B&Q owner Kingfisher reinstated its dividend as it reported soaring annual profits and a strong start to the new fiscal year on higher demand from “a new generation of DIYers” working from home during the Covid-19 pandemic.
Pre-tax profits rose 634% to £756m on a 7.2% increase in sales to £12.3bn. A dividend of 8.5p a share was declared against 3.33p a year earlier. First quarter like-for-like (LFL) sales were up 24.2% to March 18, Kingfisher said on Monday.
“Current trading remains positive and, while visibility is limited for the year as a whole, we are confident of continued outperformance of our wider markets,” said chief executive Thierry Garnier.
“The Covid crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIY’ers – and we expect these to endure.”
Pre-tax profits on an adjusted bases rose 44.4% to £786m. The company forecast current first-half low double-digit LFL sales growth and was planning for a fall in second half LFL sales of 5% – 15%, impacted by strong year on year comparables and uncertainty over the macroeconomic and consumer environment.
