Source: Sharecast
The owner of B&Q, Brico Depot and Castorama said it now expects adjusted pre-tax profit of £595m-£635m (previously £565m-£625m) and free cash flow of £480m-£520m (£450m-£510m). Shares in the company were up 8% in early trade.
Adjusted earnings for the six months to July 31 rose 9.9% to £404m - beating a company-compiled consensus of £372m - driven by gross margin expansion reflecting higher retail profit and aided by a one-off £14m business rates refund in the UK, partly offset by higher net finance costs.
Like for like sales at Screwfix increased by 5.6%. Core sales were softer at B&Q and Brico Depot as summer heatwaves impacted footfall into stores and delayed larger building projects, tiling and painting. Total sales rose 0.8% to £6.86bn, while underlying like-for-like sales rose 0.3%.
Comparable sales for B&Q across the UK and Ireland fell by 1.8% during the second quarter, due mainly to an 8.1% decline in higher-value items, largely caused by reduced demand for bathroom products.
Record summer heatwaves saw surging demand for air conditioning and cooling products, as well as outdoor living ranges, but impacted sales of plants, indoor and outdoor paint and fencing as customers demurred from doing outdoor DIY work in scorching temperatures.
Many chose instead to buy online as B&Q app and internet sales jumped 19.3% in the first half.
Reporting by Frank Prenesti for Sharecast.com