Grafton Group reports sales growth in first half of 2022

The building materials company Grafton Group reported good business for the first half of the year despite increased economic uncertainty.

The company, which owns the Chadwicks and Woodie’s brands in Ireland, reported sales growth of 13.9 percent on a constant currency basis for the period January 1 to June 30.

In a trade update, the company reported that sales in Ireland and the Netherlands had performed strongly, while sales in the UK were more subdued due to strong peers.

The Grafton Group said Chadwicks’ overall performance in the Irish market was exceptionally strong following a return to more normal trading conditions as well as “significant” price inflation for building materials, particularly steel and timber products.

Chadwicks has also experienced strong demand for materials used in RMI housing projects, plan and detached homes, and private and public construction.

The Sitetech business, which Grafton Group acquired at the end of February this year, also traded better than expected.

Sales levels at the company’s retail operations in Ireland reversed as expected by the group as strong profits reversed during the Covid-19 lockdown. Woodie’s was traded as a key retailer while Ireland was in lockdown.

Despite this slowdown, retail sales in the first half of this year were 25.6 percent higher than before the 2019 pandemic.

Total sales for the group rose to £1.15bn (€1.36bn) for the half-year, with the company saying overall trading remains on track for the half-year.

Despite continued economic uncertainty, the group said it will not be making any changes to its full-year operating profit expectations at this time.

Half of the Group’s first half operating profit was also generated outside the UK.

In May, the company launched a buyback program of up to £100m (€118.25m), which it expects to complete by the end of the year. Currently, the Grafton Group has completed £43.8m (€51.8m) of this scheme.

“The Group’s overall trading performance compared to a very strong peer over the first half of last year and our full year operating profit expectations remain unchanged. Notwithstanding the current macroeconomic risks, our portfolio of resilient, high-performing companies has the flexibility to adapt to changing circumstances and is well positioned to outperform,” said Chief Executive Gavin Slark.

Earlier this month, Mr. Slark announced his intention to step down by the end of this year. According to the company, the search for a successor has now begun with the support of a personnel consultancy.

https://www.independent.ie/business/irish/grafton-group-reports-revenue-growth-in-the-first-half-of-2022-41832636.html Grafton Group reports sales growth in first half of 2022

Fry Electronics Team

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