Howden Joinery Group (LON:HWDN) said first-half results met its expectations and that its full-year outlook remains unchanged, as the kitchen and joinery supplier reported higher sales, profit growth ahead of revenue and continued investment in its depot network, manufacturing and digital capabilities.
Andrew, who led the presentation, said the business “continued to advance on all fronts” despite what he described as a challenging marketplace. Group sales increased 3.3% in the first half, or 3.7% on a trading-day-adjusted basis. He said the number of kitchens sold in the U.K. increased and that the company remains positioned to take market share this year.
Profit Growth Outpaces Sales
Chief Financial Officer Jackie Callaway said Howdens’ first-half performance demonstrated the resilience of its in-stock, trade-only model. U.K. revenue rose 3.3% to GBP 991 million and increased 2.3% on a same-depot basis. The price increase implemented at the start of the year contributed about 1.6% to sales.
International depot revenue was EUR 46 million, up 8.5% on an adjusted basis and 7% higher on a same-depot basis. Callaway said sales in France continued to increase, while depots in the Republic of Ireland traded well.
Gross margin was 70 basis points ahead of last year, reflecting the benefit of pricing, productivity, sourcing and manufacturing efficiencies. Underlying EBIT margin was 12.4%, and underlying profit before tax increased 4.3% to GBP 122 million. Underlying earnings per share rose 5.5%, and the underlying effective tax rate was 23%.
Callaway said gross profit was GBP 28 million ahead of last year, with price contributing GBP 16 million and volume and mix contributing GBP 12 million. She said the company offset about GBP 8 million of inflationary increases within cost of goods sold during the first half, supported by its near-sourced and vertically integrated supply chain.
Inflation Guidance Raised, Costs Controlled
Howdens now expects inflationary headwinds of around GBP 40 million across its total cost base in 2026, GBP 10 million higher than previous guidance. Callaway attributed the increase primarily to cost pressures linked to uncertainty in the Middle East, including commodities, labor and property costs.
In the first half, the company said it delivered around GBP 19 million of combined cost savings across operating costs and cost of goods sold. Operating cost increases were held to GBP 21 million, including GBP 9 million of investment in strategic initiatives. Those investments included GBP 5 million related to new U.K. depots, GBP 3 million largely in digital initiatives and additional investment in international operations.
Howdens ended the first half with GBP 333 million of cash. Capital expenditure was GBP 41 million, in line with plan, and Callaway said normalized annual capital expenditure is expected to remain around GBP 125 million. The company’s priorities include manufacturing investment, depot openings and reformats, and digital capabilities.
The board declared an interim dividend of GBP 0.051 per ordinary share, up 2%, payable Nov. 20 to shareholders on the register Oct. 16. Callaway said the dividend policy and the GBP 100 million buyback program remain unchanged following the acquisition of DIY Kitchens.
DIY Kitchens Acquisition Expands Addressable Market
Howdens completed the acquisition of DIY Kitchens on June 23 for an enterprise value of GBP 390 million. Andrew said DIY Kitchens is a vertically integrated online kitchen business selling principally to end users who want to self-manage their kitchen purchase.
He described the business as distinct from Howdens’ relationship-based, trade-only, fully in-stock model and said it expands the group’s access to non-trade kitchen purchasers. DIY Kitchens will operate as a standalone online-only business focused on non-trade customers, with made-to-order products and a small number of destination showrooms.
In response to analyst questions, Andrew said the acquisition is not a change of direction for the Howdens model and said the two businesses serve different customer bases. He said DIY Kitchens acquires customers through word of mouth, social media, natural search and some pay-per-click activity, and he does not expect a major shift toward higher advertising spending.
Depot, Product and Digital Initiatives Continue
Howdens continues to see scope for around 1,000 depots in the U.K., compared with 891 trading at the end of 2025. The company expects to open around 25 U.K. depots in 2026, including two opened in the first half, and reformat around 30 existing depots, 10 of which were completed in the first half.
Andrew said the company’s product lineup is well positioned ahead of peak autumn trading. Sales of products introduced this year and over the prior 18 months represented more than 15% of U.K. product sales in the first half. The company has 23 new kitchens in stock for 2026, focused largely on entry and mid-level price points, along with updates to cabinets, work surfaces, appliances, flooring, doors, joinery and fitted bedrooms.
Digital investment also remains a priority. Howdens recorded about 56,000 new registrations for online account facilities in the first half, and Andrew said around 62% of customers had an online account at year-end. Site visits totaled 11.3 million during the period, and the company’s social media follower base exceeded 800,000.
The company also highlighted its new depot pricing and margin tool, PAM, which is now operating in all U.K. depots. Andrew said the tool helps depot teams make more informed local pricing decisions, particularly outside kitchens.
Outlook Unchanged Ahead of Peak Trading
Management said it continues to expect the U.K. kitchen market to be broadly flat in value terms in 2026, with volumes likely slightly down. Andrew said the company remains prepared for its important Tradefest period, citing product availability, incentives for depot teams and service levels. He said stock availability is in a strong position and that the company expects to maintain primary-to-depot service levels around 99.98% through peak trading.
Howdens expects to end the year with around 80 depots across France, Belgium and the Republic of Ireland. In France, it is trialing a more compact depot format and expects to close up to six depots in suboptimal locations later this year. In the Republic of Ireland, the company opened two depots in the first half and expects to open at least three more in the second half.
Andrew said the business is “on track” with its plans and remains well placed to outperform competitors while continuing to invest in strategic initiatives and return capital to shareholders.
About Howden Joinery Group (LON:HWDN)
Howden Joinery Group Plc is the parent company of Howdens.
Howdens sells kitchens and joinery products to trade customers, primarily small local builders, through a network of over 850 UK depots. The business also operates over 70 depots across France, the Republic of Ireland, and Belgium.
Howdens only sells to the trade – they have the expertise to ensure that our products are fitted to the highest possible standards. Local Howdens depots build trusted partnerships with trade professionals, helping them to exceed their customers’ expectations and allowing their businesses and ours to profit from doing so.
