Profit at Kingfisher is expected to decrease further this year after falling 20% in 2022-23 from a pandemic-driven record high the prior year.

Profit at Kingfisher is expected to decrease further this year after falling 20% in 2022-23 from a pandemic-driven record high the prior year.

Thierry Garnier, CEO of the company with subsidiaries B&Q and Screwfix in the UK and Castorama and Brico Depot in France and other markets, said reduced profit estimates in 2023-24 reflected consumer demand difficulties, increased energy and personnel costs, and the earnings blow from rapid development in France.

"Although... February started the year quite well, with a very resilient trend, we are aware of the uncertainties of the year ahead of us," Garnier said during interview on Tuesday.

In the fiscal year ending January 31st, 2023, Kingfisher earned an adjusted pre-tax profit of £758 million, exceeding the company's projection of £730-£760 million but falling short of the £949 million earned in 2021-22.

Constant currency sales declined 0.7% to £13.1 billion, while like-for-like sales fell 2.1%.

Interest rate, inflation, and energy bill increases in 2022 have placed a damper on consumer spending in the UK and Europe.

DIY sales are being boosted by the growing trend of working from home and customer investment in energy-saving devices.

Nevertheless, Kingfisher predicted that unfavourable weather conditions and strong comparable figures in Poland would have an impact in March.

The total dividend remains at 12.40 pence per share, and the business has declared new medium-term financial targets centred on development, cash creation, and larger returns to shareholders.

Following the completion of the present £300 million programme this year, it plans to launch a new share buyback scheme.

(Investing.com, Reuters.com)