Challenging macro backdrop weighs on kitchen giant Howden’s first quarter numbers
Trade kitchen company Howden’s has reported UK frevenue up 5.4 per cent year on year in the first quarter of 2024 and revenue from international depots up 4.6 per cent.
However, due to a ‘phasing’ quirk, the company counted an additional fifty-third week in 2023, meaning that depots traded in the first week of the current financial year when they were closed last year. This quirk will correct itself at the end of this financial year, the company said.
With this adjustment, UK depot revenue was up 1.9 per cent year over year and up 0.5 per cent on a same-depot basis (a same-depot basis for any year excludes depots opened in that year and the prior year).
“We have made an encouraging start to the year with trading in line with our expectations. We are also continuing to make good progress in implementing our strategic initiatives which drive profitable growth,” Howdens Chief Executive Andrew Livingston said.
Revenue from international depots – which accounted for around three per cent of group revenue grew by 4.6 per cent year on year but fell by 0.1 per cent on a same-depot basis. When adjusting for the phasing impact, performance was up 2.2 per cent year on year and down 2.5% on a same depot basis
“We are on track with the outlook for 2024, while mindful of the second half weighting of sales from our Autumn peak trading period,” Livingston said.
Despite a challenging macroeconomic environment for kitchens in 2023, the group generated revenue of around £2.3bn and profit before tax of £327.6m. The company’s share price has risen by 42 per cent since July 2023.
Howden’s will open around 30 new depots in the UK this year, 5-10 international depots, and refurbish around 85 older UK depots. Six new UK depots have been opened in the financial year.
The company said it also planned to roll out nine new kitchen ranges this year and offer an “enhanced ‘click and collect’ service in the UK depot network.”