Woodie's and Chadwicks owner Grafton Group said its overall performance in the first quarter of its financial year was in line with expectations.
Group revenue in the period to April 23 rose by 2.8% to reach £704.3m from £685.4m the same time last year.
In a trading update ahead of its AGM in Dublin today, Grafton said that trading in March was a little "softer" than anticipated with sales of seasonal products in Ireland and the UK hit by wet weather conditions.
Grafton also said that volumes were lower than in the same time last year in its distribution markets in Ireland, the UK and Finland and were ahead in the Netherlands.
It noted that timber and steel price deflation contributed to a moderation in the rate of building materials inflation in its Irish and UK distribution businesses.
Lower demand for plants and gardening products contributed to a small decline in revenue in the retailing business in Ireland, it added.
Grafton said its Chadwicks business here operated at high levels of activity in a market that continued to be supported by strong demand fundamentals.
"New build activity was more resilient in the scheme housing and commercial construction markets with a softening of demand experienced for materials supplied for the construction of single homes and RMI projects," it added.
But revenue was marginally lower in the Woodie's DIY, Home and Garden business, which it said reflected a positive start to the year and lower demand for seasonal categories in March.
"While we remain alert to macroeconomic headwinds impacting our markets, we are maintaining our operating profit expectations at this relatively early stage of the year," the company said.
Grafton also said today that it intends to introduce a third programme to buy back ordinary shares in the company for an aggregate consideration of up to £50m.
It said the decision reflects its confidence in the prospects for the group, strong balance sheet and cash generation from operations, while at the same time retaining significant capacity to invest in strategic growth opportunities.
Eric Born, Grafton's chief executive, said the company's "resilient" Q1 performance reflects the strength of its diversified businesses and proximity to customers through its federated structure.
"The experienced management teams across the group's portfolio of high-quality businesses have the capability to respond effectively to any changes in trading patterns that may emerge as the year develops," Mr Born said.
"Since joining the group five months ago, I have spent significant time working with colleagues in our businesses to refine our development plans whilst also visiting many potential acquisition opportunities in European markets and I remain confident about the medium-term prospect of increasing shareholder value," he added.
