Howden Joinery swings to first-half loss as lockdown hits sales

Howden Joinery swung to a first-half loss as the coronavirus lockdown hit earnings in the second quarter, although there were signs of a recovery in the second half.

The kitchen and building products maker said it was cautious on the future outlook after reporting a first-half pre-tax loss of £14.2m compared with a profit of £78.1m a year ago as revenue fell 28.7% to £465m.

Howden said performance improved period on period in the second quarter as it found ways to re-open for business safely and with full stock availability. UK Depot Sales in the first four week period of the second half were up 2% year on year, it added.

Howden Joinery UK depot revenue fell 29% to £453m, while UK revenue was down by 30.3% on a same depot basis to £443.

Split by quarter, Howden Joinery UK revenue was 1.1% higher in the first quarter and 55.9% lower in the second quarter, and 0.8% lower and 56.9% lower, respectively, on a same depot basis.

“The shortfall in sales all occurred in the second quarter, which coincided with the start of lockdown in the UK,” the company said.

Gross profit margin fell to 59.4% from 61.9%, reflected 'mix changes and the impact of carrying fixed costs during reduced levels of production,' it added.