Profits and revenues climb at kitchen manufacturer despite disruption

Kitchen supplier Howden Joinery Group has flagged up further gains in market share as it releases its 2022 full year results today.

The group, which operates a factory in East Yorkshire and depots across the region, reported revenues of £2.3bn, which was 10.8% ahead of last year and 46.4% up on 2019.

Pre-tax profits were £405.8m – 4% ahead of 2021 and 55.7% ahead of 2019. Howdens’ balance sheet remains strong with cash at end of period of £308m.

Andrew Livingston, chief executive, said: “Howdens delivered a strong performance in 2022, with good progress on executing our strategic priorities and further market share gains.

“During the year our teams have been adept at navigating the challenges of high inflation and supply chain disruption, while supporting our customers with a market leading product range, high stock availability and outstanding customer service.

“Our markets are large and fragmented which gives us a long-term opportunity for growth. In response, we are continuing to expand our depot network, improve our product range, optimise our manufacturing and supply chain, and develop our digital capabilities.

“We see potential for around 1,000 depots in the UK and we are now selectively expanding our business model internationally in France and the Republic of Ireland.”

During the period, Howdens opened 30 new depots in the UK, bringing its total to 808 at period end.

It also revamped 82 older UK depots during the year with around 50% of its British depots now trading in the updated format.

The group adds that it made further progress on new product introductions including 21 new kitchen ranges. Sales of new products introduced in 2021 and 2022 represented 22% of its UK product sales in 2022.

Howdens says it is on track with its plans for 2023 to capitalise on the “significant ongoing opportunity to gain further market share.”

It notes that while it is still early in the new financial year, sales in the first few weeks have been encouraging in the UK.

The group says it continues to seek to maintain a profitable balance between pricing and volume and has implemented a price increase from the start of the year to recover rising input costs.

It has also refreshed its line-up of higher priced kitchens, a segment of the market where Howdens is currently under-represented.

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