Howden Joinery Group (HWDN) H1 2024 earnings summary

Executive summary

• Delivered a solid first half in 2024, with group sales up 4.3% year-over-year and market share gains despite a declining UK kitchen market.

• Profit before tax was stable at £112.3m, and gross margin remained sector-leading at 60.8%.

• Continued investment in strategic initiatives, depot expansion, product innovation, digital upgrades, and sustainability progress.

• Strong cash generation supported increased interim dividend and ongoing share buybacks.

• Net Zero plan approved by SBTI; ongoing investments in manufacturing, supply chain, and digital platforms.

Financial highlights

• Group revenue reached £966.3m, up 4.3% year-over-year; UK revenue at £933.7m (+4.3%), international revenue at €38.0m (+4.7%).

• Gross profit was £587.3m, with a gross margin of 60.8% (slightly down from 61.0%).

• Operating profit was £117.2m; profit before tax was £112.3m, in line with last year.

• Basic EPS for H1 was 15.4p, flat year-over-year; interim dividend increased by 2.1% to 4.9p.

• Net cash at period end was £165.5m, after £89m in dividends and £40m in capex.

Outlook and guidance

• Full-year outlook and guidance reaffirmed; market conditions expected to remain broadly unchanged from 2023.

• Capital expenditure for 2024 expected at £125m; working capital to increase due to timing of peak trading and receivables.

• Additional £5m in container costs anticipated in H2 due to higher freight rates.

• H2 to benefit from non-repeat of 2023's 53rd week costs (£17m); confident in delivering growth ahead of markets.