Grafton Group has expressed continued optimism about the sturdy growth in the Republic’s construction sector, reaping the benefits of vigorous house building activity which has boosted sales at Woodies DIY and Chadwicks in the first six months. Despite a 4.4% decrease in the total earnings of the London-listed group to £1.14 billion (€1.34 billion) for the first half of 2024, optimal performance in its Irish branch showed a silver lining.
In a market briefing, Grafton revealed an uptick in average daily revenues at Chadwicks after a 0.2% drop in Q1, being buoyed by a 5.4% leap in sales volumes in H1, clearly outpacing the same frame in the preceding year.
Additionally, Grafton recognised the governmental policies that support enhancement of new home developments, a strong factor in its sanguine projection of the Republic’s construction industry. It reiterated the positive growth outlook for Irish construction, noting the phasing out of deflationary conditions in steel and timber markets, with an overarching price deflation round 4.9% in H1.
Amidst less favourable sales at Woodies DIY, Grafton declared an advancement in profitability owing to efficacious margin management and cost control mechanisms over the same timeframe in the prior year. Previously, Grafton attributed weaker demand to adverse weather conditions in the UK and Ireland, affecting sales adversely.
UK operations endured a slightly hushed Q2, with cautious consumers cognisant of discretionary spending. As per Grafton’s CEO, Eric Born, the group is delighted with its Irish standing, where potentialities are encouraging. Notwithstanding the herculean tasks in the repair, maintenance & improvement, and new build markets, the group will persistently manage margins and costs considering market fluctuations. Born elucidated the group’s ongoing pursuit of its acquisition agenda in Europe and other new territories.