REG - Grafton Group PLC - Trading Update

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RNS Number : 5695O  Grafton Group PLC  13 January 2026

Grafton Group plc

Trading Update

Group traded in line with expectations for 2025

 

Grafton Group plc ("Grafton" or "the Group"), the international building
materials distributor and DIY retailer, issues this trading update for the
period from 1 November 2025 to 31 December 2025, ahead of reporting full year
results for the year ended 31 December 2025, on 5 March 2026.

 

Highlights

 

 ·         Full year adjusted operating profit(1) expected to be in line with
           expectations(2) reflecting the Group's diversified portfolio, which provides
           resilience amid challenging macroeconomic conditions which are affecting
           certain markets
 ·         Average daily like-for-like sales growth broadly flat in final two months of
           the year
 ·         Margin management and cost discipline remains a key operational focus
 ·         Appointment of Mario Ballarín to new role of Iberia CEO in January 2026 to
           drive the Group's growth ambitions in the region
 ·         Streamlined reporting structure into four geographic operating segments
           aligned with Group strategy and management

 

Change to Operating Segments

 

Grafton has adopted a new reporting structure which better reflects the
Group's strategy - the supply and distribution of building materials serving
geographic markets with scalable formats that can deliver long term growth for
shareholders.

 

This new reporting structure is comprised of four geographic operating
segments, which aligns with how the Board now manages the business and
allocates capital and resources for organic and inorganic growth:

 

 ·         Island of Ireland

           o  Comprising Chadwicks, Woodie's, MacBlair and MFP (divested 31 May 2025)
 ·         Great Britain

           o  Comprising Selco, Leyland SDM, TG Lynes, CPI Euromix and StairBox
 ·         Northern Europe

           o  Comprising Isero and Polvo in The Netherlands and IKH in Finland
 ·         Iberia

           o  Comprising Salvador Escoda in Spain

 

Comparative figures for 2024 and 2025 will be restated in the Group's full
year 2025 results to reflect the new structure. The realignment has no impact
on the Group's consolidated financial results. As an aid to the transition, an
appendix to this trading statement includes historical like-for-like revenue
analysis under both the old and new operating segments.

 

Trading and Performance

 

Group revenue for the year was £2.52 billion (2024: £2.28 billion), up 10.4
per cent from the prior year and up 9.6 per cent in constant currency. This
growth included the positive impact of the specialist Spanish HVAC
distributor, Salvador Escoda, which was acquired at the end of October 2024,
as well as seven months of trading following the acquisition of HSS Hire
Ireland.

 

Group average daily like-for-like revenue for the year was 1.7 per cent higher
than prior year but flat year-on-year in the two months to the end of December
("the Period") reflecting continuing easing of activity in the second half of
the year. A robust performance in Iberia along with modest growth in the
Island of Ireland was fully offset by weaker trading in Northern Europe and
Great Britain in the Period.

 

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
                      Ten Months       Two Months       Year to

                      to 31 October    to 31 December    31 December 2025

                      2025             2025
 Island of Ireland    +4.1%            +0.6%            +3.5%
 Great Britain        +0.5%            (0.2%)           +0.4%

 Northern Europe      (0.1%)           (2.9%)           (0.5%)

 Iberia               -                +4.4%            +4.4%
 Group                +2.1%            +0.1%            +1.7%

 Iberia pro forma(3)  +6.4%                             +6.1%

 

Island of Ireland

Our Island of Ireland businesses delivered average daily like-for-like revenue
growth of 3.5 per cent for the year, with growth of 0.6 per cent recorded in
the Period. Trading in the final two months reflected continued momentum in
Woodie's after another strong Christmas campaign. This was partly offset by
weaker trading in Chadwicks, largely due to the timing of jobsite shutdowns
over the holiday period.

Great Britain

Average daily like-for-like revenue increased in Great Britain by 0.4 per cent
for the year but declined by 0.2 per cent in the Period largely due to ongoing
weakness in the RMI market which continued to be impacted by negative consumer
sentiment around the November budget.

Northern Europe

Average daily like-for-like revenue in Northern Europe declined by 0.5 per
cent for the year and was down 2.9 per cent in the Period.  Modest growth in
the Netherlands, driven by strong project related sales, was more than offset
by declines in Finland which reflected unusually mild winter weather and
ongoing weakness in the economy.

Iberia

Salvador Escoda's average daily like-for-like revenue was 6.1 per cent higher
for the full year(3) while growth of 4.4 per cent was delivered in the Period.
The business closed the year strongly, buoyed by robust end of season sales
campaigns in what is usually a less significant seasonal period.

 

Effective the beginning of January 2026, Mario Ballarín assumed the role of
CEO for our Iberia business, tasked with advancing the Group's growth
ambitions in the region. Mario brings significant expertise in driving
business performance, acquisitions and integrations from his tenure at Bunzl
plc where he most recently held the position of Managing Director for South
and Eastern Europe, the Middle East, and the Nordics.

 

Outlook

 

Through a continued operational focus on margin management, robust cost
control and ongoing investment in strengthening our market positions, the
Group delivered a full year trading performance in line with expectations(2),
despite weak market conditions outside of the Island of Ireland and Iberia and
the pressure of continued cost headwinds across all markets.

 

Whilst the Island of Ireland and Iberia segments performed strongly,
meaningful recovery in Great Britain and Northern Europe did not materialise
in 2025, and the timing of any improvement in these two segments in the year
ahead remains uncertain. We will continue to manage our business with a tight
focus on efficiency and cost control.

 

Although momentum continued to moderate across the second half of the year,
the outlook for Grafton remains favourable, supported by structural growth
drivers, strong market positions across all regions, the recovery potential in
Great Britain and Northern Europe, a robust balance sheet, and a healthy
acquisitions pipeline.

 

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

 

"Despite continuing headwinds in some of our markets, the Group delivered a
solid performance in Q4 and an outcome in line with expectations for the full
year. It reflects the strong market positions, resilience and agility of our
operations across our geographies. Continuing strong performances and market
opportunities in Ireland and Iberia, together with market recovery
opportunities in Great Britain and Northern Europe leaves Grafton well placed
to benefit significantly as conditions normalise. Building on our existing
market positions, we see exciting opportunities to further strengthen our
business and to deliver organic and inorganic growth."

 

 

( )

(1 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.)

(2 Grafton compiled consensus analysts' forecasts for 2025 show adjusted
operating profit of circa £181.9 million.)

(3 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.)

 

 

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 building materials distributor and DIY
retailer, comprising four geographic segments serving the Island of Ireland,
Great Britain, Northern Europe and Iberian markets. The Group's strategic
objective is to be a leading European Distributor of building materials and
construction related products, with trusted local brands and market-leading
positions in each market where we operate.

Trading from c. 470 branches with c. 10,000 colleagues, the Group's portfolio
of brands includes:

 ·         Island of Ireland: Chadwicks, Woodie's and MacBlair
 ·         Great Britain: Selco, Leyland SDM, TG Lynes, CPI EuroMix and StairBox
 ·         Northern Europe: Isero / Polvo (Netherlands) and IKH (Finland)
 ·         Iberia: Salvador Escoda (Spain) and the broader Iberian peninsula

 

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.

Appendix:

 Segment            Average Daily Like-for-Like Revenue Change in Constant Currency
                    Full Year  Q1        Q2        H1        Q3        Q4        H2        Full Year

                    2024       2025      2025      2025      2025      2025      2025      2025
 Island of Ireland  +0.8%      +4.2%     +5.1%     +4.7%     +3.9%     +0.9%     +2.4%     +3.5%
 Great Britain      (6.8%)     (1.5%)    +2.1%     +0.4%     +0.8%     0.0%      +0.4%     +0.4%
 Northern Europe    (3.0%)     +2.1%     (0.2%)    +0.9%     (1.4%)    (2.3%)    (1.9%)    (0.5%)
 Iberia             -          -         -         -         -         +4.4%     +4.4%     +4.4%
 Group              (2.7%)     +1.8%     +3.0%     +2.4%     +1.7%     +0.2%     +1.0%     +1.7%

 

 Old Operating Segments  Average Daily Like-for-Like Revenue Change in Constant Currency
                         Full Year  Q1        Q2        H1        Q3        Q4        H2        Full Year

                         2024       2025      2025      2025      2025      2025      2025      2025
 Distribution
      - Ireland          +1.6%      +2.9%     +4.3%     +3.7%     +3.9%     0.0%      +2.0%     +2.9%
      - UK               (5.9%)     (1.9%)    +2.0%     +0.2%     (0.1%)    (0.5%)    (0.3%)    (0.1%)
      - Netherlands      (2.0%)     +3.4%     +2.2%     +2.8%     +1.1%     +1.4%     +1.2%     +2.0%
      - Finland          (5.2%)     (1.9%)    (6.1%)    (4.2%)    (7.4%)    (11.3%)   (9.4%)    (6.9%)
      - Spain            -          -         -         -         -         +4.4%     +4.4%     +4.4%

 Retailing               +3.6%      +9.6%     +6.0%     +7.6%     +5.0%     +1.4%     +3.1%     +5.3%
 Manufacturing           (15.0%)    +4.3%     +6.2%     +5.2%     +9.7%     +7.8%     +8.9%     +6.9%
 Group                   (2.7%)     +1.8%     +3.0%     +2.4%     +1.7%     +0.2%     +1.0%     +1.7%

 

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