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B&Q owner Kingfisher is warming up to rising orders for insulation products

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B&Q owner Kingfisher is keeping warm as electricity costs skyrocket, driving up orders for insulation products

  • Kingfisher’s net sales increased 1.7% to £3.26 billion at constant exchange rates
  • The gas and electricity bills of households and businesses have risen in the past year
  • Trading was hit last month by unusually warm weather in Britain and France

Kingfisher continues to deliver good sales results as demand for insulation material has increased as a result of rising electricity and gas prices.

The UK’s largest retailer, which runs the B&Q home improvement chain, is reporting an increase in orders for central heating controls, thermostatic radiator valves and smart room thermostats from its Screwfix stores.

This helped boost the group’s total sales by 1.7 per cent at constant exchange rates to £3.26 billion in the three months ended October, despite European countries facing tougher economic conditions.

Weak business: B&Q owner Kingfisher reports an increase in orders for central heating controllers, thermostatic radiator valves and smart room thermostats at its Screwfix outlets.

Kingfisher CEO Thierry Garnier said sales were supported by the pandemic-induced trend to work from home and an impending need among consumers to save money on energy bills.

Energy costs for homes and businesses have risen over the past year due to governments’ gradual easing of lockdowns and travel restrictions and Russia’s full-scale invasion of Ukraine.

As a result, more consumers and businesses have demanded building materials such as insulation and wall panels that can retain more heat, especially in the UK, which has some of the toughest properties in Western Europe.

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Screwfix sales rose 4.9 per cent to £610 million, supported by solid demand from business customers, market share growth and the opening of 19 new stores, including the first two stores in France.

Kingfisher’s performance in Poland was particularly strong, with sales up 10.5 per cent to £447 million, driven by higher orders for new kitchen ranges and meteorological ranges.

The company’s sales grew in all markets, although it acknowledged that October trading was impacted by unusually warm weather in the UK and France.

Demand was further reduced by the state funeral of Queen Elizabeth II and a widespread fuel strike due to fuel shortages at French petrol stations.

Prior to these events, Kingfisher was already starting to see a Covid-induced boom for DIY products as Britons spend more time away from home and cost pressures mount.

Nevertheless, worsening inflationary pressures have led more people to buy goods that could potentially reduce the size of their gas and electricity bills in the long run.

The company also said it had introduced energy-saving services, in part to advise customers on which goods to buy, with B&Q seeing 1,000 bookings in the three days following the programme’s launch.

Garnier commented, “As our customers face a rising cost of living, we are committed to making home improvement affordable and accessible – especially through our own exclusive brands, which account for 45 percent of our sales. stand for.

“While we remain vigilant about macroeconomic uncertainty, we remain confident in the resilience of our industry and the growth of our markets.”

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Despite an optimistic outlook, Kingfisher cut the upper limit of its annual pre-tax profit forecast due to higher energy prices, wage support for employees and investments in the opening of new Screwfix plants in France.

Kingfisher shares were down 1.6 percent on Thursday at 249.5 pence, meaning they’ve lost nearly a quarter in value since the start of the year.

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Source: www.dailymail.co.uk

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