Grafton group sees profit drop 33% as construction costs fall

Stabilising from record highs, the group said price deflation increased gross margin pressure across competitive markets

The DIY and building company also announced a new share buyback programme commencing from the 31st of August, with plans to buy back ordinary shares for a maximum aggregate consideration of up to £50m (€58.2m). Picture: Eddie O'Hare

Grafton Group, the parent company of Woodies and Chadwicks saw earnings fall by almost a third with lower volumes and price deflation impacting profitability.

Falling by almost 33%, the group reported an operating profit of £94.3m (€109.8m) for the first six months of 2023, down from £140.1m (€163m) in the same period last year.