Howden Joinery: Netherlands History & EU Growth Opportunity
Former Product and Marketing Manager, Howden Joinery Netherlands
inpractise.com/articles/howden-joinery-netherlands-history-and-eu-growth-opportunity
Howden Joinery Group PLC
Why is this company interesting?
Founded in 1995, Howdens is the number one trade kitchen supplier in the UK. The company has ~800 depots in the UK and ~50 in France and Belgium combined. Howdens is a trade-only business serving local builders with a focus on high product availability, generous trade credit terms, and high depot density to save builders time and money completing jobs.
Howdens is vertically integrated and manufactures all worktops and ~30% of frontals in the UK. Depots are located on inexpensive industrial real estate and only require £350k capex and £350k of inventory cost to open. At maturity, each depot earns ~£2m in revenue and ~20% EBITDA margins.
Howdens has compounded FCF per share over 12% for 20 years and consistently earns ~50% ROIC. The company’s founder stepped down in 2018 and the Former Screwfix CEO now runs the business. Howdens believes they can reach 900 depots in the UK and is now expanding to France and Belgium which is the potential growth opportunity.
Howden Joinery: Netherlands History & EU Growth Opportunity(November 29, 2021)
Arthur van Keulen
Former Product and Marketing Manager, Howden Joinery Netherlands
Arthur is a Former Product and Marketing Manager at Howdens Joinery Netherlands, where he was responsible for growing the number of builders and curating the kitchen range selection. Howdens entered the Netherlands in 2015 and eventually left the market in late 2019 to focus entirely on France and Belgium. We’re exploring the history of Howdens in NL to help us understand the French but also wider EU opportunities for Howdens.
In Practise Notes
- ~80% of the market is owned by kitchen retailers in NL vs UK it's ~80% led by builders
- HWDN was performing well in NL yet management decided to close the country and focus entirely on France
- The range and kitchen taste is different in EU vs UK which could take Howdens time to learn in new countries
- Good comparison of the retail kitchen offering vs HWDN: HWDN is focused on selling via trusted builders and serving the builder with credit, availability, and good pricing
- TAM of 60 depots in NL
Interview Transcript
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