REG - Grafton Group PLC - Trading Update

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RNS Number : 3016H  Grafton Group PLC  13 November 2025

Grafton Group plc

Trading Update

On Track to Deliver Full Year Expectations

 

Grafton Group plc ("Grafton" or "the Group"), the international building
materials distributor and DIY retailer, issues this trading update for the
period from 1 January 2025 to 31 October 2025.

 

Trading and Performance

 

Group revenue of £2.13 billion (2024: £1.91 billion) in the ten months to 31
October 2025 was 11.5 per cent higher than the prior year and up 11.2 per cent
in constant currency.  This growth was supported by the beneficial impact of
M&A activity, including ten months of trading from HVAC specialist
distributor Salvador Escoda and five months trading from HSS Hire Ireland.
 

 

Group average daily like-for-like revenue in the four months to the end of
October ("the Period") was 1.6 per cent higher than the prior year albeit with
some easing in momentum over the last two months, reflective of some softening
in activity levels from earlier in the year.

 

The following table shows the changes in average daily like-for-like revenue
compared to the same periods in the prior year.

 

 Segment                 Average Daily Like-for-Like Revenue Change

                         in Constant Currency

                         Six Months to 30 June 2025  1 July to 31 October 2025  YTD to 31 October 2025
 Distribution
      - Ireland          +3.7%                       +3.3%                      +3.5%
      - UK               +0.2%                       (0.5%)                     (0.1%)
      - Netherlands      +2.8%                       +0.7%                      +1.9%
      - Finland          (4.2%)                      (6.4%)                     (5.2%)
 Retailing               +7.6%                       +3.9%                      +6.2%
 Manufacturing           +5.2%                       +11.1%                     +7.5%
 Group                   +2.4%                       +1.6%                      +2.1%

 Spain Distribution(1)   +6.9%                       +5.7%                      +6.4%

 

In Ireland, both Chadwicks and Woodie's saw slightly softer activity levels in
the seasonally important trading months of September and October.  Whilst the
outlook for growth in the construction market remains positive, underpinned by
strong government support and the revised National Development Plan, we have
seen some weakness in the published Construction PMI over recent months. This
coincides with a dip in housing commencements following a reduction in
planning permissions in the first half of the year.  The acute housing
shortage however continues to underpin the medium-term outlook for
construction activity in Ireland with the Government expected to publish its
long-awaited National Housing Plan imminently.

 

Average daily like-for-like revenue in the UK distribution business declined
by 0.5 per cent in the Period with a weakening of trading activity in October
which is likely a consequence of consumer and homeowner concerns leading into
the November Budget. In our GB manufacturing businesses, average daily
like-for-like revenue in the Period was 11.1 per cent higher compared with the
same period last year with modest volume growth, albeit largely reflective of
weak comparators in the prior year.

 

In the Netherlands, average daily like-for-like revenue increased by 0.7 per
cent during the Period as momentum in the market has eased in the second
half.  The slower rate of growth compared to the first half was primarily
driven by weaker branch and project-related sales partially offset by
continued growth in sales to national key accounts.

 

In Spain, we have successfully completed the integration of Salvador Escoda, a
leading national HVAC distributor, and we continue to actively explore growth
opportunities in the attractive and fragmented Iberian market. On a pro-forma
basis, average daily like-for-like revenue in the Period was up 5.7 per cent,
supported by a strong summer sales campaign focused on air conditioning and
ventilation products and favourable market conditions.

 

In Finland, IKH's average daily like-for-like revenue decreased by 6.4 per
cent in the Period, reflecting continued weak market conditions albeit the
decline has eased significantly in comparison with the period from May through
to August.

 

Share Buyback

 

A seventh programme was launched on 4 September 2025 to buy back ordinary
shares in the Company for an aggregate consideration of up to £25 million.
This programme completed on 7 November 2025 and involved the repurchase of
2.74 million ordinary shares at an average share price of £9.14.

 

Cash of £428.3 million has been returned to shareholders through share
buybacks completed between 9 May 2022 and 7 November 2025 reflecting the
repurchase of 49.28 million ordinary shares at an average price of £8.69 per
share. The number of shares bought back by the end of the seventh programme
amounted to 20.5 per cent of the shares in issue when the first buyback
programme commenced.

 

Operating Profit Guidance

 

The Group remains on track to deliver full year adjusted operating profit(2)
in line with expectations(3).

 

Eric Born, Chief Executive Officer of Grafton Group plc commented:

 

"The strength of Grafton's business model is evident in our performance year
to date. Overall revenue increased by over 11 per cent supported by continuing
growth in building materials distribution in Ireland, Spain and the
Netherlands and in retailing and manufacturing, helping to offset market
weakness in the UK and Finland. Progress in the period means Grafton remains
on track to deliver adjusted operating profit for the full year, in line with
expectations.

 

"Though momentum has slowed somewhat in the period, the outlook for Grafton
remains positive, supported by structural tailwinds, strong market positions
in all geographies, significant recovery potential in the UK and Finland, a
robust balance sheet and encouraging acquisitions pipeline."

 

( )

(1 Like-for-like sales are presented on a proforma basis to reflect the
performance of Salvador Escoda, which was acquired by the Group on 30 October
2024, as though it had been part of the Group for the entire comparative
period.)

(2 Adjusted operating profit is defined as profit before amortisation of
intangible assets arising on acquisitions, acquisition related items,
exceptional items, net finance expense and income tax expense.)

(3 Grafton compiled consensus analysts' forecasts for 2025 show adjusted
operating profit of circa £182.2 million.)

 

Ends

 

For further information please contact:

 Investors                                   Media

 Grafton Group plc  +353 1 216 0600          Murray          pwalsh@murraygroup.ie (mailto:pwalsh@murraygroup.ie)

 Eric Born          Chief Executive Officer  Pat Walsh       +353 1 498 0300/+353 87 226 9345
 David Arnold       Chief Financial Officer
                                             Burson          GraftonGroup@buchanancomms.co.uk

                                             Buchanan

                                             Helen Tarbet    +44 (0) 7872 604 453

                                             Simon Compton   +44 (0) 7979 497 324

                                             Toto Berger     +44 (0) 7880 680 403

 

 

About Grafton

 

Grafton Group plc is an international distributor of building materials to
trade customers and has leading regional or national positions in the
distribution markets in the UK, Ireland, the Netherlands, Finland and Spain.
Grafton is also the market leader in the DIY, Home and Garden retailing market
in Ireland and is the largest manufacturer of dry mortar and bespoke timber
staircases in the UK.

 

Grafton trades from c. 470 branches and has c. 10,000 colleagues. The Group's
portfolio of brands includes Selco Builders Warehouse, Leyland SDM, MacBlair,
TG Lynes, CPI EuroMix and StairBox in the UK; Chadwicks and Woodie's in
Ireland; Isero and Polvo in the Netherlands; Salvador Escoda in Spain and IKH
in Finland.

 

For further information visit www.graftonplc.com (http://www.graftonplc.com)

 

Forward-looking statements

This press release may include forward-looking statements. These
forward-looking statements can be identified by the use of forward-looking
terminology, including the terms "outlook," "believe(s),"expect(s),"
"potential," "continue(s)," "may," "will," "should," "could," "would,"
"seek(s)," "predict(s)," "intend(s)," "trends," "plan(s)," "estimate(s),"
"anticipates," "projection," "goal," "target," "aspire," "will likely result"
and other words and terms of similar meaning or the negative versions of such
words or other comparable words of a future or forward-looking nature. These
forward-looking statements include all matters that are not historical facts
and include statements regarding Grafton's or its affiliates' intentions,
beliefs or current expectations concerning, among other things, Grafton's or
its affiliates' results of operations, financial condition, liquidity,
prospects, growth, strategies and the industries in which they operate. By
their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future. Readers are cautioned that forward-looking statements are
not guarantees of future performance and that Grafton's or its affiliates'
actual results of operations, financial condition and liquidity, and the
development of the industries in which they operate may differ materially from
those made in or suggested by the forward-looking statements contained in this
press release. In addition, even if Grafton's or its affiliates' results of
operations, financial condition and liquidity, and the development of the
industries in which they operate are consistent with the forward-looking
statements contained in this press release, those results or developments may
not be indicative of results or developments in subsequent periods. The
directors do not undertake any obligation to update or revise any
forward-looking statements, whether because of new information, future
developments or otherwise.

 

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