Kingfisher, Europe's biggest home-improvements retailer, said its annual net profit dropped 24% to £209m sterling.
Profit after tax for the year to January 31 retreated as Kingfisher experienced 'a particularly challenging retail environment,' the group's chief executive Ian Cheshire said.
The company said its 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', it added.
Kingfisher said it incurred an exceptional loss of £107m 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 Ireland and 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 the previous year.
Pre-tax profits slumped 75% to £90m.
