Kesa profits sharply down
French owner of Darty electrical retail brand continuing to regroup
Kesa, which owns the Darty brand in continental Europe and pulled out of the UK electrical retail market last year when it sold the Comet operation for £2, has reported profits down by nearly half, from 102 million euros to 59 million euros, in the financial year 2011-12.
Kesa’s exit from the UK electrical retail market cost the French company some £100 million in investment commitments and taking on responsibility for Comet’s pension scheme deficit. Kesa is continuing to regroup under what the company called “exceptionally difficult” conditions in Europe. Following the sale of the UK Comet chain for £2, Kesa is selling its Darty Telecom operation and is continuing to close stores in Spain and Italy.
Kesa has also announced that it is to rename the group, which will be called Darty from the beginning of August 2012. David Newlands, chairman, said: "It is clear that market conditions have become more challenging across Europe and the macro-economic outlook remains uncertain." Shareholder dividend is to be cut by half.