Kingfisher Stock Down On Weak FY24 Results, Outlook; Plans Buyback

(RTTNews) - Shares of Kingfisher Plc were losing around 14 percent in the trading on the London Stock Exchange, after the home improvement retailer reported lower results in fiscal 2024, and issued fiscal 2025 outlook, expecting between a decline and growth in adjusted profit.

The company also announced a stable dividend and 300 million pounds buyback, and said it remains confident about the medium to longer-term outlook for the sector.

Thierry Garnier, Chief Executive Officer, said, "Looking to the year ahead, the recent government budgets in the UK and France have raised costs for retailers and impacted consumer sentiment in the near term. With this in mind, we remain focused on what is in our control - progressing our strategic objectives at pace to deliver further market share gains, and continuing to manage gross margin, costs and cash effectively. Kingfisher is in its best operational shape for years, and we remain confident about the growth opportunities in our business."

For fiscal 2025, the company expects adjusted profit before tax of approximately 480 million pounds to 540 million pounds.

Further, the Board has proposed a final dividend per share of 8.60 pence, resulting in total dividend per share of 12.40 pence, both same as last year. The final dividend is subject to the approval of shareholders at the Annual General Meeting on June 23.

The company also announced the return of a further 300 million pounds of surplus capital through a share buyback programme. The first tranche of the programme will begin soon.

In fiscal 2024, pre-tax profit was 307 million pounds, down 35.4 percent from 475 million pounds last year. Earnings per share fell to 9.9 pence from 18.0 pence a year ago.

Adjusted pre-tax profit was 528 million pounds, compared to 568 million pounds last year. Adjusted earnings per share was 20.4 pence, compared to 21.6 pence last year.

For the year, sales of 12.78 billion pounds dropped 1.5 percent from 12.98 billion pounds in the prior year. Total sales were down 0.8 percent on a constant currency basis, while like-for-like sales were down 1.7 percent.

LFL sales in UK & Ireland edged up 0.2 percent, while it fell 6.2 percent in France reflecting the soft consumer backdrop.

LFL sales of Big-ticket categories, which accounted for 15% of total sales, dropped 4.4%, reflecting weaker trends across the broader market.

In its fourth quarter, Group LFL sales were lower by 0.8 percent, or lower by 0.1 percent adjusted for calendar impacts.

In London, Kingfisher shares were trading at 240.38 pence, down 14.1 percent.

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