Kingfisher plc reported Monday a weak profit in its fiscal year ended January 31, with slightly lower net sales. For the first-quarter to date, like-for-like sales were lower, and the company warned on lower adjusted profit before tax for the current year. The home improvement retailer also maintained its dividend.

Thierry Garnier, Chief Executive Officer, said, “Despite all the macroeconomic and consumer challenges in our markets over the past year, we have stayed focused on our customers and our long-term strategy…. In the short term, while repairs, maintenance and renovation activity on existing homes continue to support resilient demand, we are cautious on the overall market outlook for 2024 due to the lag between housing demand and home improvement demand. Against this backdrop we will remain agile and focused on what is within our control – leveraging our strategy to deliver market share growth, driving productivity gains, and managing our costs and cash effectively.”

Regarding the current trading, the company said its first-quarter LFL sales to date was down 2.3 percent. The company recorded improved sales trend in the UK & Ireland, France and Poland, compared to the fourth quarter. Improved volume trend was recorded in all three categories, such as core, ‘big-ticket’ and seasonal.

For the new year, Kingfisher projects adjusted profit before tax of around 490 million pounds to 550 million pounds. Kingfisher is cautious on overall market outlook given lag between housing demand & home improvement demand.

The company sees around 120 million pounds of additional cost reductions and productivity gains to partially offset higher pay rates and technology investments.

Further, the firm reaffirmed medium-term financial priorities, focused on growth, and cash generation. Sales are projected to grow ahead of markets, and adjusted pre-tax profit would grow faster than sales.

The company also said it is strongly positioned for growth in 2025 and beyond, with confidence in multiple profitable growth drivers over the medium term.

Kingfisher also initiated a new plan to simplify the French organisation and to significantly improve the performance and profitability of Castorama France, which includes restructuring and modernising the store network. The medium-term retail profit margin target for France is of around 5 percent to 7 percent.

Further, the Board has proposed a final dividend per share of 8.60 pence, same as last year. This would result in a proposed total dividend per share for the year of 12.40 pence per share, same as last year.

The final dividend is subject to the approval of shareholders at the Annual General Meeting on June 20.

In the fiscal year ended January 31, Kingfisher’s pre-tax profit for fell 22.3 percent to 475 million pounds from last year’s 611 million pounds.

Post-tax profit was 345 million pounds, down 26.7 percent from a year ago. Basic earnings per share dropped 23.5 percent to 18.2 pence from last year’s 23.8 pence.

Adjusted pre-tax profit was 568 million pounds, compared to 758 million pounds a year ago. Adjusted earnings per share were 21.9 pence, compared to prior year’s 29.7 pence.

Sales for the year dropped 0.6 percent to 12.98 billion pounds from last year’s 13.06 billion pounds. Sales fell 1.8 percent at constant exchange rates, and 3.1 percent on a like-for-like basis.

The company recorded positive UK & Ireland sales, alongside consistent market share gains, while France and Poland sales were impacted by more challenging consumer backdrop.

In the fourth quarter LFL sales were down 4.3 percent, broadly in line with the third quarter’s 3.9 percent drop.

In London, Kingfisher shares were trading at 228.70 pence, down 2.10 percent.

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