HomeBussinessGrafton Group’s quarterly sales slip following price deflation and wet weather

Grafton Group’s quarterly sales slip following price deflation and wet weather


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The company, which owns the Chadwicks and Woodie’s brands in Ireland, reported revenues of £669.2m (€782.29m) in the period from January 1 to April 21. This was down 5pc from the same time in 2023.

In a trading update, the group pointed to subdued activity, with trading typically slower in the seasonally less important early months of the year.

Average daily like-for-like revenue fell by 4.5pc compared to 2023 levels.

Grafton Group said the Chadwicks business in the Irish market recorded price deflation of around 6pc in the year to April 21.

However, demand for housing materials remained strong as a result of the Government focus on housebuilding. Revenues rose by 0.6pc in the period.

Demand in the UK repairs, maintenance and improvement (RMI) market were described as weak, with deflation and poor weather conditions contributing to a decline in revenues.

Sales in this division were down 6.2pc in the period compared to same time in 2023.

The company’s retail, home and garden business in Ireland performed well, according to the group. Woodie’s sales rose at the start of the year, with both transaction numbers and average basket sizes on the rise.

As a result, revenues rose by 3.2pc compared to the corresponding period in 2023.

In August last year, the company commenced a buyback programme of up to £100m. Grafton Group completed this programme at the end of last month, which involved the repurchase of 11.1 million ordinary shares.

“Trading in the period continued to be challenging in most of our markets and revenue trends were also impacted by price deflation and exceptionally wet weather in Ireland and the UK,” chief executive Eric Born said.

“Looking ahead, whilst we are not expecting a sustained recovery in our markets in the short term, we do expect profitability to be slightly more weighted than usual to the second half.,” he added.

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