Bitcoin price today: little changed near $119k ahead of Fed meet, tariff deadline
Investing.com -- Howden Joinery Group Plc (LON:HWDN) shares surged 9.9% on Thursday after the kitchen supplier reported stronger-than-expected first-half results, demonstrating accelerating sales momentum and continued market share gains despite challenging market conditions.
The U.K.-based company posted a 3.2% increase in sales to £997.6 million for the 24 weeks ended June 14, with adjusted sales rising 4.3% when accounting for two fewer trading days compared to the previous year.
Profit before tax grew 4.4% to £117.2 million, slightly ahead of analyst expectations, while basic earnings per share increased 6.5% to 16.4p. The company raised its interim dividend by 2% to 5.0 pence per share.
Howden’s performance was particularly impressive given the company estimates the underlying UK kitchen market continues to decline by low single digits.
The 4.3% adjusted sales growth comprised approximately 1% price inflation and 3% volume growth, indicating significant market share capture from both larger and independent competitors.
"Howdens performed well in the first half, gaining further market share," said Chief Executive Officer Andrew Livingston. "The ongoing investment in our strategic initiatives is strengthening our competitive position, and our current trading performance gives us confidence in achieving our full year plans."
Gross margin improved by 130 basis points to 62.1%, exceeding analyst expectations of around 60.4%. The company attributed this to price increases implemented at the start of the period, ongoing purchasing benefits, and a stronger weighting of kitchens by volume in the overall category mix.
Howden maintained its full-year outlook, expecting EBIT to remain flat YoY at approximately £340 million, despite challenging market conditions.
The company noted that its second-half performance has started in line with expectations, with investors likely gaining confidence that guidance is achievable or potentially conservative given the strong first-half momentum.
The company continues to invest in strategic initiatives, spending £11.0 million in the first half on expanding its depot network, launching new kitchen ranges, and enhancing manufacturing capabilities.
Howden plans to open approximately 25 new depots in the UK this year and reformat around 60 existing locations.