KINGFISHER CRASHES! Profit Plummets and Shares Dive!
SHOCKING REVELATIONS: Kingfisher’s Profits Drop 7% Overnight – Shares Plummet 12%!
In a staggering blow for investors, home improvement giant Kingfisher has reported a jaw-dropping 7% drop in its full-year profit before tax! Just days ago, on March 25th, the shocking news sent shares tumbling a catastrophic 12% as soon as the market opened!
SALES IN FREEFALL: 1.5% Decline Revealed!
As if that wasn’t bad enough, sales dipped by an alarming 1.5% in the year ending January 31, 2025. Investors are reeling as adjusted earnings per share (EPS) nosedived by 5.2%! The owners of household names like B&Q and Screwfix in the UK, and Castorama and Brico Depot across the Channel in France, claim their core categories are holding steady. But can they really be believed?
CEO Thierry Garnier SPILLS the beans: “Recent government budget changes in the UK and France have BACKFIRED, raising costs for retailers and hitting consumer confidence HARD!”
MARKET SHARE STRUGGLE: Is There a Silver Lining?
Hold on! Garnier insists that, for the first time in over six years, they’ve grown their market share across all key regions. But can market share growth REALLY be a consolation prize when profits are plummeting?
CASH FLOW CONUNDRUM: Sturdy or Sinking?
If you’re looking for a glimmer of hope, Kingfisher generated £511 million in free cash flow this past year, a slight drop of just 0.5% from the previous year’s £514 million. And here’s the kicker: the board’s REFUSAL to cut the dividend holds at a solid 12.4p per share, reflecting a yield of 4.4%! But is it too little too late?
DANGEROUSLY PRECARIOUS YEAR AHEAD!
Brace yourselves! The forecast isn’t pretty. The firm anticipates cash flow will plummet to between £420 million and £480 million for 2025-26. But they claim BIG things are coming, aiming to crank it back over £500 million from 2026-27. Can we trust them?
In a bold, but controversial move, Kingfisher just launched a NEW £300 million share buyback. Is this a desperate gamble to keep investors satisfied, or a strategic masterstroke? With a year-end debt of a staggering £2 billion, is this the smart move WE think it is?
THE INVESTMENT CLIMATE: GLOOMY OR GLORIOUS?
Analysts are cautiously optimistic, predicting EPS growth in the upcoming year, even as they acknowledge the profit forecasts are alarmingly uncertain. Could a P/E multiple of 12 to 13 offer enough cushion if uncertainties keep rising?
While share prices may wobble in the short term, could this be the golden opportunity for savvy investors looking beyond today’s turmoil? The clock is ticking, and the stakes have never been higher! Dive into the drama with Kingfisher as they navigate these turbulent waters!
