Grafton Group stock soars as Woodie’s DIY store owner picks up sales in first half
- London-listed Grafton Group saw its share price rise more than 5% on Wednesday
- The group said geographic reach helped increase sales in the first half
Shares of Grafton Group are up today after the company revealed higher first half earnings.
Grafton Shares were up 5.39 percent or 41.10 pence this afternoon to 803.40 pence, after rising about 6 percent over the past year.
The international building materials distributor and DIY retailer maintained its annual guidance as revenues rose 3.2 percent in the first half, despite the cost-of-living crisis hitting volumes.
On the rise: Grafton Group saw turnover increase in the first half of the year
The group, which owns Woodie’s, said sales for the six months to the end of June were £1.19 billion, up from £1.15 billion a year ago.
Grafton said it had benefited from the geographic reach of its markets, with 60 percent of sales generated in Ireland, the Netherlands and Finland.
The group said: “As we closely monitor heightened macroeconomic uncertainty and associated downside risks in the residential RMI and new construction markets due to cost of living pressures and sequential interest rate hikes, we continue to anticipate full-year operating earnings. year in line with expectations based on current trading conditions.’
It remains optimistic about its outlook, adding: ‘The Group remains well positioned thanks to the strength of its leading brands, geographic diversity and exceptionally strong balance sheet.’
Volumes in the first half year were lower in the distribution business in Ireland, the UK and Finland and were broadly unchanged in the Netherlands, due to the impact of rising cost of living and higher interest rates.
Lower volumes and sharp declines in timber and steel prices also contributed to more competitive markets and margin pressure in the distribution business in Ireland and the UK, Grafton added.