Kitchen furniture group Howdens has reported a growth in half year sales and profit as it looks to take advantage of larger market size.
According to its latest trading update to 11 June 2022, total group sales rose 16.3% to £913.1m from £784.9m in 2021. UK sales jumped 16.4% to £889.3m.
Pre-tax profit for the period resulted at £145m, up 21.6% from £119.2m.
Howdens said that the addressable market for UK kitchen and joinery products is ‘larger than previous estimates at around £11bn’, with the company looking to deliver significant future growth through expanded opportunities.
During the period, Howdens launched 19 new kitchen ranges with more emphasis on higher priced kitchen ranges and ensuring its most popular styles are accessible to all budgets.
Furthermore, the business opened 10 new depots and revamped 34 older depots in the UK, with seven new depots in France and one in the Republic of Ireland.
Howdens also added further investment in manufacturing with new frontal lines and a second architrave and skirting line at its factory, which will be operational in the second half.
Andrew Livingston, Chief Executive said: “Howdens delivered a strong financial performance in the first half, well ahead of pre-COVID levels in 2019, as we continued to manage effectively ongoing inflationary and supply chain pressures. Our sector leading service and well-established and focused growth strategy ensured we continued to outperform the market. Our kitchen and joinery markets are large and attractive and we are prioritising investment in future growth through execution of our strategic initiatives.
“Howdens has good momentum going into the second half of the year which includes our all-important peak trading period. We will continue to manage inflationary pressures according to market conditions to achieve the right balance between pricing and volume. We are confident in our resilient business model while recognising that we will be trading against record revenue comparatives. While watchful of market conditions and consumer sentiment, the Group remains on track with its outlook for the full year.”
