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Revenues at Grafton Group were up by 9.1pc in 2022 as trading returned to “more normal levels” following soaring pandemic demand.
roup revenue rose to £2.3bn (€2.6bn) last year, up from £2.11bn (€2.4bn) reported the year prior.
Adjusted operating profit was down slightly to £285.9m (€322.35m) from £288m (€324.72m) in 2021.
Adjusted profit per tax rose 1.7pc to £273.3m (€307.8m).
The group pointed to a “sharp” rise in building material prices for the second consecutive year, leading to a decline in the residential repair, maintenance and improvement categories as households reduced discretionary spending.
Chadwicks, the group’s distribution business here, recorded a strong performance in 2022, largely driven by inflation and the impact of inflation.
It also recorded a rise in revenues due to ongoing activity in the residential new build market.
Revenue from the Irish distribution unit rose 14.4pc to £618.3m (€697.1m) last year.
The company also owns the Woodie’s DIY business in the Irish market.
Trading normalised at Woodie’s due to the reversal of “exceptional pandemic-related spending”, a slowdown that was also attributed to the pressure on disposable incomes throughout 2022.
Revenue dropped by 13.7pc to £244m (€275m), with operating profit declining 35.9pc to £32.6m (€36.8m) .
However, operating profit remained 43.9pc higher than pre-pandemic levels.
Grafton Group now anticipates the impact of headwinds this year, such as project affordability, interest rate increases and fall in disposable incomes, to be mitigated by low levels of unemployment and declining energy.
It pointed to the “resilient” Irish market, with a good level of spending expected from customers in the DIY and repair and maintenance categories.
However, Grafton expects house completions to be held back due to the decline in commencements and concerns around viability.
“We still face many of the external challenges that we faced in 2022, but I am encouraged by the quality of the Group’s portfolio of higher margin businesses that are sensibly positioned with both market leading brands and geographic diversity,” chief executive Eric Born said.
He added that half of the company’s revenues now come from outside the UK in Ireland, Finland and the Netherlands.
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