Overview of performance in 2022¹

Howdens delivered a strong performance in 2022, with good progress on executing our strategic priorities and further market share gains. During the year our teams have been adept at navigating the challenges of high inflation and supply chain disruption, while supporting our customers with a market leading product range, high stock availability and outstanding customer service.

Our markets are large and fragmented which gives us a long-term opportunity for growth. In response, we are continuing to expand our depot network, improve our product range, optimise our manufacturing and supply chain, and develop our digital capabilities. We see potential for around 1,000 depots in the UK and we are now selectively expanding our business model internationally in France and the Republic of Ireland.

Highlights¹:

• Group revenue of £2,319.0m was 10.8% ahead of last year and 46.4% up on 2019 reflecting the strengths of our local, trade only, in-stock business model.
• UK depot revenue was 10.4% ahead of last year and 7.7% ahead on a same depot basis².
• Maintained our sector leading gross margins at 60.9%, with disciplined pricing recovering cost increases.
• Profit before tax of £405.8m, was 4.0% ahead of 2021 and 55.7% ahead of 2019.
• Good cash generation and the balance sheet remains strong with cash at end of period of £308.0m.
• Proposed final dividend of 15.9p, bringing the total for the year to 20.6p, 5.6% ahead of last year.
• £50m share buyback announced.
• Earnings per share of 65.8p was 23.7% ahead of 2021 benefiting from the previously announced patent box claim, which has been included with the 2022 results.
• Further progress on ESG. Howdens is introducing scienced-based targets in 2023 to reduce our emissions and to achieve net-zero carbon by 2050.

¹ The information presented relates to the 52 weeks to 24 December 2022, the 52 weeks to 25 December 2021 and the 52 weeks to 28 December 2019, unless otherwise stated. The 2022 and 2021 results are presented under IFRS 16, 2019 results have not been restated.

² Same depot basis for any year excludes depots opened in that year and the prior year.

Operational developments in the year

• Achieved another record sales performance in our peak trading period in the autumn.
• Opened 30 new depots in the UK, bringing the total to 808 at period end. Revamped 82 older UK depots during the year with around 50% of UK depots now trading in the updated format.
• Opened 25 new depots in France (and closed 5) bringing the total to 60 at the period end. Established 5 new depots in the Republic of Ireland.
• Further progress on new product introductions including 21 new kitchen ranges. Sales of new products introduced in 2021 and 2022 represented 22% of UK product sales in 2022. 
• Invested in upgrading our manufacturing capacity and capabilities to support future growth. This included solid work surfaces, architrave and skirting products.
• Largely completed the roll-out of the regional cross-docking network (XDC) serving most of our UK mainland depots, improving product availability.
• Invested in our digital platform which saves our trade customers time and money and supports them in optimising the procurement process for end users.
• Achieved 99.7% of depot waste avoiding landfill at our UK depots and switched substantially all them to renewable energy sources. Our top 27 suppliers comprise around 80% of all of our carbon emissions and we are engaging directly with them to reduce our Scope 3 emissions.