Revenue at Grafton Group hits €2.6bn in 10 months
Revenue at building merchanting and DIY group Grafton has risen by 9.1pc to £2.3bn (€2.6bn) year-on-year in the ten months to 31 October.
Looking at the most recent four month period – July to October - revenue growth in the UK merchanting division increased by 5.4pc.
The pace of growth in the Irish merchanting business moderated a little to 8.4pc in the four month period. The moderation had been anticipated by the company.
"The recovery in house building gathered momentum in Ireland from a low base but it will require several years for supply to meet ongoing demand," a statement from Grafton Group said.
In the Netherlands, the merchanting business experienced revenue growth of 5.7pc, as the group continued to benefit from broadly based growth in the Dutch economy, and increased activity in the secondary and new housing markets.
Grafton also reported modest growth of 2.1pc in the four month period in its Belgian merchanting business.
Overall the merchanting business accounts for 92pc of the company’s revenue.
The company’s retail division, which accounts for 6pc of group revenue, saw its revenue increase by 9.1pc in the four months to October, as spending Woodie's stores increased strongly, with customers responding positively to the store upgrades.
Grafton said that the retail business would now focus on the typically higher volume final two months of the year when “the seasonally important Christmas category is a key driver of demand”.
Looking forward expectations for the full year remain unchanged at the group.
"We anticipate that current trading conditions in the UK merchanting business are likely to continue over the remainder of the year while the Irish and Netherlands businesses should benefit from favourable trading conditions and strong market positions," Gavin Slark, CEO of Grafton Group, said.