Howdens hails 'encouraging' start to year as Q1 revenues rise

(Sharecast News) - Trade kitchen and joinery supplier Howden Joinery reported a rise in first-quarter depot revenue on Tuesday as it hailed an "encouraging" start to the year. In the 16 weeks to 14 April, UK depot revenue rose 5.4% on the same period a year earlier and 4% on a same depot basis.

Howdens said that as a result of the additional 53rd week in 2023, there was an earlier start to FY2024 with depots trading in the first week of the current year when they were closed in the prior year. This 'phasing' impact corrects itself at the end of FY2024. Adjusting for this, UK depot revenue was up 1.9% on the prior year and 0.5% on a same depot basis.

In international depots, which make up around 3% of group revenue, there was a 4.6% increase on the same period a year earlier but a 0.1% fall on a same depot basis. Adjusting for the phasing impact mentioned above, this was a 2.2% increase and a 2.5% decline on a same depot basis.

Howdens said that at the start of the new financial year, it has implemented modest price increases across all geographies. These are being retained at "acceptable" levels as it looks to maintain the right balance between margin and volume.

Chief executive Andrew Livingston said: "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.

"We are on track with the outlook for 2024, while mindful of the second half weighting of sales from our Autumn peak trading period."