Trading statement for the fourth quarter and full year ended 2 February 2002 KINGFISHER REPORTS SALES GROWTH OF 9.9%, BOOSTED BY 17.

Transcription

1 Thursday 14 February 2002 Trading statement for the fourth quarter and full year ended 2 February 2002 KINGFISHER REPORTS SALES GROWTH OF 9.9%, BOOSTED BY 17.0% GROWTH AT B&Q Kingfisher plc, the leading European retail group, today reports that total sales for its continuing operations, excluding the now separated General Merchandise businesses, grew 9.9% to 2.6 billion during the fourth quarter ended 2 February Overall the Group's like-for-like sales increased by 2.1%. For the full year for the continuing businesses, total sales were up 11.1% including the impact of an extra 53 rd week in the previous year to 3 February Like-for-like sales were ahead by 4.1%. Commenting on the Group s sales figures, Sir Geoffrey Mulcahy, Kingfisher's Chief Executive, said: This has been a year of delivery against both our strategic and financial goals. We are now focused on our core strengths with some of the strongest brands in Europe positioned in growth markets. "Our focus on margins, product cost reduction and cost efficiencies has meant we have finished a tough year in good shape. Despite poor consumer confidence levels in Continental Europe and the distraction of successfully introducing the Euro in our stores, the French and German electrical businesses in particular will have achieved solid results in the circumstances. Accordingly, we expect to announce pre-exceptional profit before tax and goodwill amortisation around the upper end of current market expectations." He added: By leveraging our leading market positions, we expect to continue to perform well relative to our competitors during the coming year despite the uncertain economic climate. Our anticipated sales growth is underpinned by new and planned store space and our focus remains on costs and cash control along with the turnaround of German electricals. We remain committed to the objective we published in last year s preliminary results announcement of achieving average annual adjusted earnings growth of at least 10% over the next five years.

2 Home Improvement B&Q once again boosted the sector's performance with UK total sales growing by 17.0%, up 6.3% on a like-for-like basis. During the period, demand slowed in early January before picking up towards the end of the month. After the exceptional double-digit levels achieved for the preceding three quarters, the quarter s overall like-for-like sales growth was at a more normal level. In France, Brico Depôt continued to out-perform the market, delivering strong like-for-like sales growth. This offset a disappointing performance at the Castorama main chain stores which showed a small decline in like-for-like sales during the period. Electrical and Furniture Similar to the trends seen in the third quarter, the UK saw stronger like-for-like sales growth in the fourth quarter than France. Comet grew total sales by 9.2%, up 4.7% on a like-for-like basis. In France, where markets have been difficult all year, the strongest performer was BUT which grew total sales by 11.1% and likefor-like sales by 2.9%. Darty grew total sales by 2.2%, performing well in its core white product and high value brown product categories, with like-for-like sales again flat reflecting reduced levels of demand for mobile phones and PCs. In Germany, the strategy of focusing on profitable sales as part of the overall turnaround plan led to significantly higher gross margins than during the same period last year. Cost control and stock management initiatives all contributed to an improved performance in line with plan, reversing the previous trend. Kingfisher's preliminary results for the year to 2 February 2002 will be announced on Wednesday 20 March end- This news release contains forward-looking statements based on current assumptions and forecasts made by Kingfisher s management. Various known and unknown risks, uncertainties and other factors could lead to substantial

3 differences between the actual future results, financial situation, development or performance of the Group and the estimates given here. The Group accepts no obligation to continue to report or update these forward-looking statements or adjust them to future events or developments. Company profile: Kingfisher plc is one of Europe s leading retailers operating principally in the international Home Improvement, Electrical and Furniture markets and operates some of the best known retail brands in Europe including B&Q, Brico Depôt, Castorama, Comet, Darty and BUT. More than half of the Group s turnover arises overseas, making it the UK s most international retailer. Kingfisher employs around 90,000 people in over 1,300 stores across 16 countries. Further enquiries: Broker and Institutional Enquiries Ian Harding, Director of Investor Relations +44 (0) Media Enquiries Andrew Mills, Director of Corporate Affairs +44 (0) France Graham Fairbank, Head of Corporate Communications +33 (0) Kingfisher plc +44 (0) Kingfisher Website

4 QUARTER 4 TRADING STATEMENT Fourth quarter 2001/02 Sales for the 13 week period ended 2 February 2002 % increase/(decrease) 2001/ /01 Total sales Like-for-like m m % % Home Improvement sector UK (1) % 6.3% France (2) % 2.7% Other (3) % 5.3% Sector total 1, , % 4.9% Electrical and Furniture sector UK (4) % 4.7% France (5) % 0.4% Germany (6) (8.3%) (12.8%) Other (7) (3.2%) (8.1%) Sector total 1, , % (0.8%) Total Continuing Operations (8) 2, , % 2.1% Home Improvement France (EURm) % Electrical and Furniture France (EURm) % Electrical and Furniture Germany (EURm) (11.9%) The like-for-like increases are shown at constant exchange rates Notes: (1) Home Improvement UK comprises B&Q and Screwfix.

5 (2) Home Improvement France relates to domestic French operations only (Castorama France, Brico Depôt, Dubois Matériaux and Amiland). (3) Home Improvement Other includes all Home Improvement activities outside France and the UK. B&Q China included for the 3 months to 31 December 2001 (last year 3 months to 31 December 2000). (4) Electrical and Furniture UK relates to Comet. (5) Electrical and Furniture France comprises Darty and BUT. (6) Electrical and Furniture Germany relates to ProMarkt, included for the 3 months to 31 January 2002 and the 3 months to 31 December 2000 respectively. (7) Electrical and Furniture Other comprises BCC, Vanden Borre and Datart. Datart included for the 3 months to 31 December 2001 and 31 December 2000 respectively. Last year includes sales of 9.1m from Electric City. (8) Sales from operations outside the UK are reported on a calendar month basis.

6 QUARTER 4 TRADING STATEMENT Fourth quarter 2001/02 Sales for the 52 week period ended 2 February 2002 % increase/(decrease) 2001/ /01 Total sales Like-for-like m m % % Home Improvement sector UK (1) 3, , % 10.8% France (2) 1, , % 3.4% Other (3) % 1.0% Sector total 5, , % 7.0% Electrical and Furniture sector UK (4) 1, , % 5.2% France (5) 1, , % 0.7% Germany (6) % (11.1%) Other (7) (5.4%) (8.1%) Sector total 3, , % (0.4%) Total Continuing Operations (8) 9, , % 4.1% Home Improvement France (EURm) 2, , % Electrical and Furniture France (EURm) 2, , % Electrical and Furniture Germany (EURm) 1, , % The like-for-like increases are shown at constant exchange rates Notes: (1) Home Improvement UK comprises B&Q and Screwfix. The financial year to 3 February 2001 included 53 weeks. (2) Home Improvement France relates to domestic French operations only (Castorama France, Brico Depôt, Dubois Matériaux and Amiland). (3) Home Improvement Other includes all Home Improvement activities outside France and the UK. B&Q China included for the 12 months to 31 December 2001 (last year 12 months to 31 December 2000). (4) Electrical and Furniture UK relates to Comet. The financial year to 3 February 2001 included 53 weeks. (5) Electrical and Furniture France comprises Darty and BUT. (6) Electrical and Furniture Germany relates to ProMarkt, included for the 13 months to 31 January 2002 and 12 months to 31 December 2000 respectively.

7 (7) Electrical and Furniture Other comprises BCC, Vanden Borre and Datart. Datart included for the 12 months to 31 December 2001 and the 3 months to 31 December 2000 respectively. Last year includes sales of 35.7m from Electric City. (8) Sales from operations outside the UK are reported on a calendar month basis.