Home improvement retailer Kingfisher said it was concerned that uncertainty around French and British politics could hit future demand after a solid performance in its home market helped it to beat 2016 profit forecasts.
Kingfisher trades as B&Q and Screwfix in Ireland and Britain and Castorama and Brico Depot in France and other markets.
The firm posted an 8.3% rise in annual profit as consumers in Britain continued to spend, offsetting an already weak performance in France.
"Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections," its chief executive Véronique Laury said.
Kingfisher made an adjusted pre-tax profit of £743m in the year to January 31 2017, partly helped by favourable foreign currency movements.
That was ahead of analysts' average forecast of £714m and £686m made in 2015-16.
Total adjusted sales were up 1.7% on a constant currency basis to £11.2 billion, with the UK & Ireland up 2.4% but France down 1.4%.
Last year Laury detailed a strategy to boost Kingfisher's annual profit by £500m from 2021 that will cost £800m over five years to deliver.
The plan involves unifying the firm's product ranges across the business, improving e-commerce capabilities and driving efficiencies.
Kingfisher also plans to return £600m to shareholders over three years through share buybacks. It has so far returned £200m.
Laury said the plan was on track after the first year and reaffirmed the five year financial targets.
"We are well set up for next year and beyond as the level of activity increases," she said.
The firm also said today that Chairman Daniel Bernard will step down in June after eight years in the role and be succeeded by Andy Cosslett, who joins as a non-executive director next month.
