In This Article:
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Group Sales: GBP2.3 billion, in line with the prior year.
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Gross Profit: GBP1.4 billion, with a gross margin of 61.6%.
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Operating Profit: GBP339.2 million, broadly in line with last year.
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Profit Before Tax: GBP328.1 million.
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Operating Costs: Increased by GBP28 million to GBP1.1 billion.
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Same Depot Revenue: Down 1.2% in the UK.
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International Revenue: EUR88 million, up 9.7%.
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Cash Position: Ended the period with GBP344 million, a net inflow of GBP61 million.
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Capital Expenditure: GBP122 million.
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Dividends Paid: GBP116 million.
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Final Dividend: 16.3p, total dividend of 21.2p, an increase of 1%.
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Share Buyback Program: New GBP100 million announced.
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UK Depots: 869 trading at year-end, with 29 new openings.
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International Depots: 78 trading at year-end.
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Manufacturing Capability: 36% of cost of goods sold manufactured in-house.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Group sales increased by 47% compared to 2019, demonstrating strong growth post-COVID.
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Howden Joinery Group PLC (HWDJF) gained market share in the UK, mitigating a decline in the overall kitchen market.
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The company maintained an industry-leading gross margin of 61.6%, showing year-on-year improvement.
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Strong operating cash flow and a robust balance sheet allowed for continued investment in growth and increased dividends.
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A new GBP100 million share buyback program was announced, reflecting confidence in the company's financial health.
Negative Points
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The overall kitchen market is expected to contract in 2025, presenting a challenging environment.
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Operating costs increased by GBP28 million due to ongoing investments, impacting profitability.
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Revenue on a same depot basis was down 1.2% in the UK, indicating challenges in maintaining growth.
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The international division, particularly in France, has yet to reach break-even, with expectations pushed to 2026 or 2027.
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The EBIT margin is at its lowest level in nearly 15 years, highlighting pressure on profitability.
Q & A Highlights
Q: How do you expect the kitchen market and depot sales to perform in 2025 given the current market conditions? A: Andrew Livingston, CEO, noted that while it's early to predict the year's outcome, the company is well-prepared for market challenges. Despite a contracting market, Howden's has managed profitable growth and maintained strong relationships with builder customers. The company is optimistic about its trading plans and expects to continue outperforming the market.