Kingfisher’s pre-tax profit jumps to £756 million in fiscal 2021

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Mar 22, 2021
  • Kingfisher’s pre-tax profit jumps to £756 million in fiscal 2021.
  • The home improvement retailer reports £12.34 billion of revenue.
  • Kingfisher plc declares 5.50 pence per share of a final dividend.

Kingfisher plc (LON: KGF) said on Monday that its pre-tax profit in fiscal 2021 posted a significant increase on the back of lower costs that resulted in higher revenue.

Kingfisher shares that you can learn to buy online here jumped over 2.5% in premarket trading on Monday and gained another 3% on market open. The stock is now trading at a per-share price of £3.29 versus a lower £2.75 per share at the start of the year 2021.

Kingfisher reports £12.34 billion of full-year revenue

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Kingfisher said that its full-year pre-tax profit came in at £756 million versus the year-ago figure of a sharply lower £103 million. Its adjusted profit before tax in fiscal 2021 stood at £786 million, compared to the market consensus of £740.1 million. In the previous year, the home improvement retailer had reported £544 million of adjusted pre-tax profit.  

The British multinational saw exceptional adjusting costs worth £30 million in the recently concluded year. In fiscal 2020, such costs had come in at a much higher £441 million. Selling and distribution-related costs, Kingfisher added, were also lower on an annualised basis.

Kingfisher said that it generated £12.34 billion of revenue in fiscal 2021 – an increase from £11.51 billion in the previous year. FactSet Consensus for its full-year revenue was capped at a slightly lower £12.29 billion.

In separate news from the United Kingdom, consumer goods company Reckitt Benckiser expressed plans of offloading its Mead Johnson unit in Greater China for more than £1.44 billion.

Kingfisher declares 5.50 pence per share of a final dividend

The board announced 5.50 pence per share of a final dividend on Monday, which pushed its full-year pay-out up, to 8.25 pence per share. In fiscal 2020, Kingfisher had paid 3.33 pence per share in dividend.

The FTSE 100 listed company expressed confidence that fiscal 2022 started on a positive note. The retailer noted a 24% year over year increase in its comparable sales in Q1. In the prior quarter (Q4), Kingfisher had registered a 16.9% growth in its like-for-like sales.

For the fiscal first half, Kingfisher now forecasts its sales to increase by a little over 10%. The City of Westminster-based company performed fairly upbeat in the stock market last year with an annual gain of roughly 25%. At the time of writing, it is valued at £7.01 billion and has a price to earnings ratio of 45.84.

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