The Howden Joinery Group Plc (LON: HWDN) share price fell 5.15% after announcing a trading update for the period that ended 28 October 2023. The UK's largest specialist trade kitchen supplier reported that its revenues during periods 7 to 11 fell 2% when compared to 2022, with the decline rising to 3.3% on a like-for-like basis.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company’s revenues in periods 1 to 6 (H1) rose 0.6% but remained flat like-for-like. The same print compared to 2019 before the COVID-19 pandemic surged 40.2%, falling to 29.2% on an LFL basis.
The Group delivered a strong performance during Periods 7 to 11 despite ongoing macroeconomic challenges. Reported sales for this period were 2.0% lower than in 2022 but marked a substantial 42.5% increase compared to 2019.
The underlying performance closely mirrored Howdens' record sales in the preceding year. It's important to note that reported sales figures do not include strong sales in the final days of the period as these sales encompassed a higher proportion of ‘made-to-order' products, such as Howden's work surfaces and paint-to-order items, which have longer lead times.
The above sales will be recognised in subsequent reporting periods. The record sales also did not include third-party trade sales linked to the Sheridans business since the division was acquired by the Group last year and comprises non-recurring sales.
Sales in international depots accounted for approximately 3% of the Group's total revenue. They performed well during Periods 6 to 11, with a notable 5.7% increase compared to the previous year, despite challenging market conditions.
Andrew Livingston, Howden Joinery’s Chief Executive, said: “Howdens has continued to trade well since the half year and has gained market share. UK depot sales during our peak trading period remained consistent with last year's record performance. This was a significant achievement by our teams, given the macroeconomic headwinds and demonstrated the value of our culture and a differentiated business model. Our balance sheet and cash generation remain strong, and we continue to invest in our strategic initiatives to develop the operating model, which strengthens our competitive advantage.”
Howden Joinery (HWDN) share price.
The Howden Joinery (HWDN) share price fell 5.15% to trade at 612.00p from Wednesday’s closing price of 645.20p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.