Woodie's and Chadwicks parent company Grafton posts rise in revenue despite cost pressures hitting households 

Grafton shares surged more than 5% after the The DIY retailer and building materials company posted £1.2bn (€1.4bn) in revenue for the first two quarters, a 3.2% rise on the same period last year.

In a trading update, the company said it benefited from “geographic diversity of its markets” over the last six months.

Grafton Group, the parent company of Woodie's and Chadwicks, shares jumped more than 5% after it posted an increase in revenue during the first six months despite ongoing cost pressures.

The DIY retailer and building materials company posted £1.2bn (€1.4bn) in revenue for the first two quarters, a 3.2% rise on the same period last year as consumers continued to shop at the popular chains operated by the company while being hit by the cost-of-living crisis.

“Grafton achieved a resilient first half trading performance against the backdrop of challenging market conditions and a strong prior year comparator,” said Eric Born, Grafton Group CEO.

In a trading update, the company said it benefited from “geographic diversity of its markets” over the last six months as the volume of materials distributed in Netherlands during the first quarter supported a slower performance in its Irish business during the same period.

The impact of the cost pressures and rising interest rates hit Grafton's business in the UK and Ireland. The firm said lower volumes and sharp falls in timber and steel prices also contributed to more competitive markets and margin pressure in the distribution businesses in these markets.

In Ireland, Chadwicks saw lower demand for materials supplied for housing projects and the construction of single homes.

However, the Woodie’s DIY, Home and Garden business performed strongly, driven by good levels of demand for seasonal products in the second quarter.

The company said it will continue to monitor the volatile economic environment but still anticipates it will deliver full year operating profit in line with expectations based on current trading conditions.

Analysts forecast the group will generate operating profit of around £205m.

“Our management teams’ focus in the second half will be on supporting customers in our market leading businesses, tightly managing the cost base and responding quickly to evolving trading conditions,” said Mr Born.

In May, the company launched a third share buyback valued at £50m and said by the end of June it completed £23m of the buyback programme.

Grafton trades from circa 360 branches and employs around 9,000 people.