Round-up | NEWS


Howdens revenue takes a hit after continuing ‘economic headwinds’


TRADE KITCHEN giant Howdens has reported a drop in UK revenue for the year to October 28. In a trading update the company said that it had seen a 2% dip in revenue for the period ending October 28, 2023, compared to the same period in 2022, with like-for-like sales down 3.3%.


In the report Howdens stated that it delivered a “robust performance” in the latter half of the year, despite “continuing macroeconomic head- winds”. It also said its underlying performance was consistent with its “record” sales in the previous year. The trade giant also warned that the reported figures may not accurately reflect the strong sales of made-to- order products in the few days before confirming revenue figures, as these products have longer lead times. Howdens’ international revenue figures were much more positive. In the first six months of 2023, Howdens


saw international revenue growth of almost 30% over 2022’s figures. International


revenue has grown


even more significantly, with 2023 year-to-date growth being reported at more than 100% over 2019’s revenue. Howdens’ chief executive, Andrew Livingston, commented: “Howdens has continued to trade well since the half year and has gained market share. UK depot sales during our peak trading period remained consistent


with last year’s record performance. “This was a significant achievement by our teams given the macroeco- nomic headwinds and dem onstrates the value of our culture and a differentiated business model.” He added: “Our balance sheet and cash generation remain strong, and we continue to invest in our strategic initiatives to develop the operating model, which strengthens our com - petitive advantage.”


Huge Arcelik and Whirlpool merger gets EU Commission clearance


THE EUROPEAN Commission has given its official approval to the proposed merger between appliance giants Arçelik and Whirlpool Corporation. However, in the UK, the deal is still subject to approval by the Competition and Markets Authority (CMA) after it also raised concerns that the creation of Beko Europe B.V. could threaten to significantly reduce competition in the domestic appliance market. In a daily news bulletin published on October 24, the European Com - mission announced that it had cleared the deal under the EU Merger Regulation, allowing for the acquisition of Whirlpool’s domestic appliance


December 2023 •


business in Europe, the Middle East and Africa by Arçelik.


After reviewing the proposed


merger, the Commission concluded that the transaction would not raise significant competition concerns, especially considering “the presence of alternative suppliers in the European Economic Area countries where both parties are active”. In


the UK, the Competition and


Markets Autho rity (CMA) has opened an official inquiry into the proposed merger, after both Arçelik and Whirlpool Corporation failed to address its stated competition concerns before a given deadline of October 5.


Following the announcement of


the European Commis sion’s decision, a spokesperson for Arçelik said: “Arçelik welcomes the European Commission’s approval of the proposed transaction with Whirlpool Europe. Today’s decision confirms that the combination of both companies’ joint manufacturing expertise, strong supply chains, effective distribution and sales networks, and innovative product pipelines will create value for EU consumers. “We would like to thank the staff of the European Commission for the constructive approach they have taken in the context of the review.” A spokesperson from Whirlpool Corporation added: “We are pleased that the EU has granted unconditional approval for our proposed transaction with Arçelik to create a newly formed European appliance company. “This is a key milestone, and it’s important to be clear that the transaction will not proceed to close until the


remaining independent


regulatory approvals are received.” Despite a slight dip in Q3 profits over the previous quarter, Whirlpool has seen a meteoric rise year on year, with healthy growth in net sales. As revealed in its Q3 financial results, Whirlpool reported an earnings before income tax figure of $322 million (£265m) – an increase of over 21.5% on its Q3 figure of $265m (£211m) from last year.


Cosentino launches new London showroom


SURFACES MANUFACTURER Cosentino has launched a new showroom in London’s Hatton Garden district.


Officially referred to as “Cosentino


City London” by the manufacturer, the new showroom boasts a floorplan of more than 420sq m, which is spread across three floors. Visitors


to the space can see a


showcase of Cosentino’s portfolio of brands, including Silestone, Dekton and Sensa, as well as paying a visit to the brand’s Atelier Lab, which Cosentino will use to help educate designers


and architects on the


different materials it offers. Visitors to the new showroom also have the option to hire meeting spaces for work or social meetings, allowing them to experience Cosentino products first-hand.


5


Looking ahead to its economic future, Howdens said it still maintains its full year expectations for 2023, although admitted that the final figure may be towards the lower end of its original forecast given the current tough economy.


This forecast is consistent with Livingston’s comments from earlier this year, where he acknowledged that the kitchen


sector is currently facing “challenging” economic conditions.


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