By Scott Kanowsky
Investing.com -- Kingfisher PLC (LON:KGF) has reported a sharp dip in first-half earnings, sending shares lower on Tuesday, as a pandemic-era surge in DIY demand showed signs of flagging momentum.
Statutory pre-tax profit at the home supplies group dropped by 30% to £474 million in the six months ended on July 31, reflecting a decline in retail trading income that was only partially offset by a fall in net finance costs.
Sales also contracted by 4.1% compared to the previous period to £6.81 billion, with the owner of the B&Q and Screwfix DIY brands citing strong prior year comparatives stemming from a spike in spending on home improvement products during the pandemic from consumers stuck in their houses.
However, sales remained "resilient" and in line with expectations, according to chief executive officer Thierry Garnier.
The group added that it is working to effectively manage pressures from soaring price inflation and supply chain constraints, but warned that the second half trading outlook is now "more uncertain."