22 July 2021
|£m (unless stated)||2021||2020||2019||% change vs ‘20||% change vs ‘19|
|- Howden Joinery UK depots||764.1||453.4||638.1||68.5||19.8|
|Gross profit margin, %||61.3||59.4||61.9||190bps||(60)bps|
|Operating profit/(loss) margin, %||15.8||(2.1)||11.9||390bps|
|Profit/(loss) before tax||119.2||(14.2)||78.1||52.6|
|Basic earnings/(loss) per share||16.4p||(1.8)p||10.3p||59.2|
|Dividend per share||4.3p||0.0p||3.9p||10.2|
|Cash at end of period||476.2||253.4||217.1||87.9||119.3|
1 The information presented relates to the 24 weeks to 12 June 2021, the 24 weeks to 13 June 2020 and the 24 weeks to 15 June 2019, unless otherwise stated. 2019 figures are presented on a pre-IFRS 16 basis.
2 Same depot basis for any year excludes depots opened in that year and the prior year. See Financial Review on page 4.
Chief Executive, Andrew Livingston, said:
“Howdens delivered a very strong performance in the first half of 2021, with sales and profit before tax at record levels for the period. Sales were 69% higher than the first half of 2020 (which was materially impacted by COVID-19) and 20% higher
than the comparator period in 2019. Sales of “everyday” and promotional items were particularly strong and our profit, compared with 2019, increased at a faster rate than sales.
“This robust performance demonstrates the strength of our trade only, in-stock, local business model and the benefit of pent-up demand as people choose to spend more on their homes. With that in mind, we now believe there is potential for at least
900 depots in the UK, including 20-25 in Northern Ireland, and plan to start testing the Howdens model in the Republic of Ireland in 2022.
“While we are aware that economic uncertainties persist and also of the strong comparatives we will trade against in the second half, we are encouraged by the progress made so far in 2021 and remain confident in our business model for the future.”
Operational developments in the first half:
We have performed strongly through the first half, ahead of our original expectations as we continue to benefit from our in-stock model and product availability. Whilst we have also seen significant cost inflation resulting from Brexit and COVID-19 related disruption, we have been largely successful in mitigating these with price increases and supply chain management, respectively.
In the first four-week period of H2 (Period 7, to 10 July 2021), total sales at Howdens Joinery UK depots rose by 31.0% on the same period in 2020, and by 29.5% on a same depot basis2. On a local currency basis, European depot sales in Period 7 increased 52.3% compared to the same period last year, and by 48.3% on a same depot basis2.
Compared to 2019, Period 7 sales at Howdens Joinery UK depots rose by 33.8% and by 28.9% on a same depot basis2. On a local currency basis, European depot sales increased 122.6% and by 98.9% on a same depot basis2.
Capital expenditure of around £90m is now expected in 2021, including new and refurbished depots, in-house manufacturing, further investment in digital and maintenance deferred from 2020. We plan to open around 45 new depots in the UK and France during the year, seven of which were opened in the first half. Including relocations, we also intend to revamp around 62 depots to the new format, 28 of which were completed in the first half, and introduce vertically racked product to a further 30 depots without further modifications, eight of which have been completed.
We remain cautiously optimistic in our outlook for the second half and our all-important peak trading period. We are planning around several factors including:
Whilst we are aware of the economic uncertainties that we face and the tough comparators from the second half of 2020, we remain confident in our business model for the future.
2Same depot basis for any year excludes depots opened in that year and the prior year. See Financial Review on page 4.
|Head of Investor Relations +44 (0) 7739 778187|
|Citigate Dewe Rogerson|
|Kevin Smith +44 (0)7710 815924, Ellen Wilton +44 (0)7921 352 851|
Note to editors:
Howden Joinery Group Plc is the parent company of Howden Joinery (Howdens). In the UK, Howdens is engaged in the sale of kitchens and joinery products to trade customers, primarily small local builders, through approximately 755 depots. Around one-third of the products it sells are manufactured in the company’s own factories in Runcorn, Cheshire, and Howden, East Yorkshire. The business also operates a total of around 30 depots in France and Belgium.
There will be an audio webcast for analysts and investors at 08.30 UK time today, 22 July 2021:
For more information see: www.howdenjoinerygroupplc.com.
The presentation can also be heard using the following phone numbers, where there will be the opportunity to ask questions:
|United Kingdom, Local||+44 (0)330 336 9434|
|United States, Local||+1 323-994-2093|