PARIS: Home improvement retailer Kingfisher Plc (KGF.L) reported Tuesday that its third-quarter total Group sales were 3.04 billion pounds, a growth of 3 percent on a reported basis and 0.3 percent at constant currency rates. Like-for-like sales, meanwhile, dropped 0.5% reflecting continued weak sales in France and slightly lower impact from business disruption than first half.
Looking ahead, for fiscal 2018, the company said it remains comfortable with consensus underlying profit before tax expectations of 785 million pounds. The company also remains on track to deliver full year strategic milestones. In its trading update, the company reported that UK & Ireland sales were 1.27 billion pounds, up 2.5 percent on a reported basis and up 1.5 percent on like-for-like basis.
France sales edged up 0.4 percent to 1.15 billion pounds, but LFL sales dropped 4.1 percent.
Véronique Laury, Chief Executive Officer, said, “We have seen strong growth at Screwfix and Poland offset by continued weak sales in France, alongside some business disruption from our ONE Kingfisher plan, principally reflecting product availability and clearance. We continue to act on the causes of this disruption, which we are confident will ease.”
Laury further said, “We remain on track to deliver our full year strategic milestones, for the second year in a row. With plans in place to support our overall performance, we remain comfortable with full year profit expectations.”
Following proposed legislation in France, a corporate tax surcharge is expected to increase group tax charge by about 25 million euros for fiscal 2018.
