Source: Pixabay | Photographer: Bergadder
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The international home improvement company posted resilient performance in H1 2020 despite the pandemic and is currently on track of achieving its strategic priorities.
Here is an in-depth look at how Kingfisher fared throughout the first six months of 2020:
– Sales: decrease of 1.1% year-over-year due to the impact of COVID-19 on the market. However, strong recovery has been achieved in the second fiscal quarter
– E-commerce sales: growth of 164%; this segment now comprises 19% of the Group’s total sales
– Total earnings: £317 million (was £248 million during H1 2019)
– Earnings per share: 15.1p (up 28% compared to H1 2019)
– Free cash flow: £1.042 million (was £204 million during H1 2019)
– Net debt: £1.377 million (was £2,384 million during H1 2019)
– Interim dividend: none will be provided due to COVID-19-related uncertainties
“We delivered a resilient financial performance in the first half of the year, with the adverse impact of COVID-19 in Q1 offset by a strong recovery in Q2. This recovery has continued into Q3 to date, with growth across all banners and categories. The crisis has prompted more people to rediscover their homes and find pleasure in making them better. It is creating new home improvement needs . . . [and] It’s also clear that customers are becoming more comfortable with ordering online.”
Thierry Garnier, Chief Executive Officer
Despite the turbulent market conditions, the company has managed to make significant progress on its business objectives, including:
– Fundamental reorganisation of Kingfisher commercial operating model
– Rollout of own exclusive brands: new kitchens, lighting and storage ranges
– Continually improving operational performance in France
– Accelerated e-commerce growth initiatives in response to COVID-19
– Ensuring a significant liquidity headroom for the Group (access to over £3.7 billion of cash resources as of 18 September 2020, including c. £2.1 billion of cash at bank)
Outlook for fiscal years 2020/2021
In the third quarter, the company expects to achieve a like-for-like sales growth of 16.6%. However, Kingfisher is still hesitant to paint a broader economic picture due to the lasting economic uncertainty. The company has vowed that it will continue to operate safely, provide good product availability, and stick to its business objectives to bolster growth.
Earnings forecast
Upcoming reports
See the full list of upcoming earnings reports for September 28th – October 2nd in the tables below.
Tuesday, September 29th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Micron Technology Inc | Fourth quarter of 2020 |
| United Kingdom | Cairn Energy PLC | Half year 2020 |
| United Kingdom | Ferguson PLC | Full year 2020 |
Wednesday, September 30th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Paychex Inc | First quarter of 2021 |
Thursday, October 1st 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Constellation Brands Inc | Second quarter of 2021 |
| USA | PepsiCo Inc | Third quarter of 2020 |
| USA | Bed Bath & Beyond Inc | Second quarter of 2020 |
| United Arab Emirates | Lamprell Plc | Half year 2020 |
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