Kingfisher
Note: This is a daily stock update and the information stands true as of 17/09/24, 09:00 CEST.
Company Update:
H1 Sales came in weaker than expected with France lfl sales down 7.2% (vs 5.3% decline expected) and UK and Ireland lfl sales down 0.2% (vs 0.7% decline expected).
However better cost control translates in better operating profit at GBP374m.
The net profit came in 11% better than expected at GBP237m.
Guidance:
The company narrowed up its pretax Net profit guidance to GBP510- 550m (vs 490m-550m) and increased its FCF guidance (GBP410m- 460m).
The company also said that commercial performance was improving in Q3 which is good news.
Expert Opinion:
The management has done a good job in controlling cost. And the improving momentum is a good news. I expect the momentum will continue over the short term. However, we believe this recovery has already been played by the market. On the back of our numbers, the company trades on a PE of 132.8x for 2024 (Jan 25) down to 10x for 2026 (Jan 27). In order to expect more rerating, one needs to see a long lasting improvement in the DIY market both in France and in the UK.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
Company Update:
H1 Sales came in weaker than expected with France lfl sales down 7.2% (vs 5.3% decline expected) and UK and Ireland lfl sales down 0.2% (vs 0.7% decline expected).
However better cost control translates in better operating profit at GBP374m.
The net profit came in 11% better than expected at GBP237m.
Guidance:
The company narrowed up its pretax Net profit guidance to GBP510- 550m (vs 490m-550m) and increased its FCF guidance (GBP410m- 460m).
The company also said that commercial performance was improving in Q3 which is good news.
Expert Opinion:
The management has done a good job in controlling cost. And the improving momentum is a good news. I expect the momentum will continue over the short term. However, we believe this recovery has already been played by the market. On the back of our numbers, the company trades on a PE of 132.8x for 2024 (Jan 25) down to 10x for 2026 (Jan 27). In order to expect more rerating, one needs to see a long lasting improvement in the DIY market both in France and in the UK.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.