Kingfisher plc

Hard numbers reported: sales including marketplace GMS grew 1.6%; adjusted profit before tax rose 9.9% to GBP 404 million; adjusted EPS increased 16%; free cash flow was GBP 339 million; adjusted EBITDA was GBP 784 million; net leverage was 1.4x. Gross margin contributed GBP 40 million of benefit, while operating cost inflation was GBP 48 million; structural cost reductions were GBP 44 million. Group trade sales were GBP 2.1 billion and e-commerce sales were GBP 1.6 billion. Screwfix like-for-like sales grew 5.6%; Marketplace GMV grew 42% and contributed more than GBP 13 million of retail profit; Retail Media grew 75%. Regional figures included U.K. and Ireland retail profit up 4.9% to GBP 361 million, France retail profit up to GBP 74 million, Poland retail profit up 15.7% to GBP 60 million, and Iberia retail profit up 17% to GBP 13 million. Guidance was raised: adjusted PBT is now expected at GBP 595 million to GBP 635 million, and free cash flow at GBP 480 million to GBP 520 million.

Thierry Garnier said the strategy is gaining momentum, with trade, e-commerce, Marketplace and Screwfix all becoming more important growth drivers. He emphasized that Kingfisher is becoming a stronger and more resilient business by expanding share in trade, improving its digital ecosystem, and pushing own exclusive brands and services. His tone was confident but measured, repeatedly stressing disciplined execution, structural improvements, and continued opportunities ahead.

Bhavesh Mistry said H1 delivered against the financial priorities, with 1.6% sales growth including marketplace GMS, GBP 404 million of adjusted PBT, 16% adjusted EPS growth, and GBP 339 million of free cash flow. He highlighted GBP 48 million of operating cost inflation, offset by GBP 40 million of gross margin benefit and GBP 44 million of structural cost reductions, plus GBP 171 million of capex and GBP 333 million returned to shareholders through dividends and buybacks. He also noted GBP 5 million of working capital inflow, GBP 175 million of the GBP 300 million buyback expected complete by end-December, and an interim dividend of 3.8p per share, in line with last year.

Analysts focused on trade sales partners, gross margin sustainability, bathroom weakness, Poland’s margin recovery, Screwfix’s outperformance, Marketplace profitability, and Screwfix France economics. Management said trade partners could eventually reach 1 to 2 per store in the medium term and that sales per partner will be actively managed through training, incentives, and software. On margins, they said H1 benefited from structural actions, FX, and Romania’s prior-year disposal, while H2 should still benefit from sourcing, Marketplace and Retail Media but face some supplier inflation. On bathroom, they acknowledged the range was not modern enough and said the new Imandra range is being rolled out step by step; on Screwfix France and Poland, they stressed patience and economics rather than store count.