Profit falls at Woodie's owner Grafton despite 'strong performance' in Irish market

Grafton Group said Woodie's continued to maintain strong market share across its product categories despite rising competition

Despite its strong performance in Ireland, continued declines in its UK business saw the group's adjusted operating profit decline by almost 14% to £177.5m (€211m).

Woodie's owner Grafton saw earnings fall last year, with the building materials retailer reporting revenue of £2.28bn (€2.73bn), marking a decline of 1.6% annually.

However, Woodie’s DIY, Home and Garden retail business delivered a “strong” performance in the year, supported by the growth of the Irish economy and its customer proposition.

"The Woodie’s DIY, Home and Garden business in Ireland delivered a strong trading performance underpinned by a favourable macroeconomic environment," the company said on Thursday.

"Despite increasing competition, Woodie’s continued to maintain strong market share across its product categories via its strong customer proposition serviced by a network of 35 stores and growing online presence."

Despite its strong performance in Ireland, continued declines in its UK business saw the group's adjusted operating profit decline by almost 14% to £177.5m (€211m).

“We are pleased to have successfully navigated challenging market conditions in 2024 to deliver adjusted operating profit slightly ahead of analysts’ expectations," said Eric Born, chief executive of Grafton Group.

"This resilient performance was supported by our exposure to different geographies, our diversified customer base and the active management of gross margin and costs."

Commenting on the first two months of 2025, Grafton said average daily like-for-like revenue in the period was 0.1% behind the same period last year, with unfavourable weather conditions having a negative impact on trading in the early part of the year as its businesses in Ireland and the UK were disrupted by Storm Éowyn. 

Trading activity did recover in February however as weather patterns in Ireland and UK improved, the group added, while Woodie’s had a "good start" to the year as consumer spending in Ireland "remained resilient."

The company also announces that it has entered into non-discretionary arrangements with Goodbody Stockbrokers and Numis Securities Limited to conduct a further share buyback programme and to buy back ordinary shares for a maximum aggregate consideration of up to £30m (€36m).