1st Nov 2021 09:10
(Alliance News) - Howden Joinery Group PLC on Monday said it expects annual profit to be around the top end of market forecasts, though the kitchen products provider expects trading patterns to normalise next year.
Howden said its sales continued to benefit from increased home working and pent-up demand from lockdowns in 2020.
The London-based company also said it saw "market leading product availability" while others in the market suffered from shortages.
"These exceptional factors have continued into the second half, resulting in strong sales and profits," Howden explained
In the weeks between June 13 and October 30, what the company calls period seven to period 11, UK sales rose 21% annually on a local currency basis. They were also up 36% from pre-virus levels.
In its international arm, local currency sales were 17% higher yearly, beating pre-pandemic levels by 57%.
Howden now expects pretax profit for its full-year, which concludes on December 25, to be at the upper end of current analyst forecasts. Forecasts range between GBP298 million and GBP360 million.
At best, this would represent a 95% jump from GBP185 million.
Howden added: "The board remains confident in our business model for the future but anticipates returning to a more normalised trading pattern and performance in 2022, which will make the comparators from 2021 challenging. We remain watchful of the uncertainties ahead, including the economic outlook and the potential impacts from ongoing disruption to global supply chains and cost inflation upon our business."
Shares in the company were 2.0% higher at 937.80 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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