Builders merchanting and DIY group Grafton Group has said revenue in the first half of the year increased by 13.9% on a constant currency basis.
In a trading update, the group said their distribution businesses in Ireland and the Netherlands performed strongly, while the UK distribution business was more subdued.
Grafton Group owns the Woodies DIY chain and builders merchants Chadwicks here.
It said revenue normalised in the retailing business here as the gains during the Covid-19 lockdown reversed as expected.
It added that the overall performance of Chadwicks' distribution business in Ireland was "exceptionally strong" in a market that experienced a return to more normal trading conditions and significant building materials price inflation particularly for steel and timber products.
According to Grafton Group, the strong demand was driven by increased spending on materials used in a wide range of housing RMI projects, an acceleration in the construction of scheme and one-off houses and an increase in non-residential private and public sector construction.
The group said there was a "significant normalisation" of revenue in the Woodie's DIY, Home and Garden business here - particularly in the four months to the end of April following the gains made in the previous year when Woodie’s traded as an essential retailer while Ireland was in lockdown.
However, it said revenue for the half year was ahead of the pre-pandemic level in 2019 by over 25%.
Group revenue increased by 12.1% to £1.15 billion in the half year from £1.03 billion in first half of 2021, excluding the traditional merchanting business in Great Britain that was divested on 31 December 2021.
In May, Grafton Group commenced a buyback programme of up to £100 million to be completed by the end of the year.
As of 30 June 2022, it said the group had completed £43.8 million of the buyback programme.
"The Group's overall trading performance was good against a very strong comparator in the first half of last year and our operating profit expectations for the full year are unchanged," said Gavin Slark, Chief Executive Officer of Grafton Group.
"Notwithstanding current macro-economic risks, our portfolio of resilient high performing businesses has the flexibility to adapt to changing circumstances and is well positioned to outperform," he added.
"Grafton is in a very strong financial position and, with a pipeline of acquisition opportunities, the Group is well positioned to make continued progress on the delivery of its strategy."
Earlier this month, Grafton Group announced that Gavin Slark is to step down as chief executive later this year after 11 years in the job.
Today, the company said the process to appoint a new Group Chief Executive Officer has commenced with the support of an executive search firm.
As previously announced Mr Slark will continue in his roles as CEO and Board Director until 31 December 2022.
