Earnings down at Castorama Rus

Following years of strong growth in the Russian DIY market, its players are currently having to retrench to some extent. The profits of the Kingfisher subsidiary Castorama Rus in the first three quarters of 2014 only amounted to roughly GBP 5 bn, nearly a third down on the comparable period in the previous year (adjusted for currency translation effects). Sales declined by 6.4 per cent to GBP 119 mio, while currency-adjusted sales rose by 13.9 per cent.
Analysts put the decline down to an increase in marketing costs as well as the unfavourable currency situation.