Howden Joinery profit dips but maintains 2024 outlook, shares jump

Kitchen and joinery supplier Howden Joinery Group (LSE: HWDN) saw its annual profit decline in 2023 due to higher expenses, but the company remains confident in meeting its 2024 outlook.

While pretax profit dropped 19% to £327.6 million from £405.8 million, the company attributed part of the decline to a 53rd week in 2023, resulting in £17 million of additional costs. After adjusting for this factor, the pretax profit decrease was 15%.

Despite the profit dip, revenue remained relatively flat, falling only 0.3% to £2.31 billion compared to £2.32 billion in 2022. Howden also announced a 1.9% increase in its annual dividend, bringing the total to 21.0p per share, up from 20.6p.

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Looking ahead, the company expressed confidence in its ability to achieve its 2024 goals. CEO Andrew Livingston highlighted the company’s strong balance sheet, which supports investments in growth initiatives like expanding manufacturing and supply chain capabilities, while also returning capital to shareholders.

While acknowledging the current economic and geopolitical uncertainties, Livingston highlighted the company’s agility and positive start to 2024, leading the board to remain confident in the year’s outlook.

Investors reacted positively to the news, with Howden shares seeing a 7.9% surge in early Thursday morning trading.