21 July 2022
Download the 2022 Half Year Results
2022 Half Year Results Audiocast PresentationDownload the 2022 Half Year Results Presentation |
Results summary
£ millions (unless stated) | 20221 | 2021 | Change vs 2021 | Change3 vs 2019 |
Group revenue | 913.1 | 784.9 | +16.3% | +39.9% |
UK revenue | 889.3 | 764.1 | +16.4% | |
Gross profit | 565.0 | 481.0 | +17.5% | |
Gross profit margin, % | 61.9% | 61.3% | +60bps | |
Operating profit | 149.1 | 124.3 | +20.0% | +91.9% |
Operating profit margin, % | 16.3% | 15.8% | +50bps | |
Profit before tax | 145.0 | 119.2 | +21.6% | +85.7% |
Basic earnings per share, p | 19.6p | 16.4p | +19.5% | |
Interim dividend per share, p | 4.7p | 4.3p | +9.3% | |
Cash at end of period | 249.7 | 476.2 |
1 The information presented relates to the 24 weeks to 11 June 2022, and the 24 weeks to 12 June 2021, unless otherwise stated. The 2022 and 2021 results are presented under IFRS 16, 2019 results have not been restated for IFRS 16.
2 Same depot basis for any year excludes depots opened in that year and the prior year. See Financial Review on page 4.
3 2019 included to show pre-COVID-19 financial performance.
Highlights1
Andrew Livingston, Chief Executive said:
“Howdens delivered a strong financial performance in the first half, well ahead of pre-COVID levels in 2019, as we continued to manage effectively ongoing inflationary and supply chain pressures. Our sector leading service and well-established and focused growth strategy ensured we continued to outperform the market. Our kitchen and joinery markets are large and attractive and we are prioritising investment in future growth through execution of our strategic initiatives.
“Howdens has good momentum going into the second half of the year which includes our all-important peak trading period. We will continue to manage inflationary pressures according to market conditions to achieve the right balance between pricing and volume. We are confident in our resilient business model while recognising that we will be trading against record revenue comparatives. While watchful of market conditions and consumer sentiment, the Group remains on track with its outlook for the full year.”
Operational developments
Current trading and outlook for 2022
The following table shows sales in the first four week period of the second half in absolute terms, on a same depot (LFL) basis2.
Revenue growth (%) | Period 71 vs 2021 | Period 71 vs 2019 | ||
---|---|---|---|---|
% | LFL% | % | LFL % | |
UK revenue | +8% | +6% | +44% | +36% |
International revenue2 | +20% | +13% | +166% | +108% |
1 same depot basis (LFL) for any year excludes depots opened in that year and the prior year.
2 excludes 5 French depots which were closed in H1 2022.
We are making good progress on our strategic initiatives and will continue to invest in these and bring forward some capital investments that underpin our leading market positions and that will drive future earnings. Our capex guidance for the current year increased by £20m to £130m, including the previously announced £10m of one-off costs relating to the purchase of additional land at our Howden manufacturing site.
Howdens has good momentum going into the second half of the year which includes our all-important peak trading period. We will continue to manage inflationary pressures according to market conditions to achieve the right balance between pricing and volume. We are confident in our resilient business model while recognising that we will be trading against record revenue comparatives. While watchful of market conditions and consumer sentiment, the Group remains on track with its outlook for the full year.
For further information please contact | ||
Howdens 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 [email protected] | |
Mark Fearon, Director of IR and Communications Mobile: +44 (0)7711 875070 [email protected] | | |
Results presentation: There will be an in-person analyst and investor presentation at 0830 (UK time) today at UBS, 5 Broadgate, London EC2M 2QS. A live video webcast and slide presentation of this event will be available on https://stream.brrmedia.co.uk/broadcast/62b99c8171203e42c1fbf58c. We recommend you register at 0815 (UK time). For more information see: www.howdenjoinerygroupplc.com. The presentation can also be heard by dialling the phone numbers below: | ||
Location UK-Wide: UK Toll Free: USA USA Toll Free | Phone Number +44 (0) 33 0551 0200 +44 (0) 808 109 0700 +1 212 999 6659 +1 866 966 5335 | |
Quote HOWDEN when prompted by the operator. | ||
The webcast will be recorded and available on our website after the event at: www.howdenjoinerygroupplc.com |
Notes to editors:
1. About Howden Joinery Group Plc
Howden Joinery Group Plc is the parent company of Howden Joinery (Howdens). In the UK, Howdens sells kitchens and joinery products to trade customers, primarily small local builders, through 788 depots. In 2021, the business generated revenues of around £2.1 billion and profit before tax of £390.3 million. Around one-third of the products it sells are manufactured in house at its principal factories in Runcorn, Cheshire, and Howden, East Yorkshire both of which recently achieved carbon neutral status. The business also operates a total of 43 depots in France, Belgium and the Republic of Ireland.
2. Timetable for the interim dividend
The timetable for payment of the proposed interim dividend of 4.7p per ordinary share is as follows:
Ex-dividend date: | 13 October 2022 |
Record date: | 14 October 2022 |
Payment date: | 18 November 2022 |
3. Provisional financial calendar
2022 | |
---|---|
Trading update | 3 November 2022 |
End of financial year | 24 December 2022 |
2023 | |
Full year results | 23 February 2023 |