Kingfisher plc

Group total sales were GBP 12.9 billion, with like-for-like sales up 1.4% excluding a negative calendar impact of 0.3%. Adjusted profit before tax was GBP 560 million, up 6%, and adjusted EPS was 23.8p, up 15%; excluding last year’s GBP 33 million B&Q business rates refund, profit was up 13%. Gross margin improved by 80 basis points, retail operating margin expanded 30 basis points to 5.7%, and free cash flow was GBP 512 million. For FY26-27, management guided to adjusted PBT of GBP 565 million to GBP 625 million and free cash flow of GBP 450 million to GBP 510 million.

Thierry Garnier framed the year as proof that Kingfisher’s strategy is working, pointing to market share gains across the U.K., France and Spain, stable share in Poland, and strong growth in trade, e-commerce and marketplaces. He emphasized that trade is both revenue- and margin-accretive, that the digital ecosystem is creating a virtuous cycle, and that the group is now targeting GBP 5 billion of trade sales over the medium term. His tone was confident and steady, repeatedly stressing discipline, resilience and continued execution.

Bhavesh Mistry highlighted the financial outcomes: GBP 12.9 billion of sales, GBP 560 million of adjusted PBT, 23.8p adjusted EPS, GBP 512 million of free cash flow, and net leverage of 1.4x. He said gross margin benefits came from group buying and sourcing, marketplace and retail media, while costs were managed through operating model changes, store rightsizing and logistics efficiencies. He also noted GBP 388 million of CapEx, up GBP 71 million, a GBP 74 million working capital inflow, GBP 474 million returned to shareholders, and a new GBP 300 million buyback alongside a 12.4p dividend.

Analysts focused on inventory, CapEx, marketplace profitability, compact store economics, B&Q’s Homebase benefit, and whether guidance assumes low-single-digit like-for-like growth. Management said inventory days fell by 5 this year after a 7-day reduction last year, and that the work is structural, supported by supply visibility tools and better forecasting. On marketplace, they said B&Q marketplace already generated GBP 15 million of retail profit, that marketing spend should decline over time, and that cross-border vendors are a major growth opportunity. On B&Q and guidance, they said Homebase was only one driver, that the business is still growing ahead of the market, and that they can flex margin, cost and investment if trading changes.