Screwfix and B&Q owner Kingfisher has cut its profit guidance by £10 million as the company faces higher energy prices and increased staff wages.

Kingfisher said that the lower profit guidance also reflects investment in its new Screwfix store in France, which opened earlier this week.

Despite third quarter sales hitting £3.3 billion - 15 per cent higher than pre-pandemic levels - the multinational retailer said it expects 2022 profits of between £730 million to £760 million.

The retailer said that strong energy efficiency product demand had supported DIY sales during the period.

UK sales across Screwfix and B&Q grew by nearly 13 per cent compared to figures recorded before the pandemic, but the company said trading in the quarter was adversely impacted by warmer weather - with total sales compared to last year up by only 0.1 per cent.

While the business reported strong sales, it remains cautious amidst heightened macroeconomic uncertainty and inflationary pressures.

"While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency," said Thierry Garnier, chief executive, Kingfisher.

He continued: “Competitive pricing remains a priority. With our customers facing rising living costs, we are determined to make home improvement affordable and accessible – particularly through our own exclusive brands which represent 45 per cent of our sales."

Share Story: