Kingfisher Share Price Plunged 5.39% on Its Weak FY 23/24 Results

The Kingfisher plc (LON: KGF) share price plunged 5.39% after releasing its final results for the year ended 31 January 2024. The company reported a decrease in total sales by 1.8% and like-for-like (LFL) sales by 3.1%, with Q4 experiencing an LFL decrease of 4.3%.

The UK and Ireland markets showed positive sales growth and market share expansion. Sales in France and Poland were adversely affected by a challenging consumer environment. There was a gradual improvement in sales volume in primary categories as the effect of retail price inflation began to decrease.

E-commerce sales increased to 17.4% from 16.3% the previous fiscal year, buoyed by significant growth in marketplace sales at B&Q. Adjusted profit before tax (PBT) and free cash flow met the expected guidance. In comparison, statutory PBT fell by 22.3% to £475 million.

The British multinational retailer revealed the Initiation of a new share buyback program valued at £300 million, of which approximately £50 million has already been completed. The proposed total dividend for FY 23/24 remains unchanged at 12.40p per share, consistent with the previous fiscal year.

Kingfisher plans to open up to 40 new Screwfix stores in the UK & Ireland in FY 24/25, aiming for more than 1,000 stores in the mid-term. The company also plans to open up to 15 new Screwfix stores in France for FY 24/25, with a long-term goal of over 600 stores.

The retailer will open 75 new medium-box and compact Castorama stores in Poland over the next five years. The company expects annual sales growth from net space expansion of approximately 1.5% to 2.5%.

The company is enhancing e-commerce by introducing new marketplaces in France and Poland, with ambitions for e-commerce to constitute 30% of total sales, a third of which is expected from high-margin marketplace sales.

The firm is implementing data-driven customer experiences through AI and retail media to increase revenue, profit, and cash flow. Retail media revenues are expected to reach up to 3% of e-commerce sales.

The company is developing the trade business by expanding the trade proposition in the UK, Ireland, France, and Poland. It aims to earn over £1 billion in sales at TradePoint UK & Ireland and double trade penetration in France and Poland in the mid-term.

Kingfisher share price. 

The Kingfisher share price fell 5.39% to trade at 221.85p from Friday’s closing price of 234.50p.