Grafton holds guidance as H1 sales rise 3.2% despite lower volumes

International building materials distributor and DIY retailer Grafton Group held annual guidance as first-half revenues rose 3.2% despite the cost-of-living crisis hitting volumes.

The company on Wednesday said revenue for the six months to June 30 was £1.19bn compared with £1.15bn in the prior year.

Average daily group like-for-like revenue in the second quarter was slightly stronger against the prior year than the performance in the first quarter, it added.

Grafton said it had benefited from the geographic diversity of its markets with 60% of revenue generated in Ireland, the Netherlands and Finland.

“While closely monitoring the heightened macroeconomic uncertainty and the attendant risks to the downside in the residential RMI and new build markets from cost-of-living pressures and successive interest rises, we continue to anticipate delivering full year operating profit in line with expectations based on current trading conditions,” it added.

First half volumes were lower in the distribution businesses in Ireland, the UK and Finland and broadly unchanged in the Netherlands, reflecting the impact of the cost-of-living increases and rising interest rates.

Lower volumes and sharp falls in timber and steel prices also contributed to more competitive markets and margin pressure in the distribution businesses in Ireland and the UK, Grafton said.

Reporting by Frank Prenesti for Sharecast.com