Howden Joinery H1 revenue beats on price, volume gains
Howden Joinery H1 revenue beats on price, volume gains
Overview
UK kitchen supplier's H1 revenue rose 3.3% yr/yr; adjusted EPS up 5.5%
Company completed acquisition of DIY Kitchens after the period end
£100 mln share buyback to be completed in H2
Outlook
Howden Joinery says full-year outlook for 2026 is unchanged
Company expects UK kitchen market to be level year-on-year in 2026
Company anticipates around £40m of cost headwinds in H2 2026
Result Drivers
PRICE AND VOLUME GAINS - Co said gross profit margin improvement was supported by price increases at the start of the year and higher volumes
EFFICIENCY SAVINGS - Productivity and efficiency savings of £19 mln helped offset cost inflation
STRATEGIC INVESTMENT - Operating expenses rose mainly due to £9 mln of planned investment in strategic initiatives such as new depots, product innovation, and digital platform development
Company press release: ID:nRSW4775Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Miss | GBP 1.03 bln | GBP 1.05 bln (2 Analysts) |
H1 Gross Margin |
| 62.80% |
|
H1 Operating Profit |
| GBP 121.70 mln |
|
H1 Pretax Profit |
| GBP 115.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Howden Joinery Group PLC is GBp976.00, about 25.9% above its July 22 closing price of GBp775.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)