Strong Revenue Growth And Continued Momentum At Howdens

Howden Joinery Group Plc, the UK’s largest specialist trade kitchen supplier, today announces a trading update for the period 11 June 2022 to 29 October 2022 (for its trading periods 7-11). 
1 same depot basis (LFL) for any year excludes depots opened in that year and the prior year.
2 International (in local currency) includes 3 new depots opened in the Republic of Ireland in the period.
3 5 French depots were closed in the first half of 2022.

Current trading

Since the half year results, Howdens has continued to trade strongly with 6.6% year-on-year revenue growth in the UK depots. Revenue was 44.7% higher than the same period in 2019 with the growth rate in the second half increasing from 38.1% in the first half. The international businesses continued to grow strongly with revenue 24.5% higher than the same period in 2021 and up 95.4% on 2019.

Outlook

Against a backdrop of economic uncertainty, we will remain vigilant for any potential headwinds while managing inflationary and supply chain pressures. We are confident in our resilient business model and our well-established strategy. Given the continued momentum in the period, the Group now expects profit before tax to be marginally ahead of the average of published analyst consensus forecasts for FY 20224 .

4 Analysts’ consensus is available on the Howdens corporate website. Profit Before Tax consensus for 2022 is an average of £387m with a range of £373m to £410m. The year ended 30 December 2023 contains an additional (53rd) week of Group operating costs.

Commenting on Howdens’ performance Andrew Livingston, Chief Executive said: “Howdens achieved a record performance in our important peak trading period. We continued to gain market share supporting our customers with a strong product line-up, high stock availability and outstanding service. Trade customers have remained busy into the Autumn with a good pipeline of work, as consumers continue to invest in and improve their homes. Our kitchen and joinery markets are large and attractive, and we are prioritising investment for future growth through our successful strategic initiatives.”

Progress on strategic initiatives

By the end of the period, 17 new UK depots and 13 new French depots have been opened and 64 older UK depots have been refurbished. New product introductions for 2022 included 23 new kitchen ranges which were on sale ahead of our peak trading period. We are continuing to invest in expanding our manufacturing and supply chain capabilities including the roll out of our regional cross-docking facilities (XDC). Digital investments continue to support our trade customers and improve productivity. Investment in the strategy continues to be supported by our strong, ungeared balance sheet. In September, the company signed a new £150 million, five-year, multi-currency revolving credit facility replacing the previous asset backed lending facility. The new facility remains undrawn.

Source : Howdens

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