Last checked at 27 Apr 2023 07:00
Trading update Encouraging start to 2023. Howdens is on track with its outlook for the year.
Howden Joinery Group Plc, the UK's largest specialist trade kitchen and joinery supplier, today announces a trading update for the first four periods of 2023 (16 weeks to 15 April 2023).
Revenue | Change 2023 vs 2022 | Change 2022 vs 2021 | ||
Total % | LFL %1 | Total % | LFL %1 | |
UK depots - P1-2 - P1-4 - P1-6 |
+6.1% (0.2%)
| +4.7% (1.6%)
| +17.1% +21.8% +16.4% | +15.6% +20.1% +13.5% |
International depots2 - P1-2 - P1-4 - P1-6 |
+19.4% +16.8%
|
+7.8% (3.8%)
|
+21.4% +21.8% +18.5% |
+18.9% +24.2% +18.5% |
1 same depot basis (LFL) for any year excludes depots opened in that year and the prior year.
2 International, in local currency, includes five depots opened in the Republic of Ireland during 2022 and five French depots were closed in the first half of 2022. In the UK, year-to-date sales in 2023 were in line with the prior year, and were ahead on an underlying basis after taking into account an additional day of trading and the timing of a price increase last year. In 2023, UK depot revenue was 0.2% lower than the prior year and 1.6% lower on a same depot basis, reflecting very strong prior year revenue comparatives. After adjusting for an additional sales day in 2022, UK revenue was ahead by 1.4% and level on a same depot basis. In 2022, UK results for the first four trading periods (the 16 weeks to 16 April 2022) were exceptionally high with record levels of demand in a buoyant kitchen and joinery market. Additionally, in P4 last year there was a significant pull forward of sales ahead of a price rise implemented at the start of P5, to mitigate rising input cost inflation. UK sales are expected to return to more normal phasing in 2023 and Howdens is on track with its outlook for the year.
Depot revenue in the international businesses increased by 16.8% in local currency and was 3.8% lower on a same depot basis, compared to the equivalent periods last year. After adjusting for an additional sales day in 2022, international revenue was ahead by 17.4% and was 3.3% lower on a same depot basis.
At the start of the new financial year, we have implemented price increases across all geographies, that are being retained at normal levels, as we continue to maintain the right balance between margin and volume, in line with ongoing market conditions.
During 2023, we plan to open around 30 new depots in the UK, around 10 in France and around five in the Republic of Ireland, and will be refurbishing around 80 older UK depots. We are making good progress with our new product introductions for 2023 and ongoing investment in our manufacturing and supply chain capabilities continues. Year-to-date, we have also completed £25 million of the previously announced £50 million share buy back programme.
Commenting on Howdens' current trading Andrew Livingston, Chief Executive said:
"The Group has continued to perform well in the first four periods of 2023 against record prior year comparatives. We have good momentum in the business and our customers remain busy. We are on track with our plans for 2023 while mindful of the second half weighting of our sales, which includes our all-important peak trading period. Our kitchen and joinery markets are large and attractive, and we are continuing to invest in our future growth through our successful strategic initiatives."
For further information please contact | |
Howden Joinery Group Plc | Media Enquiries |
Paul Hayes, CFO Tel: +44 (0) 207 535 1110 | Nina Coad, David Litterick (Brunswick) Tel: +44 (0) 207 404 5959 |
Mark Fearon, Director of IR and Communications Mobile: +44 (0)7711 875070 |
Note to editors:
1. About Howden Joinery Group Plc
Howdens is the UK's number one specialist kitchen and joinery supplier. In the UK, the company sells kitchens and joinery products to trade customers, primarily local builders, through 808 depots. In 2022, the business generated revenues of around £2.3 billion and profit before tax of £405.8 million. Around one-third of Howdens' cost of goods sold are products manufactured in house at its two principal factories in Runcorn, Cheshire, and Howden, East Yorkshire both of which have achieved carbon neutral status. At the end of 2022 Howdens operated from 60 depots in France and Belgium and five depots in the Republic of Ireland.
2. Provisional financial calendar
Annual General Meeting | 4 May 2023 |
Half Year Results | 20 July 2023 |
Trading update | 2 November 2023 |
End of the financial year | 30 December 2023 |
3. Cautionary statement
Certain statements in this announcement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.