Woodies DIY owner Grafton sees fall in trading across Irish arm 

The company completed a €106m share buyback last month, announcing a third programme today for more than €50m

Volumes were lower year-on-year across the Group's distribution markets in the UK, Ireland and Finland and were ahead in the Netherlands.

Grafton Group, the owner of Woodies DIY and Chadwicks increased revenue by 2.8% to £704.3m (€800.2m) in the first three months of 2023 despite a fall in trading across its Irish and UK markets.

While maintaining full-year profit guidance, the group noted that March was softer than anticipated in terms of trading, with Grafton saying the sale of seasonal products in Ireland and the UK was adversely affected by wet weather conditions.

Volumes were lower year-on-year across the Group's distribution markets in the UK, Ireland and Finland and were ahead in the Netherlands.

According to the group, timber and steel deflation contributed to price moderation across building materials in its Irish and UK distribution businesses, with lower demand for plants and gardening products contributing to a small decline in revenue in Woodies DIY Home and Gardens.

Across its Irish distribution, Chadwicks operated at high levels, with new build activity more resilient in the scheme housing and commercial construction markets following a softening of demand experienced for home construction materials.

Following marginal volume declines, Grafton Group said it remained "alert to macroeconomic headwinds impacting our markets," but maintained its operating profit expectations for 2023.

The company also today announced a third programme to buy back ordinary shares for an aggregate consideration of £50m (€56.8m), with the group wishing to retain "significant capacity to invest in strategic growth opportunities." The announcement follows the completion of its second share buyback programme in April this year for €106m.

“Our resilient Q1 performance reflects the strength of Grafton’s diversified businesses and proximity to customers through its federated structure," said group chief executive, Eric Born.

"Since joining the Group five months ago, I have spent significant time working with colleagues in our businesses to refine our development plans whilst also visiting many potential acquisition opportunities in European markets and I remain confident about the medium-term prospect of increasing shareholder value.”