - (100)
Purchase of own shares for ESOP trust - - (26) - - - (26)
Dividends - - - (159) - - (159)
Tax on equity items - - - - - (3) (3)
At 31 July 2024 289 2,228 (46) 3,755 87 271 6,584
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED BALANCE SHEET
£ millions Notes At 31 July 2025 At 31 July 2024 At 31 January 2025
Non-current assets
Goodwill 2,312 2,397 2,312
Other intangible assets 10 287 338 312
Property, plant and equipment 10 3,137 3,171 3,105
Investment property 10 33 30 34
Right-of-use assets 1,848 1,871 1,771
Investments in joint ventures and associates 19 8 29
Post-employment benefits 11 192 216 202
Deferred tax assets 13 8 7
Other tax authority asset 18 - 70 -
Derivative assets 12 1 - 2
Other receivables 10 15 11
7,852 8,124 7,785
Current assets
Inventories 2,854 2,979 2,719
Trade and other receivables 346 385 276
Derivative assets 12 10 3 22
Current tax assets 13 54 78
Other tax authority asset 18 - - 69
Short-term deposits 227 - -
Cash and cash equivalents 413 485 336
Assets held for sale 6 - 158
3,869 3,906 3,658
Total assets 11,721 12,030 11,443
Current liabilities
Trade and other payables (2,595) (2,653) (2,355)
Borrowings 12 (14) (63) (108)
Lease liabilities (360) (356) (345)
Derivative liabilities 12 (21) (15) (5)
Current tax liabilities (29) (16) (6)
Provisions (13) (8) (16)
Liabilities directly associated with assets held for sale (2) - (92)
(3,034) (3,111) (2,927)
Non-current liabilities
Other payables (2) (4) (2)
Borrowings 12 (100) (50) (1)
Lease liabilities (1,893) (1,968) (1,866)
Derivative liabilities 12 (1) (1) -
Deferred tax liabilities (204) (190) (193)
Provisions (6) (6) (9)
Post-employment benefits 11 (109) (116) (101)
(2,315) (2,335) (2,172)
Total liabilities (5,349) (5,446) (5,099)
Net assets 6,372 6,584 6,344
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED BALANCE SHEET (CONTINUED)
£ millions Notes At 31 July 2025 At 31 July 2024 At 31 January 2025
Equity
Share capital 13 275 289 282
Share premium 2,228 2,228 2,228
Own shares held in ESOP trust (46) (46) (34)
Retained earnings 3,453 3,755 3,475
Capital redemption reserve 101 87 94
Other reserves 14 361 271 299
Total equity 6,372 6,584 6,344
The interim financial report was approved by the Board of Directors on 22
September 2025 and signed on its behalf by:
Thierry Garnier, Chief Executive Officer Bhavesh Mistry, Chief Financial Officer
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED CASH FLOW STATEMENT
£ millions Notes Half year ended Half year ended
31 July 2025 31 July 2024
Operating activities
Cash generated by operations 15 862 858
Income tax received/(paid) 2 (48)
Other tax authority receipt 18 64 -
Net cash flows from operating activities 928 810
Investing activities
Purchase of property, plant and equipment and intangible assets (145) (153)
Proceeds from disposals of property, plant and equipment, intangible assets 2 -
and property assets held for sale
Disposal of subsidiaries and associates, net of cash disposed 17 33 (3)
Increase in short term deposits (227) -
Interest received 18 12
Principal element of lease rental receipts 1 2
Advance payments on right-of-use assets (9) (2)
Net cash flows used in investing activities (327) (144)
Financing activities
Interest paid (3) (4)
Interest element of lease rental payments (59) (62)
Principal element of lease rental payments (194) (198)
Arrangement fees paid (1) (2)
New shares issued under share schemes 1 1
Purchase of own shares for cancellation (119) (92)
Purchase of own shares for ESOP trust (25) (26)
Ordinary dividends paid to equity shareholders of the Company 9 (152) (159)
Net cash flows used in financing activities (552) (542)
Net increase in cash and cash equivalents and bank overdrafts 49 124
Cash and cash equivalents and bank overdrafts at beginning of period 336 353
Exchange differences 14 (5)
Cash and cash equivalents and bank overdrafts at end of period 399 472
Cash and cash equivalents and bank overdrafts at the end of the period include
£nil of cash included within assets held for sale on the balance sheet
(2024/25: £nil).
Kingfisher plc
2025/26 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Kingfisher plc ('the Company'), its subsidiaries, joint ventures and
associates (together 'the Group') supply home improvement products and
services through a network of retail stores and other channels, located mainly
in the United Kingdom and continental Europe.
The Company is incorporated in England and Wales, United Kingdom, and is
listed on the London Stock Exchange. The address of its registered office is
One Paddington Square, London, W2 1GG.
The interim financial report does not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. Audited statutory accounts
for the year ended 31 January 2025 were approved by the Board of Directors on
24 March 2025 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under sections 498(2) or
(3) of the Companies Act 2006. The interim financial report has been reviewed,
not audited, and was approved by the Board of Directors on 22 September 2025.
2. Basis of preparation
The interim financial report for the six months ended 31 July 2025 ('the half
year') has been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Conduct Authority and with IAS 34, 'Interim Financial
Reporting', as adopted by the United Kingdom. It should be read in conjunction
with the annual financial statements for the year ended 31 January 2025, which
have been prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and International
Financial Reporting Standards (IFRS) as issued by the IASB. The consolidated
income statement and related notes represent results from continuing
operations, there being no discontinued operations in the periods presented.
Where comparatives are given, '2024/25' refers to the six months ended 31 July
2024.
Going concern
Based on the Group's liquidity position and cash flow projections, including a
forward-looking remote downside scenario, the Directors have a reasonable
expectation that the Company and the Group have adequate resources to continue
in operational existence for the foreseeable future, a period not less than 12
months from the date of this report, and they continue to adopt the going
concern basis of accounting in preparing the condensed consolidated financial
statements for the period ended 31 July 2025.
Considering whether the Group's condensed consolidated financial statements
can be prepared on a going concern basis, the Directors have reviewed the
Group's business activities together with factors likely to affect its
performance, financial position and access to liquidity (including
consideration of financial covenants). As of 31 July 2025, the Group had
access to c.£1.3bn in total liquidity, including cash and cash equivalents of
£399m (net of bank overdrafts), short term deposits of £227m and access to
an undrawn £650m revolving credit facility (RCF), due to expire in May 2028.
In forming their outlook on the future financial performance, the Directors
considered the risk of higher business volatility and the potential negative
impact of the general economic environment on household and trade spend.
The Directors' review also included consideration of a remote scenario that
models the impact of a significant demand or supply shock preventing the Group
from realising a large part of its sales over the period of a month followed
by subdued demand for the following 11 months. The total loss of sales in this
scenario is c.£1.5bn (8% over the impacted period). The scenario assumes the
impact of lost sales is partially offset by a limited set of mitigating
actions on variable and discretionary costs, capital expenditure and the
suspension of capital returns to shareholders. Even under this remote
scenario, which requires drawing on the RCF for a few months, the Group
retains sufficient liquidity and remains in compliance with financial
covenants on credit facilities. Should a more extreme scenario occur than
currently forecast by the Directors under this remote scenario, the Group
would need to implement additional operational or financial measures.
New and amended accounting standards
New standards, amendments and interpretations are in issue and effective for
the Group's financial year ended 31 January
2026, but they do not have a material impact on the interim financial report.
Principal rates of exchange against Sterling
Half year ended 31 July 2025 Half year ended 31 July 2024 Year ended 31 January 2025
Average Period end Average Period end Average Year end
Rate rate Rate rate rate rate
Euro 1.18 1.16 1.17 1.19 1.18 1.20
US Dollar 1.32 1.32 1.27 1.28 1.28 1.24
Polish Zloty 5.00 4.95 5.05 5.09 5.08 5.04
Romanian Leu 5.93 5.88 5.84 5.91 5.89 5.95
Turkish Lira* 53.75 53.75 42.54 42.54 44.38 44.38
* Turkish Lira average exchange rates represent the closing rates for the
periods presented due to the application of hyperinflation accounting in
Turkey.
Risks and uncertainties
The principal risks and uncertainties to which the Group is exposed are set
out on pages 60-65 of the Kingfisher plc Annual Report and Accounts for the
year ended 31 January 2025. These have been reviewed as part of the Group's
half year procedures. There are no additions or removals since the FY 24/25
year-end.
Use of non-GAAP measures
In the reporting of financial information, the Group uses certain measures
that are not required under IFRS, the generally accepted accounting principles
('GAAP') under which the Group reports. The Group believes that retail profit,
adjusted pre-tax profit, adjusted effective tax rate, and adjusted earnings
per share provide additional useful information on performance and trends to
shareholders. These and other non-GAAP measures (also known as 'Alternative
Performance Measures'), such as net debt, are used by the Group for internal
performance analysis and incentive compensation arrangements for employees.
The terms 'retail profit', 'adjusting items', 'adjusted', 'adjusted effective
tax rate', 'net cashflow' and 'net debt' are not defined terms under IFRS and
may therefore not be comparable with similarly titled measures reported by
other companies. They are not intended to be a substitute for, or superior to,
GAAP measures.
Retail profit is defined as continuing profit before tax before central costs,
the Group's share of interest and tax of joint ventures and associates and
adjusting items and net finance costs. Central costs principally comprise the
costs of the Group's head office before adjusting items.
Adjusting items, which are presented separately within their relevant income
statement category, include items which by
virtue of their size and/or nature, do not reflect the Group's ongoing trading
performance. Adjusting items may include, but are
not limited to:
· non-trading items included in operating profit such as profits and
losses on the disposal, closure, exit or impairment of
subsidiaries, joint ventures, associates and investments which do not form
part of the Group's ongoing trading activities;
· the costs of significant restructuring and incremental acquisition
integration costs;
· profits and losses on the disposal/exit of properties(1),
impairments of goodwill and significant impairments (or impairment
reversals) of other non-current assets, which the Group identifies as
adjusting due to volatility which can arise year on
year based on future forecasts and assumptions;
· prior year tax items (including the impact of changes in tax rates
on deferred tax), significant one-off tax settlements and
provision charges/releases and the tax effects of other adjusting items;
· financing fair value remeasurements i.e. changes in the fair value
of financing derivatives, excluding interest accruals,
offset by fair value adjustments to the carrying amount of borrowings and
other hedged items under fair value (or non-
designated) hedge relationships. Financing derivatives are those that relate
to hedged items of a financing nature.
((1)) The Group does not routinely dispose of or exit properties (i.e. other
than on expiry of a lease) and does not consider property disposals to form
part of its trading operations as a result. This includes profits or losses on
disposals of freehold properties, or lease gains or losses arising from the
exit of leased properties before the lease expiry date.
The term 'adjusted' refers to the relevant measure being reported for
continuing operations excluding adjusting items.
The adjusted effective tax rate is calculated as continuing income tax expense
excluding prior year tax items (including the impact of changes in tax rates
on deferred tax), significant one-off tax settlements and provision
charges/releases and the tax effects of other adjusting items, divided by
continuing profit before taxation excluding adjusting items. Prior year tax
items represent income statement tax relating to underlying items originally
arising in prior years, including the impact of changes in tax rates on
deferred tax. The exclusion of items relating to prior years, and those not in
the ordinary course of business, helps provide an indication of the Group's
ongoing rate of tax.
Net debt comprises lease liabilities, borrowings and financing derivatives
(excluding accrued interest) less cash and cash equivalents and short-term
deposits, including such balances classified as held for sale.
Refer to the Glossary for definitions of all of the Group's Alternative
Performance Measures, including further information on why they are used and
details of where reconciliations to statutory measures can be found where
applicable.
3. Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 January 2025, as described in note
2 of those financial statements, except where set out below in relation to
taxes on income for interim periods. The critical accounting judgements and
key sources of estimation uncertainty and are set out in note 3 of the annual
financial statements for the year ended 31 January 2025 and remain unchanged.
Taxes on income for interim periods are accrued using the best estimate of the
effective tax rate that would be applicable to expected total annual earnings.
4. Segmental analysis
Income statement
Half year ended 31 July 2025
UK & Ireland France Poland Other International Total
Sales 3,528 2,048 946 289 6,811
Retail profit/(loss) 344 72 51 (15) 452
Central costs (36)
Share of interest and tax of joint ventures and associates (3)
Adjusting items (30)
Operating profit 383
Net finance costs (45)
Profit before taxation 338
Half year ended 31 July 2024 (re-presented((1)))
UK & Ireland France Poland Other International Total
Sales 3,376 2,099 941 340 6,756
Retail profit/(loss) 325 69 50 (24) 420
Central costs (29)
Share of interest and tax of joint ventures and associates (7)
Adjusting items (10)
Operating profit 374
Net finance costs (50)
Profit before taxation 324
Balance sheet
At 31 July 2025
£ millions UK & Ireland France Poland Other International Total
Segment assets 2,827 1,670 1,104 195 5,796
Central liabilities (10)
Goodwill 2,312
Net debt (1,726)
Net assets 6,372
At 31 July 2024 (re-presented(1))
£ millions UK & Ireland France Poland Other International Total
Segment assets 2,915 1,688 1,123 321 6,047
Central assets 92
Goodwill 2,397
Net debt (1,952)
Net assets 6,584
At 31 January 2025
£ millions UK & Ireland France Poland Other International Total
Segment assets 2,833 1,660 1,168 319 5,980
Central assets 67
Goodwill 2,312
Net debt (2,015)
Net assets 6,344
((1))The Group reassessed its determination of operating and reportable
segments at the prior year-end. Following this reassessment, Poland was
determined to be a separate reportable segment and was separated from the
'Other International' combination of operating segments. Other operating
segments, which do not individually meet the definition of a reportable
segment, continued to be combined and are presented as 'Other International'.
As a result, the 31 July 2024 segmental disclosure presented above has been
re-presented to reflect this revised determination of reportable segments.
There were no changes to the Group's reportable segments in the UK &
Ireland and France.
The Group's operating segments are based on the information reported
internally to the Board of Directors and Group Executive, and are generally
determined to be the retail banners operating in each geographical area (i.e.
B&Q and Screwfix in the UK & Ireland; Castorama, Brico Dépôt and
Screwfix in France; Castorama in Poland; Brico Dépôt in Iberia; Brico
Dépôt in Romania and Koçtaş, the Group's joint venture in Turkey).
NeedHelp, an online services marketplace, and the Group's franchising and
wholesaling operation are also determined to be operating segments. On 18 July
2024, the Group completed the divestment of its c.80% equity interest in
NeedHelp. On 2 May 2025 the Group completed the divestment of its 100%
interest in Brico Dépôt Romania.
The reportable segments disclosed above are based on the geographical areas in
which the Group operates. Within both the UK & Ireland and France
reportable segments, operating segments determined at the retail banner level
have been aggregated to form reportable segments (i.e. B&Q and Screwfix in
the UK & Ireland and Castorama and Brico Dépôt in France). Other
operating segments, which do not individually meet the definition of a
reportable segment, are combined and presented as 'Other International',
consisting of Brico Dépôt Iberia, Brico Dépôt Romania, Screwfix France,
Koçtaş, NeedHelp and results from franchising and wholesaling operations.
Screwfix France has not been aggregated as part of the France reportable
segment due to its level of maturity relative to Castorama and Brico Dépôt
France.
Central costs principally comprise the costs of the Group's head office before
adjusting items. Central assets and liabilities comprise unallocated head
office and other central items, principally relating to central tax assets,
central creditors and accruals, including insurance and payroll .
The majority of the sales in each segment are derived from in-store and online
sales of products. The Group's sales, although generally not highly seasonal
on a half yearly basis, do increase over the Easter period and during the
summer months leading to slightly higher sales usually being recognised in the
first half of the year. However, due to the continued uncertainty around the
current macro-economic environment, the phasing of sales is less predictable.
5. Adjusting items
£ millions Half year ended Half year ended
31 July 2025 31 July 2024
Included within selling and distribution expenses
Net store asset impairment losses - (6)
Operating model restructuring - (3)
- (9)
Included within administrative expenses
UK guaranteed minimum pension credit - 2
- 2
Included within other income/expenses
Loss on disposal of Brico Dépôt Romania (31) -
Loss on disposal of NeedHelp - (3)
Profit on disposal of properties 1 -
(30) (3)
Adjusting items before tax (30) (10)
Prior year and other adjusting tax items (4) 4
Adjusting items (34) (6)
The disposal of the Brico Dépôt Romania business was completed in May 2025,
resulting in a loss on disposal of £31m. See note 17 for further details.
A profit of £1m has been recorded on the exit of one property in France.
Prior year and other adjusting tax items relate principally to tax accrued in
respect of a French corporate income tax surcharge, being a temporary one-year
surcharge applicable for the 2025/26 year, in addition to movements in prior
year provisions to reflect a reassessment of expected outcomes.
Refer to note 5 of the 2024/25 interim accounts for further details on
adjusting items for the half year ended 31 July 2024.
6. Net finance costs
£ millions Half year ended 31 July 2025 Half year ended 31 July 2024
Fixed term debt (3) (4)
Lease liabilities (59) (62)
Other interest expense - (1)
Finance costs (62) (67)
Cash and cash equivalents and short-term deposits 11 12
Net interest income on defined benefit pension schemes 3 3
Other interest income 3 2
Finance income 17 17
Net finance costs (45) (50)
7. Income tax expense
£ millions Half year ended Half year ended
31 July 2025
31 July 2024
UK corporation tax
Current tax on profits for the period (56) (52)
(56) (52)
Overseas tax
Current tax on profits for the period (30) (20)
Adjustments in respect of prior years (1) 3
(31) (17)
Current tax (87) (69)
Deferred tax
Current period (14) (17)
Adjustments in respect of prior years - (1)
(14) (18)
Income tax expense (101) (87)
The adjusted effective tax rate on profit before adjusting items is 26%
(2024/25: 27%), representing the best estimate of the effective rate for the
full financial year. The adjusted effective tax rate calculation is set out in
Section 3 of this announcement.
An accounting surplus is recognised for the UK defined benefit pension scheme
- refer to note 11. The surplus has been recognised on the basis that the
future economic benefits are unconditionally available to the Group, which is
assumed to be via a refund assuming the full settlement of plan liabilities in
the event of a plan wind-up. On 22 November 2023, the UK government announced
that the authorised surplus payments charge would be reduced from 35% to 25%
from 6 April 2024. In the prior year, following the enactment of this
legislation on 11 March 2024, the deferred tax liability has been reduced by
£32m with a corresponding credit to other comprehensive income.
8. Earnings per share
Pence Half year ended Half year ended 31 July 2024
31 July 2025
Basic earnings per share 13.4 12.8
Effect of dilutive share options (0.2) (0.2)
Diluted earnings per share 13.2 12.6
Basic earnings per share 13.4 12.8
Adjusting items before tax 1.7 0.5
Prior year and other adjusting tax items 0.2 (0.1)
Adjusted basic earnings per share 15.3 13.2
Diluted earnings per share 13.2 12.6
Adjusting items before tax 1.7 0.5
Prior year and other adjusting tax items 0.2 (0.1)
Adjusted diluted earnings per share 15.1 13.0
Basic earnings per share is calculated by dividing the profit for the year
attributable to equity shareholders of the Company by the weighted average
number of shares in issue during the year, including vested but contingently
issuable shares and deferred shares but excluding those held in the Employee
Share Ownership Plan trust ('ESOP trust') which for the purpose of this
calculation are treated as cancelled.
For diluted earnings per share, the weighted average number of shares is
adjusted to assume conversion of all dilutive potential ordinary shares. These
represent share options granted in connection with employee share-based
payment plans that are yet to vest.
The calculation of basic and diluted earnings per share is based on the profit
for the year attributable to equity shareholders of the Company. A
reconciliation of statutory earnings to adjusted earnings is set out below:
£ millions Half year ended 31 July 2025 Half year ended 31 July 2024
Earnings 237 237
Adjusting items before tax 30 10
Prior year and other adjusting tax items 4 (4)
Adjusted earnings 271 243
The weighted average number of shares in issue during the period, excluding
those held in the ESOP trust, is set out below:
Weighted average number of shares (millions) Half year ended Half year ended 31 July 2024
31 July 2025
Basic 1,770 1,850
Effect of dilutive potential ordinary shares 26 28
Diluted 1,796 1,878
9. Dividends
Half year ended Half year ended
£ millions 31 July 2025 31 July 2024
Dividends to equity shareholders of the Company
Ordinary final dividend for the year ended 31 January 2025 of 8.60p per share 152 -
Ordinary final dividend for the year ended 31 January 2024 of 8.60p per share - 159
152 159
The proposed interim ordinary dividend for the period ended 31 July 2025 is
3.80p per share (2024/25: 3.80p per share).
10. Property, plant and equipment, investment property, property
assets held for sale and other intangible assets
Additions to the cost of property, plant and equipment, investment property
and other intangible assets are £119m (2024/25: £126m). Disposals, excluding
the divestment of Brico Dépôt Romania, in net book value of property, plant
and equipment, investment property, property assets held for sale and other
intangible assets are £nil (2024/25: nil).
Capital commitments contracted but not provided for at the end of the period
are £27m (2024/25: £49m) and at 31 January 2025 were £14m.
11. Post-employment benefits
Half year ended Half year ended
£ millions 31 July 2025 31 July 2024
Net surplus in schemes at beginning of period 101 99
Current service cost (6) (6)
Past service credit - 2
Administration costs (2) (2)
Net interest income 3 3
Net remeasurement (losses)/gains (11) 1
Contributions paid by employer 1 2
Exchange differences (3) 1
Net surplus in schemes at end of period 83 100
Half year ended Half year ended Year ended
31 July 2025 31 July 2024 31 January 2025
UK 192 216 202
Overseas (109) (116) (101)
Net surplus in schemes at end of period 83 100 101
Present value of defined benefit obligations (1,763) (1,944) (1,832)
Fair value of scheme assets 1,846 2,044 1,933
Net surplus in schemes at end of period 83 100 101
The assumptions used in calculating the costs and obligations of the Group's
defined benefit pension schemes are set by the Directors after consultation
with independent professionally qualified actuaries. The assumptions are based
on the conditions at the time and changes in these assumptions can lead to
significant movements in the estimated obligations, as illustrated in the
sensitivity analysis provided in note 28 of the annual financial statements
for the year ended 31 January 2025.
A full actuarial valuation of the scheme is carried out every three years by
an independent actuary for the Trustee and the last full valuation was carried
out as at 31 March 2022 with the next valuation currently ongoing. Following
the 2022 valuation and in accordance with the scheme's Statement of Funding
Principles, the Trustee and Kingfisher agreed to cease annual employer
contributions during the period from August 2022 to July 2025. This agreement
was reached with reference to a funding objective that targets a longer-term,
low risk funding position in excess of the minimum statutory funding
requirements. This longer-term objective is based on the principles of the
scheme reaching a point where it can provide benefits to members with a high
level of security, thereby limiting its reliance on the employer for future
support. The Company monitors the scheme funding level on a regular basis and
will reassess with the scheme Trustee the appropriate level of contributions
at future valuations.
A key assumption in valuing the pension obligation is the discount rate.
Accounting standards require this to be set based on market yields on
high-quality corporate bonds at the balance sheet date. The UK scheme discount
rate is derived using a single equivalent discount rate approach, based on the
yields available on a portfolio of high-quality Sterling corporate bonds with
the same duration as that of the scheme liabilities.
The principal financial assumptions for the UK scheme, being the Group's
principal defined benefit scheme, are set out below:
At At At
Annual % rate 31 July 2025 31 July 2024 31 January 2025
Discount rate 5.65 5.00 5.40
Rate of pension increases 2.95 3.05 3.05
The Court of Appeal's decision on 25 July 2024, in the case Virgin Media v NTL
Pension Trustees II Limited (and others), confirmed that certain rules of a
contracted-out defined benefit scheme cannot be altered without the statutory
actuarial confirmation having been obtained and that non-compliant alterations
are void. On 5 June 2025, the Department for Work and Pensions announced plans
to legislate to allow retrospective actuarial confirmation of such amendments.
The pension trustees continue to monitor developments closely and will assess
any implications on the UK defined benefit scheme once further legislative
detail is available.
12. Financial instruments
The Group holds the following derivative financial instruments at fair value:
At At At
£ millions 31 July 2025 31 July 2024 31 January 2025
Foreign exchange contracts 11 3 24
Derivative assets 11 3 24
At At At
£ millions 31 July 2025 31 July 2024 31 January 2025
Foreign exchange contracts (22) (16) (5)
Derivative liabilities (22) (16) (5)
The fair values are calculated by discounting future cash flows arising from
the instruments and adjusted for credit risk. These fair value measurements
are all made using observable market rates of interest, foreign exchange and
credit risk. All the derivatives held by the Group at fair value are
considered to have fair values determined by level 2 inputs as defined by the
fair value hierarchy of IFRS 13, 'Fair value measurement', representing
significant observable inputs other than quoted prices in active markets for
identical assets or liabilities. There are no non-recurring fair value
measurements, nor have there been any transfers of assets or liabilities
between levels of the fair value hierarchy.
Except as detailed in the following table of borrowings, the carrying amounts
of financial instruments (excluding lease liabilities) recorded at amortised
cost in the financial statements are approximately equal to their fair values.
Where available, market values are used to determine the fair values of
borrowings. Where market values are not available or are not reliable, fair
values have been calculated by discounting cash flows at prevailing interest
and foreign exchange rates. This has resulted in level 2 inputs for borrowings
as defined by the IFRS 13 fair value hierarchy.
Carrying amount
£ millions At At At
31 July 2025 31 July 2024 31 January 2025
Bank overdrafts 14 13 9
Bank loans 1 - 1
Fixed term debt 99 100 99
Borrowings 114 113 109
Fair value
£ millions At At At
31 July 2025 31 July 2024 31 January 2025
Bank overdrafts 14 13 9
Bank loans 2 - 2
Fixed term debt 100 107 102
Borrowings 116 120 113
Fixed term debt comprises a £50m term loan maturing in June 2027 and a £50m
term loan maturing in January 2028, both of which were refinanced in the
current period.
In May 2024 the Group entered into a new £650m Revolving Credit Facility
(RCF) agreement with a group of its relationship banks, linked to
sustainability targets. In May 2025 the credit facility was extended by one
year and now expires in May 2028. As of 31 July 2025, this RCF was undrawn.
13. Share capital
Number of Ordinary
ordinary shares share capital
millions £ millions
Allotted, called up and fully paid:
At 1 February 2025 1,793 282
New shares issued under share schemes 1 -
Purchase of own shares for cancellation (43) (7)
At 31 July 2025 1,751 275
At 1 February 2024 1,875 294
New shares issued under share schemes 1 -
Purchase of own shares for cancellation (36) (5)
At 31 July 2024 1,840 289
Ordinary shares have a par value of 15(5)/(7) pence per share and carry full
voting, dividend and capital distribution rights.
During the period the Group purchased 43 million (2024/25: 36 million) of the
Company's own shares for cancellation at a cost of £119m (2024/25: £92m) as
part of its capital returns programme.
14. Other reserves
Half year ended 31 July 2025
Translation reserve Cash flow Other
£ millions hedge reserve Total
At 1 February 2025 124 16 159 299
Inventory cash flow hedges - fair value losses - (48) - (48)
Tax on items that will not be reclassified subsequently to profit or loss - 12 - 12
Currency translation differences
Subsidiaries 74 - - 74
Joint ventures and associates (1) - - (1)
Transferred to income statement 14 - - 14
Other comprehensive income/(expense) for the period 87 (36) - 51
Inventory cash flow hedges - losses transferred to inventories - 17 - 17
Tax on equity items (1) (5) - (6)
At 31 July 2025 210 (8) 159 361
Half year ended 31 July 2024
Translation reserve Cash flow Other
£ millions hedge reserve Total
At 1 February 2024 144 (13) 159 290
Inventory cash flow hedges - fair value losses - (6) - (6)
Tax on items that will not be reclassified subsequently to profit or loss - 1 - 1
Currency translation differences (28) - - (28)
Subsidiaries
Joint ventures and associates 2 - - 2
Other comprehensive expense for the period (26) (5) - (31)
Inventory cash flow hedges - losses transferred to inventories - 15 - 15
Tax on equity items - (3) - (3)
At 31 July 2024 118 (6) 159 271
15. Cash generated by operations
£ millions Half year ended Half year ended
31 July 2025
31 July 2024
Operating profit 383 374
Share of post-tax results of joint ventures and associates 9 13
Depreciation and amortisation 328 330
Net impairment losses - 6
Gain on disposal of property, plant and equipment, investment property and (2) -
property assets held for sale
Loss on disposals of subsidiaries and associates 31 3
Share-based compensation charge 12 12
Increase in inventories (96) (82)
Increase in trade and other receivables (67) (44)
Increase in trade and other payables 263 244
Movement in provisions (6) (2)
Movement in post-employment benefits 7 4
Cash generated by operations 862 858
16. Net debt
£ millions At At At
31 July 2025 31 July 2024 31 January 2025
Cash and cash equivalents 413 485 336
Cash and cash equivalents included within assets held for sale - - 9
Bank overdrafts (14) (13) (9)
Cash and cash equivalents and bank overdrafts 399 472 336
Short-term deposits 227 - -
Bank loans (1) - (1)
Fixed term debt (99) (100) (99)
Lease liabilities (2,253) (2,324) (2,211)
Lease Liabilities directly associated with assets held for sale (2) - (42)
Net financing derivatives 3 - 2
Net debt (1,726) (1,952) (2,015)
£ millions Half year ended Half year ended
31 July 2025 31 July 2024
Net debt at beginning of period (2,015) (2,116)
Net increase in cash and cash equivalents and bank overdrafts 49 124
Increase in short-term deposits 227 -
Arrangement fees paid 1 2
Net cash flow((1)) 277 126
Lease liabilities disposed 38 -
Movements in lease liabilities (23) 37
Exchange differences and other non-cash movements (3) 1
Net debt at end of period (1,726) (1,952)
((1)) (Refer to the glossary for the definition of net cash flow in Section 7
of this announcement.)
17. Disposals
In the prior year, following the announcement that the Group had reached an
agreement to dispose of its interest in Brico Dépôt Romania, the business
was classified as held for sale. On 2 May 2025, the Group disposed of its 100%
interest in the Brico Dépôt Romania business to Altex Romania for a gross
consideration of £53m. Brico Dépôt Romania has not been classified as a
discontinued operation as it does not represent a major operation for the
Group.
Brico Dépôt Romania was included within the Other International aggregation
of operating segments.
The loss on disposal of £31m, which arises due to the transfer of cumulative
foreign exchange losses previously recorded in the translation reserve on
consolidation, as well as adjustments to the final proceeds received and net
assets disposed compared with the estimated values at 31 January 2025, is
analysed as follows:
£ millions
Proceeds 53
Net assets disposed (see below) (68)
Transaction costs and warranties (2)
Loss on disposal before cumulative exchange losses (17)
Cumulative exchange losses transferred from translation reserve (14)
Loss on disposal (31)
The current year net cashflow effect of the disposal is analysed as follows:
£ millions
Cash proceeds 53
Cash disposed (17)
Disposal & other costs (3)
Net disposal proceeds received 33
The major classes of assets and liabilities disposed are as follows:
£ millions
Other intangible assets 2
Property, plant & equipment 38
Right-of-use assets 15
Inventories 94
Trade and other receivables 4
Cash and cash equivalents 17
Trade and other payables (61)
Lease liabilities (38)
Other liabilities (3)
Net assets disposed 68
18. Contingent liabilities
The Group is subject to claims and litigation arising in the ordinary course
of business and provision is made where liabilities are considered likely to
arise on the basis of current information and legal advice.
The Group files tax returns in many jurisdictions around the world and at any
one time is subject to periodic tax audits in the ordinary course of its
business. Applicable tax laws and regulations are subject to differing
interpretations and the resolution of a final tax position can take several
years to complete. Where it is considered that future tax liabilities are more
likely than not to arise, an appropriate provision is recognised in the
financial statements.
Whilst the procedures that must be followed to resolve these types of tax
issues make it likely that it will be some years before the eventual outcome
is known, the Group does not currently consider the likelihood of adverse
outcomes in relation to these matters (other than those matters for which
liabilities have already been recorded) to be probable.
In October 2017, the European Commission opened a state aid investigation into
the Group Financing Exemption section of the UK Controlled Foreign Company
rules. While the Group had complied with the requirements of UK tax law in
force at the time, in April 2019 the European Commission concluded that
aspects of the UK Controlled Foreign Company regime partially constituted
illegal state aid. In September 2024, the European Court of Justice annulled
this decision, and, in March 2025, HMRC repaid the £64m tax and interest
previously assessed, plus an additional £5m payment of repayment interest.
19. Related party transactions
The Group's significant related parties are its joint venture and pension
schemes as disclosed in note 37 of the annual financial statements for the
year ended 31 January 2025. There have been no significant changes in related
parties or related party transactions in the period.
20. Post balance sheet events
During the period since the balance sheet date, the Group purchased 3 million
of the Company's own shares for cancellation at a cost of £7m. This amount
was deducted from equity in the half year to 31 July 2025 as a result of an
irrevocable buyback agreement which was in place at 31 July 2025.
In September 2025, collective consultation commenced regarding proposals to
implement a new simplified retail leadership structure across all B&Q
stores in the UK and Ireland, following a successful year-long test of the
proposed structure. Total operating model restructuring costs of c.£20m are
expected to be incurred relating to this programme, which will be recorded
within adjusting items. The programme is expected to be completed in H1
2026/27.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that the condensed interim financial statements have
been prepared in accordance with United Kingdom adopted International
Accounting Standard 34, "Interim Financial Reporting", and that the Interim
Results includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
· an indication of important events that have occurred during the
period and their impact on the interim condensed financial statements, and a
description of the principal risks and uncertainties for the remainder of the
financial year; and
· material related party transactions in the period and any material
changes in the related party transactions described in the last annual report.
The Directors of Kingfisher plc were listed in the Group's 2024/25 Annual
Report and Accounts. A list of current Directors is maintained on the
Kingfisher plc website which can be found at www.kingfisher.com
(http://www.kingfisher.com) .
By order of the Board
Thierry Garnier
Bhavesh Mistry
Chief Executive Officer
Chief Financial Officer
22 September 2025
22 September 2025
INDEPENDENT REVIEW REPORT TO KINGFISHER PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
July 2025 which comprises the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of changes in
equity, the consolidated balance sheet, the consolidated cash flow statement
and related notes 1 to 20.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 July 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards and International Financial Reporting Standards as issued by the
IASB. The condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with United Kingdom adopted
International Accounting Standard 34, "Interim Financial Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do
so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
22 September 2025
Section 7: Glossary
Alternative Performance Measures (APMs)
In the reporting of financial information, the Directors have adopted various
Alternative Performance Measures (APMs), also known as non-GAAP measures, of
historical or future financial performance, position or cash flows other than
those defined or specified under International Financial Reporting Standards
(IFRS). These measures are not defined by IFRS and therefore may not be
directly comparable with other companies' APMs, including those used by other
retailers. APMs should be considered in addition to, and are not intended to
be a substitute for, or superior to, IFRS measurements.
APM Closest equivalent IFRS measure Reconciling items to IFRS measure Definition and purpose
Adjusted basic earnings per share (EPS) Basic earnings per share A reconciliation of adjusted basic earnings per share is included in note 8 of Adjusted basic earnings per share represents profit after tax attributable to
the condensed financial statements (Section 6) the owners of the parent, before the impact of adjusting items (see definition
below), divided by the weighted average number of shares in issue during the
period. The exclusion of adjusting items helps provide an indication of the
Group's ongoing business performance.
Adjusted EBITDA Profit before taxation A reconciliation of Adjusted EBITDA is set out in the Financial Review Adjusted EBITDA (earnings before adjusting items, interest, tax, depreciation
(Section 3) and amortisation) is calculated as retail profit less central costs and before
depreciation and amortisation. This measure is widely used in calculating the
ratio of net debt to Adjusted EBITDA, and is used to reflect the Group's
leverage.
Adjusted effective tax rate Effective tax rate A reconciliation to the statutory effective tax rate is set out in the The adjusted effective tax rate is calculated as continuing income tax expense
Financial Review (Section 3) excluding tax adjustments in respect of prior years (including the impact of
changes in tax rates on deferred tax), significant one-off tax settlements and
provision charges/releases and the tax effects of adjusting items, divided by
continuing profit before taxation excluding adjusting items. Prior year tax
items represent income statement tax relating to underlying items originally
arising in prior years, including the impact of changes in tax rates on
deferred tax. The exclusion of items relating to prior years, and those not in
the ordinary course of business, helps provide an indication of the Group's
ongoing rate of tax.
Adjusted pre-tax profit (PBT) Profit before taxation A reconciliation of adjusted PBT is set out in the Financial Review (Section Adjusted pre-tax profit is used to report the performance of the business at a
3) Group level. This is stated before adjusting items. The exclusion of adjusting
items helps provide an indication of the Group's ongoing business performance.
Adjusted post-tax profit Profit after tax A reconciliation of adjusted post-tax profit is set out in the Financial Adjusted post-tax profit is used to report the after-tax performance of the
Review (Section 3) and note 8 of the condensed financial statements (Section business at a Group level. This is stated before adjusting items. The
6) exclusion of adjusting items helps provide an indication of the Group's
ongoing after-tax business performance.
Adjusting items No direct equivalent Not applicable Adjusting items, which are presented separately within their relevant income
statement category, include items which by virtue of their size and/or nature,
do not reflect the Group's ongoing trading performance. Adjusting items may
include, but are not limited to: non-trading items included in operating
profit such as profits and losses on the disposal, closure, exit or impairment
of subsidiaries, joint ventures, associates and investments which do not form
part of the Group's ongoing trading activities; the costs of significant
restructuring and incremental acquisition integration costs; profits and
losses on the exit of properties, impairments of goodwill and significant
impairments (or impairment reversals) of other non-current assets; prior year
tax items (including the impact of changes in tax rates on deferred tax),
significant one-off tax settlements and provision charges/releases and the tax
effects of other adjusting items; financing fair value remeasurements i.e.,
changes in the fair value of financing derivatives, excluding interest
accruals, offset by fair value adjustments to the carrying amount of
borrowings and other hedged items under fair value (or non-designated) hedge
relationships. Financing derivatives are those that relate to hedged items of
a financing nature.
'Big-ticket' category sales No direct equivalent Not applicable 'Big-ticket' category sales comprise the sales from our kitchen, bathroom
& storage products. It is used as a measure of performance of our
relatively higher-value products.
Central costs No direct equivalent Not applicable Central costs principally comprise the costs of the Group's head office before
adjusting items. This helps provide an indication of the Group's ongoing head
office costs.
Constant currency No direct equivalent Not applicable Constant currency changes in total sales, LFL sales, gross profit, gross
margin %, retail profit, retail profit margin % and operating costs reflect
the year-on-year movements after translating the prior year comparatives at
the current year's average exchange rates. These are presented to eliminate
the effects of exchange rate fluctuations on the reported results.
Core category sales No direct equivalent Not applicable Core sales include the sales from non-seasonal products across all our
categories, other than 'big ticket' sales (i.e., kitchen, bathroom &
storage). It is used as a measure of our non-seasonal related performance,
which is the majority of Group sales.
Dividend cover No direct equivalent Not applicable Dividend cover represents the ratio of earnings to dividends. It is calculated
as adjusted basic earnings per share divided by the total (full year) dividend
per share. It is used as an indication of how sustainable dividend payments
are.
E-commerce sales penetration % No direct equivalent Refer to definition E-commerce sales penetration % represent total e-commerce sales as a
percentage of sales. For the purpose of this calculation only, sales are
adjusted to replace marketplace net sales with marketplace gross sales. It is
used to track the success of our e-commerce strategy.
First-party No direct equivalent Refer to definition First-party e-commerce sales are total first-party sales (excluding VAT)
e-commerce sales or 1P derived from online transactions, including click & collect (C&C).
This includes sales transacted on any device, however not sales through a call
centre. Sales (and related commissions/fees) from products supplied by
third-party e-commerce marketplace vendors are excluded. It is used to measure
the performance of our first-party e-commerce business across the Group.
Total No direct equivalent Refer to definition Total e-commerce sales are first-party e-commerce sales plus marketplace gross
e-commerce sales sales. References to digital or e-commerce sales growth relates to growth in
constant currency. It is used to measure the performance of all e-commerce
business (first-party and third-party) across the Group.
Free cash flow Net cash flows from operating activities A reconciliation of free cash flow is set out in the Financial Review (Section Free cash flow represents the cash generated from operations (excluding
3) adjusting items) less the amount spent on interest, tax and capital
expenditure during the year (excluding asset disposals). This provides a
measure of how much cash the business generates that can be used for
expansion, capital returns and other purposes.
Gross margin % No direct equivalent Refer to definition Gross profit represents sales from the supply of home improvement products and
services (excluding VAT), less the associated cost of those sales. Gross
margin % represents gross profit as a percentage of sales. It is a measure of
operating performance.
LFL sales Sales Refer to definition LFL (like-for-like) sales growth represents the constant currency,
year-on-year sales growth for stores that have been open for more than one
year, as well as other revenue streams which have more than one year of
comparative sales (e.g., marketplace net sales). It is a measure to reflect
the Group's performance on a comparable basis. Non-LFL sales represent the
difference between total sales and LFL sales, principally comprising sales for
stores open for less than one year.
Marketplace gross merchandise value (GMV) No direct equivalent Refer to definition Marketplace GMV is the total transaction value (including VAT) from the sale
of products supplied by third-party e-commerce marketplace vendors. It is used
to measure the performance of our e-commerce marketplace, and is the basis on
which our commissions from third-party vendors are determined.
Marketplace gross sales No direct equivalent Refer to definition Marketplace gross sales is the transaction value (excluding VAT) from the sale
of products supplied by third-party e-commerce marketplace vendors. Returned
and cancelled orders are excluded. It is used to measure the performance of
our e-commerce marketplace.
Marketplace net sales No direct equivalent Refer to definition Marketplace net sales are commissions (excluding VAT) earned on e-commerce
marketplace transactions, together with other service fees. This is included
within sales. Commissions are determined based on GMV. It is used to measure
the performance of our e-commerce marketplace.
Marketplace participation % No direct equivalent Refer to definition Marketplace participation % represents marketplace gross sales as a percentage
of total e-commerce sales. It is used to track the success of our marketplace
strategy and performance.
Net debt No direct equivalent A reconciliation of this measure is provided in note 16 of the condensed Net debt comprises lease liabilities, borrowings and financing derivatives
financial statements (Section 6) (excluding accrued interest), less cash and cash equivalents and short-term
deposits, including such balances classified as held for sale.
Net cash flow Net (decrease) / increase in cash and cash equivalents and bank overdrafts A reconciliation of net cash flow is set out in the Financial Review (Section Net cash flow is a measure to reflect the total movement in the net debt
3) and in note 16 of the condensed financial statements (Section 6) balance during the year excluding the movement in lease liabilities, exchange
differences and other non-cash movements.
Operating costs No direct equivalent Not applicable Operating costs represent gross profit less retail profit. This is the Group's
operating cost measure used to report the performance of our retail
businesses.
Own exclusive brands (OEB) sales No direct equivalent Refer to definition OEB refers to our portfolio of own exclusive brands across seven core
categories - surfaces & décor, tools & hardware, bathroom &
storage, kitchen, EPHC (electricals, plumbing, heating & cooling),
building & joinery, and outdoor.
OEB sales are sales of own exclusive brand products. It is used to measure the
performance of OEB across the Group.
Retail profit Profit before taxation A reconciliation of Group retail profit to profit before taxation is set out Retail profit is defined as continuing profit before tax before central costs,
in the Financial Review (Section 3) and note 4 of the condensed financial the Group's share of interest and tax of JVs and associates, adjusting items
statements (Section 6). There is no statutory equivalent to retail profit at a and net finance costs. This is the Group's operating profit measure used to
retail banner level report the performance of our retail businesses.
Retail profit margin % No direct equivalent Refer to definition Retail profit is the Group's operating profit measure used to report the
performance of our retail businesses and is separately defined above. Retail
profit margin % represents retail profit as a percentage of sales. It is a
measure of operating performance.
ROCE No direct equivalent Refer to definition ROCE (return on capital employed) is the post-tax retail profit less central
costs, excluding adjusting items, divided by capital employed excluding
historic goodwill, net debt and adjusting restructuring provision. The measure
provides an indication of the ongoing returns from the capital invested in the
business. Capital employed is calculated as a two-point average. The
calculation excludes disposed businesses.
Same-store net inventory Inventory Refer to definition Same-store net inventory movement represents the constant currency,
year-on-year change in net inventory before the impact of store openings and
closures. It is a measure to reflect the Group's inventory management on a
comparable basis.
Seasonal category sales No direct equivalent Refer to definition Seasonal category sales include the sales from certain products within our
outdoor, electricals, plumbing, heating & cooling (EPHC) and surfaces
& décor categories. It is used as a measure of the performance of our
sales that are subject to the season we are in, or prevailing weather
conditions.
Trade sales No direct equivalent Refer to definition All sales made against a trade loyalty card or account (Including B2B) or by
trade customers per Screwfix' customer database. Sales are inclusive of
adjustments for refunds, discounts, vouchers, and cashback.
Trade sales penetration No direct equivalent Refer to definition It represents total trade sales as a percentage of total sales. It is used to
track the success of our trade strategy.
Other Definitions
B2B customer is a trade customer engaged in constructing, improving, or
maintaining properties specifically for commercial purposes related to the
properties themselves - such as sale, rental, or ongoing maintenance to
support business continuity (e.g., facilities management). These activities
typically occur at a regional or national level.
B2B manager is a role dedicated to supporting B2B customers engage with our
trade proposition.
France consists of Castorama France and Brico Dépôt France.
GNFR (Goods Not For Resale) covers the procurement of all goods and services a
retailer consumes (including ocean freight, energy, media buying, cleaning,
and security).
Iberia consists of Brico Dépôt Spain and Brico Dépôt Portugal.
Other International consists of Iberia, Romania, 'Screwfix France &
Other', and Turkey (Koçtaş JV). 'Screwfix France & Other' consists of
the consolidated results of Screwfix France, NeedHelp, and results from
franchise and wholesale agreements. On 18 July 2024, we completed a divestment
of our c.80% equity interest in NeedHelp. On 2 May 2025 the Group completed
the divestment of its 100% equity interest in Brico Dépôt Romania for
proceeds of £53m. The Group recognised a £31m loss on disposal (included in
adjusting items) as at H1. Please see note 5 and 17 of the condensed financial
statements for more details (Section 6).
SKU (Stock Keeping Unit) is defined as the number of individual variants of
products sold or remaining in stock. It is a distinct type of item for sale,
such as a product and all attributes associated with the item type that
distinguish it from others. These attributes could include, but are not
limited to, manufacturer, description, material, size, colour, packaging and
warranty terms.
Trade colleague refers to in-store customer advisor dedicated to supporting
all professional customers in-store, often signposted as such (e.g.
distinctive uniform, stationed in trade area).
Trade customer refers to someone who regularly purchases our products or
services to improve physical spaces used or owned by others - unlike Home
Improvers, who buy for the purpose of improving spaces they personally use.
Trade sales partner is a customer facing role dedicated to building strong,
1:1 relationships with a small number of high value / high potential value
customers where there is a mutually beneficial opportunity to grow their
engagement with our propositions. Typically at a local or regional level.
UK & Ireland consists of B&Q in the UK & Ireland and Screwfix in
the UK & Ireland.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR UUVNRVOUKUARRecent news on Kingfisher
See all newsREG - Kingfisher PLC - Half Year Results
AnnouncementREG - Kingfisher PLC - Director/PDMR Shareholding
AnnouncementREG - Kingfisher PLC - Total Voting Rights
AnnouncementREG - Kingfisher PLC - Director/PDMR Shareholding
AnnouncementREG - Kingfisher PLC - Director/PDMR Shareholding
Announcement