Financial Data and Key Metrics Changes - Total sales for the group in constant currency decreased by 0.8%, with like-for-like sales declining by 1.7% [5] - Adjusted profit before tax was £528 million, a decrease of 7% compared to the previous year [6] - Free cash flow was strong at £511 million, reflecting good progress in reducing inventory levels [6] - Net debt was just over £2 billion, with net leverage at 1.6x EBITDA [7] - A new £300 million share buyback program was announced, supported by strong free cash flow [8] Business Line Data and Key Metrics Changes - Overall core like-for-like sales were 1.1% lower, with big-ticket categories down 4.5% for the year [9] - In the UK & Ireland, total sales increased by 1.2%, with like-for-like sales up 0.2% [11] - France experienced a like-for-like decline of 6.2%, with total sales of £3.9 billion [13] - Poland's total sales increased by 3.2%, with like-for-like sales marginally down by 0.1% [16] Market Data and Key Metrics Changes - The UK & Ireland market showed resilience, with B&Q and Screwfix gaining market share [11] - France's home improvement market declined by over 7%, impacting sales negatively [13] - Poland's market is expected to see low single-digit percent growth or decline due to geopolitical factors [35] Company Strategy and Development Direction - The company aims to grow its trade business and drive e-commerce growth as part of its "Powered by Kingfisher" strategy [3][4] - Focus areas include cost and cash management, maintaining strong returns, and delivering attractive cash returns to shareholders [4] - The company is committed to enhancing productivity through self-checkout terminals and streamlining head offices [31] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about consumer sentiment in France and the housing market [33] - The outlook for the UK & Ireland home improvement market is expected to be flat to low single-digit growth [33] - Confidence in cash generation capabilities supports the new share buyback program [39] Other Important Information - The company has returned £1.9 billion to shareholders since 2021 through dividends and share buybacks [28] - A strong investment-grade credit rating underpins financial resilience, with total liquidity just under £1 billion [29] Q&A Session Summary Question: Can you talk about the cash generation or the cash consumption of Screwfix France? - Management expressed satisfaction with the repeat purchase rates and emphasized the focus on store sales like-for-like growth rather than rapid expansion [92][94] Question: Is the Screwfix City initiative in addition to the existing target for Screwfix store openings? - Yes, the Screwfix City stores are in addition to the initial target of 1,000 stores, and compact stores are seen as a critical format for DIY in the future [97][98] Question: Can you provide more detail on the logistics reduction? - The company has been implementing new tools for forecasting and reducing logistics space, with plans for further reductions in the coming year [101][105] Question: How do we think about the Turkish profitability for next year? - The expectation is to maintain a similar level of loss as the previous year, with ongoing restructuring efforts in response to the challenging macroeconomic environment [126]
Kingfisher(KGFHY) - 2025 Q4 - Earnings Call Transcript