Grafton Group sees sales increase in first half

The building materials group Grafton Group reported an increase in sales for the first half of the year.

The company, which owns the Chadwicks and Woodie’s brands in Ireland, reported sales growth of 12.2 percent for the six months ended June 30.

Revenue for the period was £1.2bn (€1.42bn).

Adjusted profit before tax for the first half was £143.4m (€169.7m), down 3.6% from the same period last year.

In the trading update, the company reported that the distribution businesses in Ireland and the Netherlands had developed strongly.

Grafton Group also pointed to a normalization in sales and profitability at its Woodies DIY, home and garden business after a surge in demand during lockdown.

Volumes and profitability were also lower in the group’s Selco business compared to last year’s strong performance.

Chadwicks in Ireland had an “exceptionally strong” first half performance with growth in both sales and operating profit.

Supply chain restrictions have also improved, with the group reporting a normalization in trade patterns as material shortages eased.

However, Grafton Group saw continued inflationary headwinds as building materials prices rose sharply, weakening volumes in more competitive markets.

“Our H1 performance saw a significant normalization in activity levels following exceptional pandemic-related trading spikes in H1 2021,” said Chief Executive Gavin Slark.

“While potential macroeconomic headwinds remain, Grafton is uniquely positioned to outperform given its leading market positions, geographic diversity and the relative resilience of its core repair, maintenance and enhancement market,” he added.

In June, 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-sees-revenues-rise-in-first-half-of-the-year-41935911.html Grafton Group sees sales increase in first half

Fry Electronics Team

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