Woodie's DIY and Chadwicks owner Grafton Group has today reported a dip in revenues and profits for 2024 as it saw a strong performance in Ireland while the rate of decline continues to ease in the UK.
Grafton Group's revenues dipped by 1.6% to £2.282 billion from £2.319 billion in 2023, while its adjusted profit before tax fell by 13.1% to £178.9m from £205.9m.
The company said that though most markets remained challenging, overall trading conditions did improve slightly in the final quarter of 2024 compared with the same time last year, with the group returning to average daily like-for-like sales growth in this period.
It said it was pleased with the performance of its Ireland Distribution and Retailing businesses, both of which achieved strong volume increases in 2024 supported by a pick-up in activity in the second half of the year.
Chadwicks delivered higher trading profitability in the year due to higher sales and gross margin growth in a construction market that was broadly flat. It said this improvement was delivered despite housing completions in the year being lower than 2023 and with Repair, Maintenance and Improvement (RMI) demand remaining subdued.
Grafton said that Chadwicks' overall average daily like-for-like revenue up 1.6% with volumes up 4.6%. After modest growth of 0.5% in average daily like-for-like revenue in the first half of the year, where trading was impacted by wet weather, growth accelerated to 2.8% in the second half of the year.
Woodie's also delivered a strong performance in the year, supported by the growth of the Irish economy, it added. Average daily like-for-like sales were up 3.6% in the year with stronger growth of 5.8% in the second half in comparison with growth of 1.4% in the first half of the year when poor weather impacted demand.
Its adjusted operating profit increased to £34.7m from £32.7m as higher sales and gross margin more than offset significant cost challenges.
But its UK Distribution business saw a continuing decline in profitability as RMI demand and consumer confidence remained at historically low levels.
In the Netherlands, trading profitability declined in the year due to a decline in sales, as the RMI market remained weak, and higher overheads, primarily driven by collective wage agreements.
Its Finland Distribution business, IKH, also reported a decline in trading profitability due to challenging market conditions and a contracting Finnish economy.
In October 2024, Grafton bought Salvador Escoda in Spain, which it said further extends its geographical diversification and provides exposure to a new growth market. Integration of the business into the Group is progressing well.
Looking ahead, Grafton said that positive trading conditions are expected to continue in Ireland and Spain, however, markets are anticipated to remain challenging in 2025 in its other markets.
"While inflation is expected to continue to moderate and interest rate cuts to follow, significant levels of macroeconomic and political uncertainty remain across the global economy.It is not yet known what impact the new US administration will have on trade with potential scope for new tariffs," the company added.
