London: Kingfisher, Europe’s biggest home-improvements retailer, said Thursday that annual net profit dropped 24% to $305 million.
Profit after tax for the year to 31 January retreated as Kingfisher experienced “a particularly challenging retail environment,” the group’s chief executive Ian Cheshire said in an earnings statement.
Cheshire added that the group’s “performance in a very difficult Chinese housing market has been worse than anticipated at the start” of its current financial year.
“But we still believe that there is long-term potential in China and have initiated a clear and thorough set of actions to return this business to profitability.”
Kingfisher said it incurred an exceptional loss of £107 million in 2008-2009 relating to a project aimed at turning around fortunes at retail chain B&Q China.
Kingfisher, which also owns the B&Q chain in Britain and the Castorama and Brico Depot stores in France, said group revenue rose almost 11% to £10.03 billion in the year to January compared with the equivalent period in 2007-2008.
Pre-tax profits slumped 75% to £90 million.
The board has proposed a final dividend of 3.4 pence per share, making the