Howdens maintains full-year outlook as H1 sales and profits rise
Profit before tax was in line with last year at £112.3m, up from £111.9m, following a £16m investment in the group’s strategic initiatives over the period
Howdens has welcomed good revenue growth in the first half of the year despite a “challenging” marketplace, as sales rose by 4.3% to £966.3m, with the group maintaining its full-year outlook. Profit before tax was in line with last year at £112.3m, up from £111.9m, following a £16m investment in the group’s strategic initiatives over the period.
According to the group, the majority of cost increases faced due to higher inflation were offset by productivity and efficiency improvements. The group also gained its market share over the period.
Over the period, the group has expanded its network, and plans to open around 30 new UK locations and five new international depots this year. It also completed 26 depot revamps and relocations over the period, and expects to complete around 85 this year.
Looking ahead, its performance since the start of the second half has been in line with management’s expectations, as builder customers “remain busy” despite ongoing challenges in the market.
Following this trading, the group reaffirmed its outlook for 2024.
CEO Andrew Livingston said: “Howdens performance in the first half was encouraging and we gained market share in a challenging marketplace. We continued to invest in our strategic initiatives which is strengthening our differentiated business model and delivering positive results.
“We are focused on the significant growth opportunities in our core UK kitchen and joinery markets. To access these, we are progressing our new depot and reformat programme and making range and product innovations. We are also manufacturing more of what we sell and, alongside the provision of unequalled stock availability, we are adding further digital capabilities to support our trade customers and depot teams.”
He added: “We continue to see opportunities to develop our business model internationally and we’re making good progress in establishing Howdens’ presence, laying the foundations for future success.”
