Shares of B&Q owner Kingfisher PLC (GB:KGF) soared over 6% today after the company upgraded its profit and cash flow guidance for FY24/25 while reporting its H1 results. The company now expects its adjusted profit before tax to be between £510 million and £550 million, up from the previous range of £490 million to £550 million. Additionally, it has revised its free cash flow guidance upward to the range of £410 million to £460 million, from the previous range of £350 million to £410 million.
Kingfisher PLC is a retail company that specializes in home improvement and décor products, operating through brands such as B&Q, Castorama, Screwfix, TradePoint, and others.
Kingfisher Reports H1 Results
Kingfisher’s overall H1 sales performance was in line with its expectations. The company’s total sales declined 1.4% year-over-year at constant currency, with like-for-like (LFL) sales down 2.4%.
Regionally, UK & Ireland posted a 0.2% drop in LFL sales, with Poland also witnessing a 0.2% decline. Despite weather-related challenges affecting seasonal sales, both markets demonstrated resilience and achieved market share growth across all brands. Meanwhile, France saw a 7.2% drop in LFL sales, reflecting weak consumer demand. Kingfisher’s French chain Castorama is facing challenges, but the company is making steady progress with its restructuring plan for the underperforming stores.
Meanwhile, the company’s pre-tax profits rose 2.3% year-over-year to £324 million and operating profit increased 2% to £374 million.
The company also declared an interim dividend of 3.8p per share, similar to the interim payment of the previous fiscal year.
Are Kingfisher Shares a Good Buy?
Following the results, Jefferies analyst Grace Gilberg reiterated a Hold rating on the stock, predicting a downside of almost 20%.
On TipRanks, KGF stock has received a Hold rating based on five recommendations from analysts. It includes one Buy, three Holds, and one Sell rating. The Kingfisher share price target is 288p, which is 7.28% lower than the current share price.
