Howdens keeps pace with early 2022 record sales levels

Kitchen giant Howdens is keeping pace with record growth seen in early 2022, with sales in line with the soaring success experienced a year ago.

Revenues are on a par with what had been a “buoyant kitchen and joinery market” with unprecedented levels of demand for the East Yorkshire joinery specialist. In a trading update on the first 16 weeks of the year, the company said UK revenue was down 0.2 per cent, or level when taking an extra trading day into account.

The FTSE 250 company said the 2022 period had seen a significant “pull forward of sales” ahead of a price rise to mitigate rising inflation. A further lift was implemented ahead of the new year in a bid to maintain margins.

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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."

Mr Livingston said the company plans 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 in the current year.

Howdens chief executive Andrew Livingston. (Howden Joinery / McCann)

“We are making good progress with our new product introductions for 2023 and ongoing investment in our manufacturing and supply chain capabilities continues,” he said.

Mr Livingston confirmed the company is also halfway through a £50 million share buy back programme.

In its last financial year, Howdens ended with double digit growth on what had been a milestone 2021, when it passed the £2 billion turnover mark. 2022 saw £2.3 billion generated, up 10.8 per cent as home improvement investment poured through after the lockdowns.

The start of this financial year saw a huge manufacturing expansion opened in its home town.

Howdens' share price opened on Thursday 2.4 per cent down from 668.6p to 652.4p, but the day's trading saw a swift recovery, closing up 1.2 per cent at 676.6.

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