Like-for-like sales grow at Kingfisher, but are hit by exchange rates

The British Kingfisher Group recorded sales in the last financial year (ended 31 January 2016) amounting to GBP 10.331 bn. In constant currency terms, this was equivalent to 3.8 per cent more than the previous year, but overall amounted to 2.6 per cent less. Sales on a like-for-like and constant currency basis yielded an increase of 2.3 per cent, while retail profit grew by 0.7 per cent (constant currency: 7.4 per cent) to GBP 746 mio.
The increase in sales was attributable among other things to the trend in the British DIY market. Here the group increased its sales by 5.5 per cent to GBP 4.853 bn (like-for-like: 4.4 per cent), although the growth was due primarily to the professional trade distribution channel Screwfix, where sales were up by 26.3 per cent to GBP 1.054 bn. The B&Q DIY channel grew by 1.1 per cent.
On account of exchange rate fluctuations, the French subsidiaries reported a decline of 8.4 per cent to GBP 3.786 bn. In constant currency the increase was 1.2 per cent. Like-for-like sales fell by 0.4 per cent. With growth of 2.5 per cent, the warehouse format Brico Dépôt fared better than the home improvement stores of the Castorama distribution channel, where sales were up by 0.1 per cent.
In Poland, the group's sales were GBP 987 mio, up by 3.3 per cent. The Russian Castorama stores reported an increase of 12.9 per cent to GBP 325 mio, while sales in Spain fell by 3.2 per cent to € 269 mio. Romania, Portugal and Greece together recorded sales of € 111 mio. Sales in Turkey (joint venture with Koçtaş) weren't mentioned in the press release.

On the other hand, the press release underlined the efforts being made to standardise processes within the group across national boundaries and the different distribution channels. These processes include purchasing by the nine buying teams that currently work for the nine operating companies, which together account for a purchasing volume of GBP 7 bn.
"From now on, we are moving to a unified offer, with the same products, presented everywhere in the same way," said the release. "The unified offer will consist of unique (quality and design owned by Kingfisher), core essential (home improvement basics and consumables e.g. batteries and light bulbs) and complementary ranges (needed to complete a project)."
It continued: "We will radically reorganise to operate as one company, moving to one offer and supply chain organisation, with unified global functions for the first time. This new organisational structure will enable us to roll out our unified and unique offer over the next five years."