Kingfisher Plc · LSE:KGF
Kingfisher — FY2024/25 Earnings Presentation
40 slides from Kingfisher's earnings presentation, Mar 25, 2025
Slide 1: Kingfisher plc Full year results
Kingfisher plc Full year results 12 months to 31 January 2025 25 March 2025 1
Slide 2: Agenda
Agenda Thierry Garnier (CEO) Key messages Bhavesh Mistry (CFO) FY 24/25 results FY 25/26 outlook & guidance Thierry Garnier (CEO) Delivering on our strategic objectives France plan update 2 2
Slide 3: Key messages
Key messages Market share gains in all key regions Strong delivery against strategic objectives UK & Ireland (GfK, Barclays, BRC) 17.9% trade sales penetration (+4.9%pts)(1) France (GfK) 19.0% e-commerce sales penetration (+1.6%pts) Poland (GfK) Accelerated Castorama France restructuring plan Result
Slide 4: Full year 24/25 results
Full year 24/25 results Bhavesh Mistry Chief Financial Officer
Slide 5: Key financials
Key financials Sales(1) Gross margin % -0.8% +50bps LFL -1.7% 37.3% Adjusted PBT(2) Free cash flow £528m £511m -7.0% FY 23/24: £514m Net leverage(3) Shareholder returns 1.6x £453m FY 23/24: 1.6x FY 23/24: £397m (1) Total sales of £12,784m. Variance in constant currency (2) Before adjusting items (pr
Slide 6: Improving trend in core; encouraging big-ticket sales in Q4
Improving trend in core; encouraging ‘big-ticket’ sales in Q4 Group LFL sales (%) by quarter and by category(1) -0.3% -0.3% 67% of sales and 77% of volume Core -1.5% Stability driven by repair, maintenance and -2.2% renovation activity on existing homes 1 2 3 4 1.3% 15% of sales and 6% of volume Big
Slide 7: UK & Ireland: strong performance in trade & e-commerce
UK & Ireland: strong performance in trade & e-commerce LFL –0.4% ▪ Market share gains(2) – core categories performing well, helped by strong performance in trade and e-commerce. TradePoint LFL LFL +1.0% +6.4% and e-commerce sales growth +8.7% Sales £6,456m ▪ Sales – LFL growth +1.0% in core categori
Slide 8: France: growing share against a weak consumer backdrop
France: growing share against a weak consumer backdrop LFL –5.7% ▪ Market share gains(2) – driven by effective range reviews and LFL -6.6% strong progress in addressing trade customer needs Sales £3,883m ▪ Sales – improved underlying H2 trends driven by better performance in all categories. Kitchen
Slide 9: Poland: strong trade performance and margin management
Poland: strong trade performance and margin management ▪ Market share gains(2) – supported by strong progress in addressing trade customer needs, e-commerce sales, and new stores Sales £1,788m ▪ Sales – ‘big-ticket’ categories delivered LFL sales growth YoY, with YoY chg (%)(1) +3.2% a strong perfor
Slide 10: Successful disposal of Romania; strong actions taken in Turkey
Successful disposal of Romania; strong actions taken in Turkey FY 24/25 sales Profit contribution £m % chg(1) % LFL £m Prior year (£m) Iberia 384 +6.1% +6.1% 8 6 Romania 257 (1.4)% +0.8% (11) (18) Screwfix France & Other 16 n/a n/a (35) (30) Koçtaş (JV)(2) n/a n/a n/a (15) (1) Iberia Encouraging tra
Slide 11: Group profit bridge
Group profit bridge £m As guided, operating cost reductions partially offset higher pay rates and technology costs +10 +3 (1) (14) (85) +60 +33 (94) 568 +112 528 (64) Includes c.£120m of structural cost reductions FY 23/24 LFL sales at LFL gross Pay rate Technology Operating B&Q rates Prior year Cen
Slide 12: Group cash flow
Group cash flow £m +108 Delivering attractive returns to shareholders: ▪ £300m new share buyback programme announced (512) ▪ £900m share buybacks completed over last 4 years ▪ c.£1bn dividends paid over last 4 years (58) 1,290 (317) Strong inventory management: ▪ £(107)m lower same-store inventory (
Slide 13: Disciplined approach to capital allocation
Disciplined approach to capital allocation Invest in attractive Sustainable dividend Returns to growth opportunities growth shareholders Organic growth Progressive growth Surplus capital to be opportunities with of dividends returned via share high ROCE ― buybacks or ― Target cover range special div
Slide 14: Maintaining our focus on costs and cash in 2025
Maintaining our focus on costs and cash in 2025 Multiple gross margin opportunities More to go after with opex & inventory ▪ Group buying and sourcing efficiencies ▪ Store and head office efficiencies ▪ Deliver further e-commerce marketplace growth ▪ Goods Not For Resale (GNFR) renegotiations ▪ Deli
Slide 15: FY 25/26 outlook & guidance
FY 25/26 outlook & guidance Low case High case Market growth ▪ UK: flat ▪ UK: low single digit % growth outlook scenarios ▪ France: low-to-mid single digit % decline ▪ France: flat for FY 25/26 ▪ Poland: low single digit % decline ▪ Poland: low single digit % growth ▪ Continued focus on market share
Slide 16: Delivering on our strategic objectives
Delivering on our strategic objectives Thierry Garnier Chief Executive Officer 16
Slide 17: Leading market positions and attractive growth drivers
Leading market positions and attractive growth drivers Leading banners and c.£160bn Distinctive competitive advantages Strategic growth drivers that attractive markets ‘Powered by Kingfisher’ are delivering share gains Targeting: UK & Diverse Own exclusive TradePoint Ireland brands Trade >£1bn sales
Slide 18: We have grown market share in all key regions
We have grown market share in all key regions by strengthening the core proposition and leveraging our Group strategic growth drivers ▪ Strong price indices maintained ▪ Growing trade customer sales Trade sales penetration 17.9%(1) (+4.9%pts) ▪ High stock availability ▪ Evolving e-commerce propositi
Slide 19: Group strategy for Trade successfully applied in the UK
Group strategy for Trade successfully applied in the UK TradePoint (% of B&Q sales) Trade strategy delivering 23.4% 19.0% ▪ TradePoint sales of £887m, up 6.4% ▪ +1.6%pts higher sales penetration YoY FY 19/20 FY 24/25 ▪ 217 trade counters (+62 vs FY 19/20) ▪ +24% increase in sign-ups for loyalty prog
Slide 20: Trade: strong results in France and Poland
Trade: strong results in France and Poland, leveraging the success of our strategy in the UK Brico Dépôt France ▪ Trade penetration at 12.8%(1) (+4.2%pts) ▪ >80k trade loyalty programme sign-ups since Feb 24 Medium-term target: ▪ Trade service desks in all stores Double trade sales penetration in Fr
Slide 21: Group strategy on e-commerce has delivered strong results in UK banners
Group strategy on e-commerce has delivered strong results in our UK banners B&Q e-commerce sales penetration (%) Focusing on speed and choice 15% Speed – leveraging 1,262 stores to drive faster fulfilment 5% ▪ 93% of the UK’s 1P e-commerce orders were picked in-store ▪ 53 B&Q digital hubs servicing
Slide 22: E-commerce a key driver of share gains in France and Poland
Group e-commerce initiatives a key driver of further market share gains in France and Poland Brico Dépôt France ▪ 5% e-commerce sales penetration (FY 19/20: 2%) ▪ Enhanced website to be launched in FY 25/26 Castorama France ▪ 7% e-commerce sales penetration (FY 19/20: 2%) ▪ Marketplace launched Q1 2
Slide 23: Data and retail media: scaling up in all markets
Data and retail media: scaling up in all markets Data/AI solutions driving sales, margin and cash ▪ £100m sales from personalisation & recommendation engines ▪ Markdown & promo AI solutions supporting clear gross margin improvement at B&Q ▪ Data solutions improving inventory forecasting Next steps E
Slide 24: Screwfix: UK market leader with a proven, high-return model
Screwfix: UK market leader with a proven, high-return model Strong share gains being driven by unbeatable ranges, prices and convenience ▪ >80% of sales from trade customers ▪ c.2% cheaper prices than competitors What we’ve achieved in the last 5 years ▪ 1-minute C&C in all stores ▪ 1-hour delivery
Slide 25: Screwfix France: progressing in line with expectations
Screwfix France: progressing in line with expectations Clear momentum in all KPIs ▪ 54% sales from trade customers (FY 23/24: 48%) ▪ 31% sales from repeat customers (FY 23/24: 26%) ▪ 30 stores (10 openings in FY 24/25) ▪ +2%pts in national brand awareness YoY All store opening cohorts’ sales in line
Slide 26: Update on France
Update on France Thierry Garnier Chief Executive Officer 26
Slide 27: Strong operational progress offset by weak consumer backdrop
Strong operational progress offset by weak consumer backdrop France retail profit £m - evolution YoY 3.3% (42) 2.4% +64 135 (116) +30 95 +24 Structural cost reductions and flex to lower sales Includes impact of higher pay rates, other inflation, and technology investments FY 23/24 Gross profit impac
Slide 28: Clear path to medium-term ambitions in France
Clear path to medium-term ambitions in France 5% to 7% D C B A 2.4% Driven by self-help FY 24/25 Restructure Operating Medium-term Simplify Grow sales Productivity organisation densities at and operating and modernise leverage from France ROP Castorama improved margin target structure both banners e
Slide 29: Building on momentum; accelerating French initiatives (1/2)
Building on momentum; accelerating French initiatives (1/2) Simplify organisation A structure What we’ve done: All centralised activities shifted to individual banners Simplification completed Castorama leadership team strengthened in key areas Head office restructure at Castorama Grow sales densiti
Slide 30: Building on momentum; accelerating French initiatives (2/2)
Building on momentum; accelerating French initiatives (2/2) Productivity and C operating efficiencies What we’ve done: What we’ll do this year: France operating costs down 1.6% in FY 24/25 Deliver further structural cost savings in FY 25/26 FTE reduction of c.500 across both banners Roll out markdow
Slide 31: Summary
Summary Market share gains in all key regions Delivering against strategy with strong trade and e-commerce growth, and accelerating Castorama France restructuring Profit and cash delivered in line or ahead of our expectations Announcing new £300m buyback programme Confident on medium to longer-term
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Slide 33: Appendices
Appendices
Slide 34: Industry-leading OEBs driving competitive advantages
Industry-leading OEBs driving competitive advantages OEB - our private label proposition is 44% of Group sales, with a clear focus on: ▪ Affordability, with a target of being at least 15-30% cheaper than branded alternatives, and develop a strong “opening price point” offer ▪ Innovation through a de
Slide 35: Surveys highlight stability in sentiment towards home improvement
Surveys highlight stability in sentiment towards home improvement Outlook on personal finances indicating Increased intention to undertake repair & early signs of improvement since October maintenance projects in the coming months % of consumers thinking state of personal finances will get worse % o
Slide 36: FY 25/26 technical guidance
FY 25/26 technical guidance(5) Q1 25/26 LFL sales - ▪ Expect an overall adverse impact on Q1 25/26 LFL sales of -0.8%, made up of a leap year comparative impact calendar & leap year of -1.1% and an estimated calendar impact of +0.3%(1) ▪ Sales impact of c.+1% from net space growth excluding Romania,
Slide 37: ADR programme
ADR programme Kingfisher ADRs trade on OTCQX – the premier tier of the U.S. Benefits of ADRs to U.S. investors: over-the-counter market under the following information: Symbol KGFHY Clear and settle according to normal U.S. standards CUSIP 495724403 Ratio 1 ADR : 2 ORDs Offer the convenience of stoc
Slide 38: Contacts
Contacts Investor Relations Media Relations Teneo Tel: +44 (0)20 7644 1082 Tel: +44 (0)20 7644 1030 Tel: +44 (0)20 7420 3184 Email: investorenquiries@kingfisher.com Email: corpcomms@kingfisher.com Email: Kfteam@teneo.com 38
Slide 39: Disclaimer
Disclaimer You are not to construe the content of this presentation 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 presentation or the action you should take, you should consult a person aut
Slide 40: Thank you
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