(Alliance News) – The Grafton Group plc said on Wednesday its revenues were higher in 2022 than in 2021 and up 40% from pre-pandemic in 2019, noting favorable trends in Ireland and the Netherlands, but slowing in the UK.
The Dublin-based building materials company, owner of Selco Builders Warehouse, has benefited from the acquisition in summer 2021 of Finnish wholesaler Isojoen Konehalli Oy & Jokapaikka Oy, with a jump in revenue in Finland.
Grafton said revenue rose 9.1% to £2.30bn in 2022, from £2.11bn in 2021, and rose 40% from £1.64bn in 2019. Citing good conditions in Ireland and the Netherlands, the company said: Revenues were “supported by good fundamentals. Inflated demand and prices for building materials” in both countries. Revenue from its operations in Ireland increased by 14%, while revenue in the Netherlands increased by 16% in 2022 compared to 2021.
Turnover in Finland has more than doubled. “The recovery in demand for IKH’s workwear, tools and spare parts that developed earlier in the second half of the year picked up momentum in the final months of the year. Supported by generally resilient activity in the end markets,” said Grafton. The company bought Finnish wholesaler Isojoen Konehalli Oy & Jokapaikka Oy for €199.3m in July 2021.
Meanwhile, trading conditions in the UK continued to soften amid lower volumes. Total revenue in 2022 increased by only 2.0%.
At the same time, retail revenue in 2022 decreased by 14% in pounds sterling compared to the previous year.
From November 1 to December 31, the retailer’s average daily trading volume, fixed exchange rate, decreased by 1.7% compared to the previous year, but increased by 20% compared to the previous three years.
Over the same period, UK average daily retail revenue fell 0.5% year-on-year at constant exchange rates. In Ireland and the Netherlands, it increased by 0.8% and 11%, respectively. In Finland, it increased by 8.9%.
Looking ahead, Grafton expects its adjusted operating profit for 2022 before property profits to exceed the upper end of analysts’ expectations and fall in the range of £243.5m to £249.5m. The forecast upper bound would be 8.0% lower than the 2021 level of £271.2m.
Grafton shares rose 3.9% to 870.50p each in London on Wednesday morning.
By Tom Podzus, Alliance News correspondent
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