Howden Joinery Group (LSE:HWDN), the kitchen and building supplies retailer, stormed 8% higher on Thursday after it revealed sales were expected to jump in all its regions as it continues to expand.
Despite revenues in the 2023 financial year keeping flat on 2022’s record £2.3 billion, management is confident in growing this further this year, with increases already occurring in all countries where it operates.
Market conditions are expected to stay similar to last year, but the joinery retailer believes it can drive profitability by managing both margins and volumes.
Management is also predicting the company will outperform its competitors in the coming year.
Driving this growth will be several expansion plans which include opening 30 new depots, including 10 internationally, and launching nine new product ranges, with an extended focus on the under-represented premium segment.
Bedroom ranges, a paint-to-order service, increased joinery services and a click-and-collect service are also schemes set to be launched in 2024.
It follows a difficult 2023 that saw pre-tax profits slump 19% to £327 million, while earnings per share dropped 30% to 46.5p.
Andrew Livingston, chief executive said: "The combination of a strong product line-up, high stock availability and outstanding customer service, alongside investments to drive future growth, all contributed to further market share gains in 2023.
"Our established markets for kitchens and joinery in the UK are now estimated to be around £12 billion and we continue to seek further opportunities in adjacent markets.
“While we are cautious about the macro-economic and geo-political environment, given the encouraging start to the year and the agility of our business model, the board is confident in the outlook for 2024."