UK building supplier Travis sales dip on weak demand, shares slump

* Travis Perkins says it ​is making progress in passing on manufacturer price rises

* Howden Joinery raised prices across all geographies at the start of ​the ‌year

* Travis reports 1.7% fall in Q1 like-for-like revenue

* Howden Joinery posts 3.7% rise in quarterly revenue

April ⁠28 (Reuters) - British building materials supplier Travis Perkins posted a ⁠dip in first-quarter revenue on Tuesday, hit ​by a subdued construction market but said it was making progress in passing on higher costs to customers through price hikes. Its shares fell nearly 7%, weighed down further by homebuilder Taylor Wimpey which, separately, ​raised its ‌2026 build-cost expectations as higher energy prices threatened to deepen margin pressure.

Travis Perkins, the largest supplier of building materials in the UK, said it has continued to face challenging trading conditions, especially in its merchanting business that caters to homebuilders and infrastructure contractors.

The Northampton, England-based company reported a 1.7% ​drop in first-quarter like-for-like sales as a solid performance at its Toolstation UK arm - which sells kitchen ‌and bathroom fittings as well as hammers - only partly offset weakness in merchanting. Construction suppliers, already grappling with weak activity due to elevated interest rates ‌and subdued housing demand, are facing mounting cost pressures as the Middle East conflict drives up oil and energy prices. Seeking to protect margins already squeezed by weak demand, suppliers like Travis Perkins and ​kitchen specialist Howden Joinery are raising prices to pass on higher costs to customers.

"Against this market backdrop these (merchanting) businesses are making ‌progress in passing through manufacturer price increases and delivering further procurement benefits," Travis Perkins said in a statement.

Price increases and demand for renovations helped kitchen supplier Howden Joinery report separately a 3.7% rise in ⁠first-quarter underlying ⁠revenue.

"We successfully implemented price increases across all geographies at the start ‌of the year, as we continue to optimise the balance between margin and volume," Howden Joinery said in its April ​trading update.

Investec analyst Aynsley ​Lammin said that the price increases at both companies are likely ‌to hurt volume.

"As consumer confidence weakens and people kind of see pressure on their disposable income, they are just going to put off projects," Lammin said.

Travis Perkins

Taylor Wimpey

Howden Joinery