Kingfisher’s profit jumps to £398 million in the fiscal first half

Written by: Wajeeh Khan
September 22, 2020
  • Kingfisher’s profit jumps to £398 million in the fiscal first half.
  • The home improvement retailer says trading remained robust in Q3.
  • The British multinational didn’t declare an interim dividend on Tuesday.

Kingfisher plc (LON: KGF) said on Tuesday that its profit in the first six months of fiscal 2021 came in higher than the same period last year. The company said that demand for home improvement in recent months showed resilience as people spent more time at home due to COVID-19 restrictions.

Shares of the company were reported 2.5% up in premarket trading on Tuesday. The stock continued its rally and gained another 5% on market open. At 285 pence per share, Kingfisher is now more than 25% up year to date in the stock market after recovering from a low of 125 pence per share in March, when the impact of COVID-19 was at its peak. Confused about choosing a reliable stockbroker to trade online? Here’s a comparison of the top few to make selection easier for you.

Kingfisher says trading remained robust in Q3

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Trading, as per Kingfisher, also remained robust in Q3. In the last week of August, Kingfisher announced to have established four new responsible business priorities.

In the six months that concluded on 31st July, Kingfisher reported £398 million pre-tax profit as compared to the year-ago figure of £245 million. In terms of revenue, the home improvement retailer recorded £5.92 billion in the fiscal first half versus £6.00 billion in the comparable period of 2019.

Kingfisher said on Tuesday that the decline in its H1 revenue was attributed to the Coronavirus disruptions that weighed on sales in the first quarter. Signs of recovery, as per the British multinational, were evident in the second quarter.

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Kingfisher didn’t declare an interim dividend

According to Kingfisher, the COVID-19-related uncertainty was still very real. Limited visibility for the future, it said, made it difficult to predict performance in the upcoming months. Consequently, the company’s board decided in favour of not declaring an interim dividend on Tuesday to cushion the economic blow from the ongoing health crisis.

In the fiscal third quarter that concluded on 19th September, Kingfisher posted a 17% annualised growth in its like-for-like sales. In an earlier report published in July, the retailing firm had registered a 21.6% year over year growth in underlying sales in the second quarter.

At the time of writing, the British multination retailer that owns prominent brands like B&Q and Screwfix, has a market cap of £6.00 billion and a price to earnings ratio of 752.65.