From Morningstar: 2024-09-17 07:34:00

Shares in Kingfisher, owner of B&Q and Screwfix, surged over 6% after delivering half-year results in line with expectations, despite a sales slowdown in France. Blue-chip stock now at £3.09. Adjusted pre-tax profit dipped 0.5% to £334 million, while top-line sales fell 1.4%. Free cash flow grew 22% to £421 million.

Management raised profit-before-tax guidance by £20 million, reaching a full-year estimate of £516 million. Free cash flow guidance for the year increased to between £410m and £460m. E-commerce sales penetration rose to 18.3%. France saw a 7.2% sales drop, but UK and Poland saw margin expansion. CEO Thierry Garnier highlights the focus on cost management and inventory.

Morningstar’s equity analyst commends Kingfisher’s management team for cost control, maintaining fair value estimate at 290p. Stock reasonably valued after initial pessimism. Strong growth potential in 2025 due to structural cost reductions and multiple growth avenues over the medium term. CEO sees strong positioning for growth in 2025.



Read more at Morningstar: Shares in Kingfisher Jump Despite French Sales Slowdown