Howdens sees FY profits at lower end of market expectations

Howden Joinery hailed continued resilient trading on Thursday, but cautioned that full-year results were set to be towards the lower end of market expectations, as it pointed to a "more uncertain macroeconomic outlook".

In an update for the period to 28 October, the trade kitchen supplier said reported sales fell 2% on 2022 and were ahead 42.5% on 2019.

Howdens hailed "strong" sales in the final few days of the period, which included a higher proportion of ‘made-to-order’ products, where lead time are longer. These will be recognised in subsequent periods, it said.

In addition, the group said third party trade sales associated with the Sheridans business it bought last year are non-recurring.

Howdens backed its outlook for 2023 but said it now expects pre-tax profit to be towards the lower end of analysts’ forecasts of between £330m and £365m, given the more uncertain macro picture.

Chief executive Andrew Livingston 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 macro-economic headwinds and demonstrates 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."