The owner of B&Q has reported a boost in revenues over the last quarter as people look to improve energy efficiency in their homes amid the cost-of-living crisis.
Kingfisher, which also owns Somerset-headquartered Screwfix, said sales of loft insulation materials had more than doubled for the three months to October 31, while the DIY market remained buoyant as people continue to work from home.
According to the company, sales of loft insulation roll at B&Q increased by 108% over the period, compared with the same time last year, as customers sought to offset rocketing energy prices. Meanwhile, Screwfix shops reported a 29.1% increase in sales of smart thermostats and kits and a 33.7% rise for thermostatic radiator valves.
Chief executive Thierry Garnier said: “While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency.”
Total sales at Kingfisher grew by 0.6% to £3.26bn over the quarter, compared with the same period last year. Like-for-like sales were 0.2% higher. The company also said it had seen a “good start” to trading in the final quarter of the year, with like-for-like sales growth of 2.8% over the three weeks to November 19.
However, the company reduced its profit guidance marginally due to wage inflation, “slightly higher” energy costs and investments in its Screwfix France opening plan.
The company said it was “managing inflationary pressures effectively” but it expected a profit of between £730m and £760m. It had previously told investors that profits could be as high as £770m.
The firm stressed that it was “mindful” of the economic backdrop for customers and would focus on offering value across a range of price points.
Mr Garnier added: “Competitive pricing remains a priority. With our customers facing rising living costs, we are determined to make home improvement affordable and accessible, particularly through our own exclusive brands, which represent 45% of our sales.
“While we continue to be vigilant against macroeconomic uncertainty, we remain confident in both the resilience of our industry and in continuing to grow ahead of our markets.”
READ NEXT
- Browns Hotel in Dartmouth put up for sale for £1.45m
- Surge in South West firms securing funding deals
- £30m refinancing deal agreed for Yate shopping centre
- Plans for multimillion-pound Gloucestershire business park unveiled
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
