Home improvement giant Kingfisher has said its profits are set to reach the “upper end” of targets after it was buoyed by strong Ƶ trading for B&Q and Somerset-based Screwfix.
The retail group said it saw another increase in demand for big ticket items, as it benefited from “favourable weather” and the closure of rival Homebase stores.
It reported that total sales grew by 0.8% to £6.81bn for the six months to July 31, compared with a year earlier, as like-for-like sales rose 1.9%.
Meanwhile, pre-tax profits grew by 4.1% to £338m for the half-year.
Thierry Garnier, chief executive officer of Kingfisher, said: “We delivered a strong first half with high quality underlying like-for-like sales growth of 1.9%, driven by increased volumes and transactions.
“We were encouraged by underlying quarter-on-quarter growth in our core categories, and a third consecutive quarter of growth in big ticket sales.
“Our expectations for our markets for the year remain consistent with what we outlined in March, whilst mindful of mixed consumer sentiment and political uncertainty.
“Combined with our first half performance, this gives us the confidence to upgrade our full year profit and free cash flow guidance and to accelerate our share buyback programme."
Kingfisher said it had started the year with cost headwinds of around £145m, consisting of wage inflation, higher Ƶ employer national insurance contributions, increased social taxes in France and new packaging fees in the Ƶ.
Bu the company said it expected to "fully mitigate" the costs through gross margin and cost initiatives.
The company is targeting adjusted profit before tax for the 2025-2026 financial year of between £480m and £540m, and free cash flow of around £480m to £520m - up from a previous target of £420m to £480m.
Kingfisher is also currently piloting a Ƶ-first marketplace click & collect service at B&Q. The marketplace allows businesses in Britain to sell DIY and home improvement products through the company's platform.
The business said it was targeting 300 stores by the end of October. B&Q marketplace gross merchandise value increased by +45.4% year-on-year to £228m leading to a retail profit contribution of around £7m.
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