Kingfisher PLC Reports Robust First‑Half Performance and Raises Full‑Year Guidance
Kingfisher PLC (KGF.L), the UK‑listed home‑improvement retailer, released its first‑half results on Tuesday, confirming solid sales growth and a significant lift in profitability. The company’s performance reflects the resilience of its core business model and its ability to navigate the current market environment.
Financial Highlights
| Metric | First Half 2025 | Same Period 2024 | YoY Change |
|---|---|---|---|
| Pre‑tax profit | £3,338 m | £324 m | +1,040 % |
| Adjusted pre‑tax profit (excluding one‑time items) | £368 m | £334 m | +10.2 % |
| Operating profit | £383 m | £?? m | +2.1 % |
| Profit after tax | £237 m | £237 m | 0 % |
| Adjusted profit after tax | £271 m | £243 m | +11.5 % |
| Earnings per basic share (adjusted) | 15.3 p | 13.2 p | +11.5 % |
Key observations:
- Pre‑tax profit surge: The jump from £324 m to £3,338 m in pre‑tax profit is largely attributable to a 0.8 % increase in total revenue (£6,811 m versus £6,756 m) and a higher gross margin of 37.7 % compared with 36.7 % the year before.
- Operating efficiency: Operating profit expanded modestly to £383 m, translating into a 5.6 % operating margin, a slight improvement over the previous year’s 5.5 %.
- Adjusted profitability: After stripping out non‑recurring items, Kingfisher’s adjusted pre‑tax profit rose 10.2 %, while adjusted profit after tax climbed 11.5 %.
The company also maintained a consistent earnings per share (EPS) of 13.4 p, matching the figure reported a year earlier.
Market Reaction
Kingfisher shares closed at £2.52 on the London Stock Exchange, reflecting a +4.65 % performance on a 10‑year investment basis when compared with the price of £2.41 on 22 September 2022. The stock’s current price of £251.30 (as of 18 September 2025) sits well below its 52‑week high of £329.10 and near the 52‑week low of £227.20, suggesting that the market still sees upside potential.
Forward‑Looking Statements
With the first‑half results in hand, Kingfisher has raised its full‑year outlook. While the precise figures are pending in the official filing, the company’s guidance indicates continued momentum in sales and profitability, driven by:
- Strong demand for home improvement and garden products in both the UK and international markets.
- Effective cost management and supply‑chain efficiencies that have preserved margins.
- Strategic investment in digital channels and in‑store experience, aligning with evolving consumer expectations.
Context within the Consumer Discretionary Sector
Kingfisher’s performance is noteworthy against the backdrop of the broader Consumer Discretionary sector, which is currently valued at a price‑earnings ratio of approximately 25.68. The company’s robust earnings growth and solid cash flow generation position it favourably relative to peers. Its market capitalization of roughly £4.47 bn underscores its status as a key player in the home‑improvement arena.
Conclusion
Kingfisher PLC’s first‑half results demonstrate a resilient business model capable of delivering significant profitability improvements while maintaining steady sales growth. The upward revision of its full‑year guidance, coupled with the stock’s attractive valuation metrics, suggests that investors should monitor the company closely for further upside in the coming quarters.