On Monday the 22nd of March Kingfisher released their full year results. The group, which operates about 1,380 B&Q and Screwfix stores in the UK and Ireland, reported adjusted pre-tax profits of £756m in the year to 31 March, up 634% from £103m the previous year.
Overall sales, including the group’s operations in countries such as France and Poland, climbed 7.2% to £12.3bn. Click and collect sales surged 226% and account for more than three-quarters of all e-commerce sales, up from 62% in the previous financial year.
The company announced earlier in March it would be opening 50 Screwfix stores in the UK and Ireland this year, creating 600 new jobs.
“The Covid crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIYers – and we expect these to endure,” said Thierry Garnier, the chief executive of Kingfisher.
“With our strategic progress, we are well positioned to capitalise on these new and positive market trends.”
Byggmax Group’s Board of Directors has decided to update the group’s financial targets, to better reflect the company’s growth ambitions. Byggmax saw a sales increase of 29 per cent from 2019 to 2020. Yesterday, Byggmax Group held a Digital Capital Markets Day. The program covered Byggmax’s position and future ambitions, and also how Byggmax is impacted by some of the biggest trends of our time: discount, the home, and e-commerce.
“We have a strong position and are growing significantly faster than the market, with the fastest growth from e-commerce”, says Mattias Ankarberg, CEO of Byggmax Group. “The new sales target, to reach SEK 10 billion by 2025, clearly shows our ambitions to continue to grow fast. The other targets show our aim to do so with good profitability and dividend to shareholders, while maintaining a strong balance sheet and responsibility for the world around us.”
The updated financial targets are:
Net sales of at least SEK 10 billion 2025 (previous goal: organic growth of 10-15% per year)
Operating profit measured as EBITA of 7-8% (unchanged)
Net debt / EBITDA (excl. IFRS16, EBITDA rolling 12 months) max 2.5x (new target)
Dividend equivalent to at least 50% of net income (unchanged)
The building and home improvement trade ended up growing by 4.8 per cent in 2020, but the growth was not evenly distributed in the industry. There was a clear difference between consumer and professional customer trade. As larger projects went on ice, consumers themselves began to improve the home and yard.
The high levels of new construction, which has been taking place for several years, started to decline in 2020, which was reflected in the professional customer trade. “Consumers, on the other hand, found pleasure in do-it-yourself, which was also reflected in the sales development focused strongly on consumer sales,” says Minna Liuksiala, CEO of the construction and DIY retail association RASI ry.
“Almost all yard and garden products were sold in record terms. Outdoor decking and grills, as well as plants and garden products saw a huge increase in demand. Demand for larger garden investments, such as outdoor hot tubs, also exceeded all expectations” continued Minna Liuksiala.
“Crisis is a period which requires quick action in retaliation to rapid change” – was the unofficial motto of Technosystem’s in 2020.
Analysts had predicted a 40% drop in sales in the DIY market in April and a 20% drop in May. However, the management of the Domingo chain, which has been a DIY player for almost 26 years with 13 shops in 8 cities throughout Siberia, quickly took all possible measures in reaction to the spread of Covid-19.
The outlets were equipped with individual sanitation posts, a rigorous cleaning schedule was introduced, a wide range of socially important products were added to the range, and new standards for the delivery of goods from the online shop were introduced.
Denis Lizunov, General Director of Technosystem Management Company, said “In 9 months of 2020, the company’s turnover grew by 12% and profit by 15% compared to the same period last year. We haven’t stopped moving forward for a minute!”. He continued “Next year we plan to open seven more shops in several cities. Our priority is the mini format, designed to provide maximum comfort and convenience for our customers, and to become a portal to the showcase of our online shop.”
Further to this, from February 2021 customers of Pervomaster will be able to make use of its new mobile app. The app will offer customers a convenient product search using AI elements, the possibility to search for goods via barcode, add goods to cart in one click and see the unique price of goods as well as their own points balance.
In Finland the third quarter of the building and home improvement trade continued to develop positively, with growth reaching 2.5%. The cumulative growth for the first half of the year stands at 6%.
Data from the Finnish DIY Retail Association RASI ry has shown that the soaring growth rates of spring and summer have now leveled off, but growth is continuing.
Minna Liuksiala, CEO of RASI ry, said “The growth of consumer sales and, on the other hand, the slowdown in the growth of professional sales can be seen more and more clearly. The slowdown in new construction has been predicted for a year by a sharp decline in the number of building permits. On the consumer trade side, the largest increase in late summer and early autumn, still over ten percent, was achieved in yard and garden products as well as tools and supplies that consumers use for independent renovation.”
Kingfisher have released their half year results for the six months ended 31 July 2020.
The results demonstrate a resilient performance in H1 with strong sales recovery in Q2 as well as a stronger demand for home improvement across their markets. However, sales were down 1.1% in constant currency, reflecting adverse impact of COVID-19 in Q1 being partially offset by strong recovery in Q2.
In its home market in Great Britain and in Ireland the DIY retailer increased sales by 3.7 per cent (like-for-like: 2.4 per cent) to GBP 2.753 bn (EUR 3.002 bn). Furthermore, E-commerce sales at Kingfisher are up 164%; now representing 19% of total Group sales in comparison with 7% last year.
Chief Executive Officer, Thierry Garnier, said: “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.” He continued “The crisis has prompted more people to rediscover their homes and find pleasure in making them better.”