Woodie’s owner Grafton Group reports 10% profit bump after strong performance in Spain and Ireland
The group's first-half adjusted operating profit rose by 9.5%, which it said was in line with expectations, increasing to £91m. Picture: Eddie O'Hare
Woodie's owner Grafton has reported revenue and profit growth of around 10% in the first six months of the year, with sales reaching £1.25bn (€1.44bn).
The group welcomed what it called a "resilient performance" in the first half of 2025, with the group's performance in Ireland also improving following its acquisition of HSS Hire Ireland.
The group's first-half adjusted operating profit rose by 9.5%, which it said was in line with expectations, increasing to £91m, which was underpinned largely by the contribution of Salvador Escoda, the Spanish air conditioning and heating products distributor it acquired last year.
The company also welcomed a gross margin improvement of 60 basis points, which it said offset the impact of increased overheads connected to inflationary pressure and higher costs.
“Grafton delivered a resilient performance in the first half, with revenue and profit approximately 10% higher than the same period last year, driven by strong contributions from Spain and Ireland," said CEO of the company, Eric Born.
“Following the platform acquisition of Salvador Escoda, non-UK markets now account for approximately 64% of the group's turnover,” Born said.
“Given our ambition to be a leading player in the European building materials distribution market and our exposure to the growing and fragmented Iberian market, we would expect that diversification trend to continue.”
However, at the end of May and into June, Mr Born said the company recorded "an easing of trading momentum," adding: ”the start of the second half has seen a return to growth of group average daily like-for like revenue“.
He said the group’s outlook for the full-year varies by market, but has forecast “adjusted operating profit to be broadly in line with analysts' expectations”.
“Despite lingering cyclical lows, we continue to invest in the UK, the Netherlands and Finland, given their strong recoverability potential over time. In addition to organic development, we are actively pursuing bolt-on and platform acquisitions in our chosen European markets," he concluded.
