Kingfisher : 2024/25 Kingfisher plc Annual Report and Accounts
KGF.L
2024/25
Annual Report and Accounts
This has been another year of focused delivery of our strategy against a challenging macroeconomic and consumer backdrop. Kingfisher is in its best operational shape for years, and we remain confident about our growth opportunities."
Thierry Garnier
Chief Executive Officer
Who we are
Kingfisher is an international home improvement company. We offer home improvement products and services to consumers and trade professionals through our stores and e-commerce channels.
Our purpose
Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better homes and we strive to help make that happen.
It is an honour and privilege to chair Kingfisher. This is a fantastic business with a clear purpose, passionate colleagues, and compelling growth opportunities to create sustainable value for all our stakeholders."
Claudia Arney Chair of the Board
Contents
Strategic Report
2 Kingfisher at a glance
3 Financial highlights
4 Chief Executive Officer's statement
6 Our strategy
8 Performance against priorities
12 Key performance indicators
14 Business model
16 People and culture
19 Section 172 statement
21 Our stakeholders at a glance
22 Stakeholder engagement
25 Non-financial and sustainability information statement
26 Responsible Business
30 Our response to the Task Force on Climate-related Financial Disclosures
47 Financial review
56 Trading review by division
60 Risks
66 Viability statement
68 Going concern
Governance
69 Chair's statement
70 Corporate governance
72 Board of Directors
74 Board composition
75 Board activities
76 Board effectiveness
77 Nomination Committee report
81 Responsible Business Committee report
83 Audit Committee report
88 Directors' remuneration report
120 Directors' report
123 Statement of directors' responsibilities
Financial Statements
124 Independent auditors' report
135 Consolidated income statement
136 Consolidated statement of comprehensive income
137 Consolidated statement of changes in equity
138 Consolidated balance sheet
139 Consolidated cash flow statement
140 Notes to the consolidated financial statements
190 Company balance sheet
191 Company statement of changes in equity
192 Notes to the Company financial statements
202 Group five year financial summary
Other Information
203 Shareholder information
205
Glossary
1
Kingfisher at a glance
Our strategic principles
Kingfisher banners are not the same. This is a strength.
We have a clear vision to build customer propositions for the future.
We help 'power' our banners as a Group.
Where we operate
We are human, agile and lean.
Kingfisher operates in eight countries across Europe under banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint and Koçtaş.
Over 1,900
stores
Over 76,000 5, 6 colleagues
1,2621
UK & Ireland
2503
France
Over 3,700
suppliers across 70 countries
107
Poland
28
Spain
2622
Turkey
314
Romania
3
Portugal
All figures on this page relate to the year ended 31 January 2025.
1.
B&Q 310, Screwfix 952.
Our corporate website:kingfisher.com
2. Our banner in Turkey, Koçtaş, is operated as a 50% joint venture. Store figure as of 31 January 2025.
3. Castorama 94, Brico Dépôt 126, Screwfix 30.
4. Sale expected to complete during first half of FY 25/26, as announced on 18 December 2024.
5. Turkey joint venture included.
6. Total, not full-time equivalent.
2 Kingfisher 2024/25 Annual Report and Accounts
Our Responsible Business website:kingfisher.com/responsible-business
Free cash flow2
Net cash flows from operating activities Net debt2
£511m
£1,302m
£(2,015)m
2023/24: £514m
2023/24: £1,321m
2023/24: £(2,116)m
Total dividend3
Net debt2 to Adjusted EBITDA2
12.40p
1.6x
2023/24: 12.40p
2023/24: 1.6x
1. Variance in constant currency.
2. Alternative Performance Measure (APM). See the Glossary on pages 205 to 207 for definitions and reconciliations of APMs.
3. The Board has proposed a final dividend per share of 8.60p (FY 23/24: 8.60p), resulting in a proposed total dividend per share of 12.40p in respect of FY 24/25 (FY 23/24: 12.40p). The final dividend is subject to the approval of shareholders at the Annual General Meeting on 23 June 2025.
Evaluation of our key performance indicators against our strategy can be found on pages 12 and 13 and pages 47 to 55.
Chief Executive Officer's statement
This has been another year of strong strategic delivery against a challenging macroeconomic and consumer backdrop. The strong progress we have made against our objectives is credit to our teams, and I would like to thank all our colleagues across the Group for their efforts and commitment to delivering for our customers.
Business performance
From a financial perspective, we delivered profit and free cash flow for the year in line with or ahead of our guidance. Total sales were down 0.8% on a constant currency basis to £12,784m, adjusted profit before tax was down 7% to £528m and we delivered strong free cash flow of £511m. Importantly, for the first time in over six years, we grew our market share at the same time in all our key regions.
In the UK & Ireland, we saw like-for-like (LFL) sales growth of 0.2%, with market share gains at B&Q supported by strong e-commerce and TradePoint sales, and market share gains and a positive LFL performance at Screwfix. In France, a 6.2% reduction in LFL sales reflected the subdued consumer backdrop, although both Castorama and Brico Dépôt performed ahead of the market. In Poland, LFL sales were broadly flat (-0.1%), which was ahead of the market, supported by a stable consumer environment and strong trade customer initiatives.
Looking across our categories, our core business (67% of sales) showed continued resilience, with an improving trend through the year, driven by repair, maintenance and renovation activity on existing homes. Big ticket (15% of sales) reflected weaker trends across the market, but there were encouraging trends in Q4. Seasonal (18% of sales) was impacted by unfavourable weather, particularly in Q2.
Strategic progress
We made rapid progress in the year against our strategic priorities, with a particular focus on growing our trade business and accelerating our e-commerce capabilities. Our Group strategy in these areas has been applied successfully in our UK banners, and we are replicating this success in other markets, with positive results.
Developing our trade business
The development of our trade customer proposition across our markets is progressing at pace. Trade customer sales excluding Screwfix were up 53% year-on-year, representing 17.9% of Group sales in January, and up 4.9 ppts since the start of the year.
We now have dedicated trade loyalty programmes in place across our markets, with memberships growing 30% across the year. We have also added further trade-specific ranges to strengthen our product offer, including through own exclusive brands (OEB).
TradePoint at B&Q continues to go from strength to strength, with sales up 6.4% to £887m, now representing 23.4% of B&Q's sales (up 1.6 ppts). This has been supported by the introduction of dedicated 'sales partners' in 44 stores, to strengthen relationships with key customers and grow our share of their spending. Stores with sales partners have seen a c. 5% uplift
in trade customer sales compared to stores without. TradePoint also launched its first mobile app in October 2024, which has already proved popular with customers.
Our trade propositions in France and Poland are also developing rapidly. Brico Dépôt France now has trade service desks and colleagues in all stores and Castorama France is rolling out its dedicated trade zones. Castorama Poland expanded its 'CastoPro' zones to 12 stores, providing dedicated spaces to serve trade customers and bringing together key trade 'grab and go' lines. The business also successfully launched its trade app in December and created 54 dedicated trade sales partner roles.
In 2025/26, our focus will be on continuing to recruit and train trade sales partners in all our markets, accelerating the roll-out of our trade propositions at Castorama France and Brico Dépôt Iberia, expanding 'CastoPro' zones in Poland, and continuing to enhance our trade-specific product ranges and services across all markets.
Our longer-term ambitions in trade are to reach more than £1 billion of sales at TradePoint in the UK & Ireland, double trade sales penetration in France (versus FY 24/25), and achieve trade sales penetration of over 30% in Poland.
Accelerating e-commerce through speed and choice
Our e-commerce sales grew 8.3% on a constant currency basis year-on-year, taking our e-commerce sales penetration to 19%, up 1.6 ppts on last year (and up 11.4 ppts versus FY 19/20). This was driven primarily by the continued success of our marketplace at B&Q, as well as strong online sales growth at Screwfix. Our total Group-wide marketplace Gross Merchandise Value (GMV) reached £327m, up 62% year-on-year.
Our marketplace proposition is now live in all our key markets, after we opened marketplaces at Castorama France in Q1 and at Castorama Poland in Q4. We have seen strong momentum. In January 2025, B&Q's marketplace sales represented 43% of its total e-commerce sales, with over 2.1 million products now available to customers. Brico Dépôt Iberia's marketplace reached 33% e-commerce sales penetration by the end of the year, with Castorama France at 14%. Castorama Poland's new marketplace is also seeing encouraging early results.
Our investment in e-commerce across our banners extends to our app capabilities. App sales represented 36% of total e-commerce sales (FY 23/24: 26%), growing by 41% year-on- year. This was supported by the launch of our redesigned B&Q app and our new TradePoint app. Monthly active app users across the Group increased by 18% year-on-year on average.
Our focus on speed is also paying off, as customers take advantage of our convenient range of fulfilment options, which harness the strength of our store networks. Home delivery sales increased 15% year-on-year, while click & collect orders rose 5%, accounting for 65% of total e-commerce sales and 88% of first-party e-commerce orders.
Sales via Screwfix Sprint, the banner's rapid one-hour delivery service, grew by over 40% year-on-year, and the service now covers c. 60% of the UK population. Screwfix and B&Q also partnered with Deliveroo in the year to offer 30-minute home delivery services on a limited range of products from selected stores, with encouraging customer uptake.
At the same time, our retail media offering is building momentum, with capabilities now live in the UK, France and Poland. More than 500 vendors are now engaging in over 2,400 live campaigns on a monthly basis (up 167% year-on-year), with very high returns on advertising spend, at B&Q, Castorama France and Brico Dépôt France.
In 2025/26, our focus will be on accelerating the onboarding of cross-border vendors to all our marketplaces. We will also start click & collect for marketplace orders in our stores at B&Q, and develop new marketplace functionalities such as complex promotions. In retail media, we will launch our offer at Screwfix during the year, and test in-store campaigns across the Group.
Our longer-term ambitions remain: for e-commerce to reach 30% of our sales, one third of which from marketplace; and for retail media income to reach up to 3% of the Group's total e-commerce sales.
Delivering on our plan to improve performance at Castorama France
Another important priority for us has been executing our plan to improve the performance and profitability of Castorama France. We are accelerating progress with the restructuring and modernisation of Castorama's lowest performing stores, with work ongoing or completed on a total of 13 stores in the year.
We completed four rightsizings, with previous rightsizings delivering low, double-digit percentage sales density improvements on average versus FY 19/20, significantly higher than the Castorama France average. The other projects comprised six store modernisations, including one comprehensive refit, two franchise tests, and the transfer of one low-performing Castorama store to Brico Dépôt.
In 2025/26, the business is planning to begin work on 11 further stores across these four avenues.
Responsible Business
Our commitment to leading the industry as a responsible business remains.
We have reduced the carbon footprint from our own operations by 66.0% since FY 16/17, exceeding our Scope 1 and 2 target of 37.8% reduction by FY 25/26. We have also reduced our absolute Scope 3 emissions from supply chain and product use by 30.4%, ensuring we are on track to deliver our FY 25/26 target, and announced new vendor decarbonisation targets to further reduce Scope 3 emissions.
Scan the QR code or visitwww.kingfisher.com/fullyearresultsfor more information.
Meanwhile, we reached 53% of Group sales (FY 23/24: 49%) and 63% of OEB sales (FY 23/24: 60%) from our Sustainable Home Products (SHP). We rolled out our Green Star marker to c. 10,000 products across the Group to date, making it easier for customers to identify products with reduced environmental impact.
Finally, and importantly, we remain focused on ensuring our colleagues are engaged and able to realise their full potential. Our Employee Net Promoter Score of 59 improved by two points year-on-year, maintaining our position in the top 5% of worldwide retailers.
Looking ahead
Looking to the year ahead, we know that recent government budgets in the UK and France have raised costs for retailers and impacted consumer sentiment in the near term. With this in mind, we remain focused on what is in our control. This includes progressing our strategic objectives at pace to deliver further market share gains - by further growing our trade customer and e-commerce sales, and delivering on our operational objectives in France.
We are also focused on continuing to manage our gross margin, costs and cash effectively. We are targeting further structural cost and inventory reductions this year, to offset the impact of inflation (including higher pay rates), higher UK employer national insurance contributions and similar taxes in France, and the impact of the new packaging fees regulations in the UK.
I would like to warmly thank colleagues once again for all their hard work and dedication this year. Despite external headwinds, Kingfisher is in its best operational shape for years, and we remain confident about our growth opportunities.
Thierry Garnier
Chief Executive Officer
24 March 2025
Our strategy
Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better homes and we strive to help make that happen.
Put simply, our strategic plan - 'Powered by Kingfisher' - aims to maximise the benefits of combining our distinct banners with the scale, strength and expertise of the Kingfisher Group.
The differentiation of our banners across trade (Screwfix and TradePoint), discounters (Brico Dépôt France and Brico Dépôt Iberia), and more general DIY needs (B&Q; Castorama France; Castorama Poland; Brico Dépôt Romania and Koçtaş) is a unique strength.
1 2
Grow by building on our different banners
Our banners occupy number one and two positions in our key markets. These banners address a diverse range of customer needs, each operating different models tailored to these needs, with clear positionings and plans. Our goal is to grow by building on our different formats, leveraging the power of Kingfisher.
Develop our trade business
Trade customers tend to visit our stores more frequently and spend more than the average retail customer. We are focused on developing our trade customer proposition across our banners through the further roll-out of trade counters, dedicated colleagues, specialised product ranges, new services and loyalty programmes, and an enhanced omni-channel customer experience.
3 4
Accelerate e-commerce through speed and choice
We are committed to offering our customers 'speed' - faster fulfilment of orders through leveraging our store estate - and 'choice' - broader product choice, including via our e-commerce marketplace propositions.
With over one billion customer visits each year across our e-commerce touchpoints, we are also offering suppliers and vendors the opportunity to merchandise their products through retail media.
6 Kingfisher 2024/25 Annual Report and Accounts
Build a data-led customer experience
Powered by Kingfisher's enhanced technology platforms and agile operating model, our banners are leveraging data and artificial intelligence (AI) to build customer-centric tools and solutions, thereby supporting better commercial decision-making and higher productivity, and unlocking significant new sources of sales, profit and cash.
Equally, Kingfisher's scale and resources are a critical source of competitive advantage for our banners, providing product development and supply (through our industry-leading own exclusive brands), access to leading-edge technology, digital and data capabilities, as well as international support, sourcing and buying scale.
We are continuing to invest for growth in multiple areas of the business, underscoring our confidence in the medium to-longer term outlook for home improvement growth in our markets.
5 6
Differentiate and win through own exclusive brands (OEB)
Our OEB product development is a significant source of value and competitive advantage, enabling differentiation from the rest of the market. OEB products also carry a higher gross margin (on average) than branded products. We aim to grow our OEB sales further as we continue to provide simple and innovative solutions to our customers at affordable prices, while also focusing on reducing environmental impacts.
Roll out compact store formats
Compact stores play an increasingly crucial role in addressing the consumer need for convenience, and enable us to further meet demand for fast fulfilment, whether through click & collect or delivery. Through compact store expansion, our ambition is to grow market share, optimise our overall store footprint, and grow sales densities and store profitability.
7 8
Lead the industry in Responsible Business and energy efficiency
We are committed to leading our industry in responsible business practices and energy efficiency. Building on our strong environmental, social and governance (ESG) credentials, our 'Powered by Kingfisher' strategy sets out to maximise our positive impact on the lives of our customers, colleagues, communities, and the planet.
Agile and lean
We have adopted a culture of speed and agility, given the rapidly changing environment in which we do business. We continue to focus on becoming a leaner and more productive business, while aiming to structurally reduce our cost base and lower our same-store net inventory.
Performance against priorities
Strategic priorities
Key progress
Grow by building on our different banners
Develop our trade business
Accelerate e-commerce through speed and choice
Build a data-led customer experience
- Further expanded Screwfix in the UK, Ireland and France.
- Acquired eight former Homebase stores to reopen as B&Q in the UK & Ireland.
- Expanded TradePoint at B&Q.
- Continued expansion of Castorama Poland.
- Loyalty programmes for trade customers now active in all markets.
- Added further trade-specific ranges.
- Launched TradePoint's first app.
- Castorama France started trialling dedicated trade zones in eight stores.
- Brico Dépôt France and Castorama Poland rolled out dedicated trade service desks and launched dedicated apps.
- Continued strong growth of e-commerce penetration.
- Continued success of marketplaces, with propositions now live in the UK, France, Poland and Iberia.
- Retail media capabilities now live in the UK, France and Poland.
- Screwfix Sprint in the UK is now available in over 485 stores, covering c. 60% of UK population.
- Redesigned B&Q app and new TradePoint app launched.
- Screwfix and B&Q partnered with Deliveroo, with encouraging customer uptake.
- Good results from implementing AI-powered product recommendation and personalisation engines across all markets (except Iberia).
- Castorama France expanded visibility of Hello Casto AI virtual assistant.
- Developed innovative visual search technology to help customers find the right products to complete their jobs. The technology is being rolled out at Screwfix and tested at B&Q.
- Implemented in-house supply chain visibility tool in all banners, helping to reduce inventory levels.
-
B&Q leveraging AI-driven promotions, markdowns and clearance solutions, resulting in improved sales, gross margin % and sell-through of stock.
8
Kingfisher 2024/25 Annual Report and Accounts
Disclaimer
Kingfisher plc published this content on April 02, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 02, 2025 at 10:14 UTC.