Howden Joinery Group Plc · LSE:HWDN
Howden Joinery — H1 2025 Earnings Presentation
83 slides from Howden Joinery's earnings presentation, Jul 24, 2025
Slide 1: 2025 Half Year Results
2025 Half Year Results 24th July 2025
Slide 2: Andrew Livingston, Chief Executive Officer
Andrew Livingston Chief Executive Officer
Slide 3: Business performed well in a challenging marketplace
H1 2025: Business performed well in a challenging marketplace Results met our expectations, on track for 2025 Group sales +3.2 % on H1 2024, +4.3 % trading day adjusted Gained UK market share, mitigating a small decline in size of market Industry leading gross profit margin maintained, balanci
Slide 4: Performance demonstrates strength of our in-stock model
Performance demonstrates strength of our in-stock model founded on local relationships Reflects combination of a strong product line-up, high stock availability, industry leading service levels and a very engaged team Benefits of ongoing investment in customer focussed strategic initiatives Re
Slide 5: Robust business model in markets with significant growth opportunities
Robust business model in markets with significant growth opportunities Market conditions have remained challenging so far this year Well prepared for such market conditions Model capable of delivering sustainable market share gains Addressable UK markets in which we have an established prese
Slide 6: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 6
Slide 7: Financial Review, Jackie Callaway
FINANCIAL REVIEW Max photo Jackie Callaway Chief Financial Officer
Slide 8: Entrepreneurial culture of the business very strong
Entrepreneurial culture of the business very strong Staff enthusiasm and commitment to serving our trade customers high Strategic direction well defined Significant opportunity to generate shareholder value given the size and attractiveness of our markets and Howdens’ differentiated model
Slide 9: Financial highlights
Financial highlights Positive trading momentum in the first half £m H1 2025 H1 2024 % change Ongoing investment in strategic initiatives to drive Sales 997.6 966.3 +3.2% long-term growth and market share gains Underlying sales1 +4.3% Gross profit 619.6 587.3 +5.5% Gross margins ahead through pri
Slide 10: Sales
Sales Further market share gains in the period Group sales (£m) H1 2025 H1 2024 Change UK Same depot basis1 948.9 932.9 +1.7% Continued market headwinds UK Depots opened in previous 2 years 12.9 0.8 961.8 933.7 +3.0% Disciplined and balanced approach to pricing and International 35.8 32.6 +9.8%
Slide 11: Profit before tax
Profit before tax Disciplined pricing and cost control supported continued investment to protect profit growth Disciplined pricing to support margins £m Sourcing efficiencies Operating Strong kitchen mix in first half due to promotions and Costs sales incentives 12 Volume & mix Strategic £11m
Slide 12: Operating expenses
Operating expenses Efficiency savings protected investment for future growth Strategic initiatives investment in: £m New UK depots Other costs Digital tools for trade convenience and productivity Existing NI/ UK NMW 7 498 Other International depots International: France focus on same-depot gro
Slide 13: Cashflow
Cashflow Strong cash generation supports investments and attractive shareholder returns H1 2025 working capital investment: £m H1 2025 H1 2024 • Inventory (+£26m) Opening cash 343.6 282.8 • Payables (+£20m) • Receivables (+£7m) due to higher sales Operating cash flows1 204.3 189.5 Working capital
Slide 14: Earnings per share and dividends
Earnings per share and dividends Delivering sustainable dividend growth and attractive returns to shareholders H1 2025 H1 2024 Change Strong cash generation and robust balance sheet Basic earnings per share 16.4p 15.4p +6.5% Well established capital allocation policy Share buy backs £31.8m - P
Slide 15: Technical guidance for 2025
Technical guidance for 2025 Income statement Impact National Insurance and National Minimum Annualised costs of £18m Wage Foreign exchange sensitivity: +/- €0.01 = £1.8m +/- $0.01 = £0.8m Full year effective tax rate c. 24% Two fewer trading days in H1 2025 Revenue c. £10m lower in H1 2025 One addit
Slide 16: Summary
Summary Positive start to 2025 Ongoing productivity and efficiency savings in a challenging market x Strong balance sheet and cash generation supports investment in strategic initiatives On track with the outlook for the full year 16
Slide 17: Andrew Livingston, Chief Executive Officer
Andrew Livingston Chief Executive Officer
Slide 18: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 19: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 20: Updated depot format
Updated format provides the best working and trading environment and enables us to make productivity and space utilisation gains
Slide 21: Extending the UK footprint
Extending the UK footprint High service levels valued by customers Scope for around 1,000 depots in the UK 869 depots trading at end of 2024 In 2025: Expect to open c.25 new depots in 2025 Three opened in 1st half* * One depot closed in the period 21
Slide 22: Revamps enhance our competitive position
Revamps enhance our competitive position and we are converting more depots to the updated format Depots being converted in 2025 Total of 350 depots reformatted by end of 2024* c.60 revamps in 2025*, completed 14 of these in 1st half 52% By end of 2025: 61% of depots opened in the old format revamp
Slide 23: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 24: Sales of new product (NPI)
In H1 2025: Sales of new product (“NPI”) make a 23% of UK product sales were of significant contribution to our performance: new product introduced in the last Upgraded new product programme in two calendar years* recent years * Two years to end of December 2024 24
Slide 25: Market leading and competitively priced product
Market leading and competitively priced product is a key feature of our model Price featuring prominently again in 2025 For 2025: Emphasis on value for money and choice at all price points Well positioned in all product categories Kitchen NPI makes more colours and styles available to more budgets
Slide 26: Colours for our entry and mid-level ranges
Colours for our entry and mid-level ranges Greenwich Gloss Reed Green 26
Slide 27: Colours for our entry and mid-level ranges
Colours for our entry and mid-level ranges Greenwich Porcelain 27
Slide 28: Colours for our entry and mid-level ranges
Colours for our entry and mid-level ranges Allendale Pebble 28
Slide 29: Colours for our entry and mid-level ranges
Colours for our entry and mid-level ranges Clerkenwell Metallic Bronze 29
Slide 30: Colours for our entry and mid-level ranges
Colours for our entry and mid-level ranges Clerkenwell Metallic titanium 30
Slide 31: Mid-level family
Mid-level family Frome Ash Green 31
Slide 32: Mid-level family
Mid-level family Frome Porcelain 32
Slide 33: Colours for our contemporary premium family
Colours for our contemporary premium family Hockley Reed Green & 33 Textured Dark Oak
Slide 34: Paint to Order service for timber kitchens
Paint to Order service for timber kitchens is growing in popularity and new timber kitchen family added More timber kitchens being sold in Paint to Order colours, which are priced at a premium to stock colours Recently added a new family, Ilfracombe, an in-frame kitchen of classic design Posit
Slide 35: A market leading solid work surface capability
A market leading solid work surface capability Solid worktops often associated with sales of higher priced kitchens Our manufacturing capacity for these products is now amongst the largest in UK Sales have increased again in H1 2025 In 2025, added further decors Total offering of 60 decors
Slide 36: Innovating in other categories
2025: Innovating in other categories Holkham Brushed Aged Brass Swan Neck Pull Out Kitchen Tap Howdens Holdenby Oak Lamona Double Oven Holkham Single Bowl Butler Sink 36
Slide 37: Innovating with own label brands in other categories
2025: Innovating with own label brands in other categories Iseo Antique Brass Rose Handle Warm Oak Dark Oak Como Polished Chrome Handle Range 37
Slide 38: Fitted bedroom sales well ahead of 2024
H1 2025: Fitted bedroom sales well ahead of 2024, and bedrooms represent a growing source of incremental sales and profits Suits skills of customers who fit kitchens High cabinetry content, matching our manufacturing capabilities Developed in-house, using existing infrastructure Year-end 2024: 19
Slide 39: High stock availability is a key component of our offer
High stock availability is a key component of our offer; our service level from primary to UK depots was 99.99% in H1 2025 39
Slide 40: Recent investment in manufacturing
Recent investment in manufacturing has strengthened our competitive position: Increased manufacturing capacity plus broader and new capabilities New kitchen furniture lines at Howden site 2nd skirting and architrave line at Howden site Purpose built facility for Paint to Order kitchens 40
Slide 41: Progressing plans to develop the Runcorn site
Progressing plans to develop the Runcorn site Our plans will give us more capacity, broader capabilities and lower COGS than otherwise would be the case Plans involve : Installing a new high volume machining line and an automated WIP solution to manage storage and dispatch to rigid assembly Exte
Slide 42: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 43: Increased usage of online trade account facilities
H1 2025: Increased usage of online trade account facilities C. 44k new account registrations C. 58% of customers had an online account at the year-end Total user views of trade platform +34% 84% of users looking at their individual and confidential prices Online account holders trade with us m
Slide 44: High levels of engagement with our web platform
H1 2025: High levels of engagement with our web platform and growing social media presence 10.5m site visits #1 for fitted kitchen site visits amongst specialists Page view metrics at consistently high levels 687k followers across leading social media sites 13% up on H1 2024 6.2m monthly engagem
Slide 45: Upgraded Click and Collect service
H1 2025: Increased usage of upgraded “Click and Collect” service for “every day” products, backed by real time stock surety Available to all online account holders Check real time availability of stock on a depot–by-depot basis Review their individual and confidential prices at their selected de
Slide 46: Supporting depots manage customer relationships, digitally
2025: Supporting depots manage their customer relationships, digitally Making our depot account management tools more efficient and productive New account management tool captures information from multiple sources and makes it accessible via a single dashboard Initial functionality enables automat
Slide 47: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International
Slide 48: Sales in France increased
H1 2025: Sales in France increased, following a significant rise in the 2nd half of 2024 Business responding positively to the measures taken to improve existing depot sales performance New highly experienced leadership team Focus on team development Invested in business with enhanced offering
Slide 49: Sales well ahead in the Republic of Ireland
H1 2025: Sales well ahead of last year in the Republic of Ireland; opening more depots in 2025 Market suits our differentiated model Opened for business in 2022, using a similar location strategy to France Supported by UK infrastructure and group digital platform Re do with five new 13 depot
Slide 50: Well-planned on our strategic initiatives
2025: Well-planned on our strategic initiatives as we deliver value to customers across all price points 22 new kitchen ranges in stock well ahead of peak trading Best ever line-up in other product categories Rooster promotional activity and other price initiatives Improvements to service an
Slide 51: On track with our plans and outlook for the full year
2025: On track with our plans and outlook for the full year Market conditions to remain challenging Total kitchen market may well contract again this year Well prepared for the challenges and opportunities ahead Aim to retain a profitable balance between price and volume Maintain competiti
Slide 52: Questions & Answers
Questions & Answers 52
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Slide 54: The UK's #1 Specialist Kitchen and Joinery Supplier
Appendix The UK’s #1 Specialist Kitchen and Joinery Supplier An introduction to Howdens July 2025
Slide 55: UK's leading specialist trade-only kitchen and joinery supplier
We are the UK’s leading specialist trade-only kitchen and joinery supplier 2024 FINANCIAL HIGHLIGHTS ATTRACTIVE END MARKETS % Howdens revenue £2.3bn £339m 61.6% 90% 95% Revenue Operating profit Gross margin Repair Maintenance Residential & Improvement (RMI) 10% 45.6p 21.2p £344m Non-residential 5% N
Slide 56: Helping our trade customers achieve exceptional results
Our business is about helping our trade customers achieve exceptional results CORE STRENGTHS Empowered depot teams support the needs of the local builder Trade only focus and the best local prices. Local delivery model – 85% of customers are less than 5 miles from a Howdens depot. Product lead
Slide 57: A unique business model focused on long-term customer relationships
A unique business model focused on long-term customer relationships and exceptional service Market leading Kitchen An empowered, depot-led business, close to Trade only: focused on our customers’ needs and Joinery product ranges the trade Products immediately Competitive Knowledgeable depot teams to
Slide 58: Our markets are large and attractive
Our markets are large and attractive with significant future growth potential UK market by revenue1 UK market revenue by vendor category1 Contract Trade specialists specialists 27% 10% 34% 29% Independents Retail Bedrooms Howdens Kitchens £2.2bn Joinery £6.0bn £5.2bn £1.2bn £11.2bn* NEW + in 2024 *
Slide 59: Long-term drivers of the kitchen and joinery market
The long-term drivers of the kitchen and joinery market support continued growth Structural drivers Recent trends The UK population could reach nearly 74 million by 2036 More than a quarter of working adults in Great Britain with net migration fuelling the rise. The UK population will (28%) were
Slide 60: Estimated UK kitchen market volumes
Estimated UK kitchen market volumes in 2023 were at the lower end of the longer-term cycle Approx. 15 year average No. of Kitchens Howdens has gained (Millions) market share through the economic cycle Macroeconomic headwinds are persisting into 2025 Howdens’ strategic initiatives continue to i
Slide 61: Major steps to achieve net zero emissions
We have identified the major steps to achieve net zero emissions 61
Slide 62: Revenue growth and sector leading margins
We have delivered revenue growth and sector leading margins Revenue £2.3bn Operating Profit (%) Gross margin (%) 61.6% £0.8bn 56.2% £339m 14.6% £80m 10.3% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 62 62
Slide 63: Sales performance robust versus peers
Sales performance has been robust versus peers Year over year revenue growth (%) Howdens demonstrated greater resilience versus peers 35% 35% …and during the GFC… …during the once COVID-19 again in pandemic... 2023 21% 19% 17% 17% 14% 14% 14% 14% 13% 13% 12% 11% 11% 11% 10% 9% 10% 8% 8% 7% 7% 8% 7%
Slide 64: Initiatives to increase market share and profits
Initiatives to increase market share and profits Depot Evolution Range and Supply Management Digital Development International 64
Slide 65: Extending the UK footprint
Extending the UK footprint Modern working and trading environment Cost effective updated format Scope for around 1,000 depots in the UK versus the 869 trading at year-end Plan to open around c.25 new depots in 2025 In 2018, Howdens developed an updated depot format. It provides an attracti
Slide 66: Converting more depots to the updated format
Converting more depots to the updated format Positive feedback from depot teams and customers ~61%+ of depots opened 76 depots reformatted by end of 2024 in the old format revamped by end of 2025 Investment to be recouped in less than four years Depots motivated to deliver incremental sales (l
Slide 67: Opportunity to win market share in kitchens
A significant opportunity to win market share in kitchens ‘Good’ Entry level (0-£4k) ‘Better’ Mid-ranges (£4-8k) ‘Best’ Higher price £8k+ LOW MED RMS* HIGH RMS* RMS* Greenwich Hockley Frome ~£2.7bn market value market value ~£1.5bn market value market value ~£2.1bn~£1.9bn Witney Clerkenwell Chelford
Slide 68: Good: colours for entry and mid-level ranges
Good (£0 – £4k) Colours for our entry and mid-level ranges Allendale Pebble 68
Slide 69: Better: mid-level family
Better (£4 – £8k) Mid-level family Frome Ash Green 69
Slide 70: Best: extended palette premium family
Best (£8k plus) Extended palette of colours for modern style premium family Ilfracombe 70 Mist & Dove Grey 70
Slide 71: Best: extended palette premium family
Best (£8k plus) Extended palette of colours for modern style premium family Hockley Reed Green & 71 71 Textured Dark Oak
Slide 72: Premium kitchen paint to order capability
Growth initiatives: Premium kitchen paint to order capability Purpose built factory with capacity for 5,000 kitchens a year Facilitates our paint to order initiative for our premium kitchens, now marketed under a single banner, “Classic Timber Kitchens” Industry leading capability for these pr
Slide 73: A market leading solid work surface capability
A market leading solid work surface capability Solid worktops often associated with sales of higher priced kitchens Our manufacturing capacity for these products is now amongst the largest in UK Sales increased again in H1 2025 In 2025, adding further decors with total offering of 60 in plac
Slide 74: Fitted bedrooms available nationwide
Growth initiatives: Fitted bedrooms available nationwide with expanded range Suits skills of customers who fit kitchens High cabinetry content, matching our manufacturing capabilities Bridgemere Dove Grey Greenwich Sandstone Developed in-house utilising existing manufacturing and supply infras
Slide 75: Investing in manufacturing and more vertical integration
We are investing in manufacturing and more vertical integration Increased manufacturing volume Distribution Raunds: 145k pallets 17k SKUs 44m pieces Investment in additional capacity including door frontals, laminated worktops, skirting and architraves Runcorn: Expanded new solid surface capac
Slide 76: XDC: Balancing stock levels and delivery pattern
XDC: Balancing stock levels and the delivery pattern of some lines for best availability Weekly Depots can hold deeper stocks of faster selling lines Simpler and more efficient for depots to: • deliver superior service • improve availability of all products Frees up time and resources spent on
Slide 77: Increased usage of online trade account facilities
H1 2025: Increased usage of online trade account facilities C. 44k new account registrations C. 58% of customers had an online account at the year-end Total user views of trade platform +34% 84% of users looking at their individual and confidential prices Online account holders trade with us m
Slide 78: Upgraded Click and Collect service
H1 2025: Increased usage of upgraded “Click and Collect” service for “every day” products, backed by real time stock surety Available to all online account holders Check real time availability of stock on a depot–by-depot basis Review their individual and confidential prices at their selected de
Slide 79: Sales in France increased
H1 2025: Sales in France increased, following a significant rise in the 2nd half of 2024 Business responding positively to the measures taken to improve existing depot sales performance New highly experienced leadership team Focus on team development Invested in business with enhanced offering
Slide 80: Sales well ahead in the Republic of Ireland
H1 2025: Sales well ahead of last year in the Republic of Ireland; opening more depots in 2025 Market suits our differentiated model Opened for business in 2022, using a similar location strategy to France Supported by UK infrastructure and group digital platform Re do with five new 13 depot
Slide 81: Strong balance sheet and clear capital allocation priorities
We have a strong balance sheet and clear capital allocation priorities Invest in organic Grow a progressive expansion in line and sustainable with the strategy ordinary dividend through the cycle 1 2 Significant shareholder value creation Return surplus cash to 1 shareholders Invest selectively in -
Slide 82: Uses of cash – last 10 years
Uses of cash – last 10 years Howdens has a strong track record of cash generation, investment and capital returns 500 £495m Strong cash generation while investing for future growth £3.5bn £790m Generated in Invested in capex operating cashflow** Established capital allocation policy 400 £811m £6
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