(Alliance News) - Grafton Group PLC on Wednesday said revenue in 2022 was higher than in 2021 and up 40% from pre-pandemic 2019, as it noted favourable trends in Ireland and the Netherlands but a slowdown in the UK.
The Dublin-based building materials firm, owner of Selco Builders Warehouse, also benefited from its summer 2021 acquisition of Finnish wholesaler Isojoen Konehalli Oy & Jokapaikka Oy, with revenue in Finland surging.
Grafton said revenue grew 9.1% to GBP2.30 billion in 2022 from GBP2.11 billion in 2021 and was up 40% from GBP1.64 billion in 2019. Citing good conditions in Ireland and the Netherlands, the company said revenue was "supported by good underlying demand and building materials price inflation" in the two countries. Its business in Ireland revenue grew by 14% while Netherlands revenue climbed by 16% in 2022 compared to 2021.
Revenue in Finland more than doubled. "The recovery in demand in the IKH workwear, tools and spare parts business that developed earlier in the second half gained further momentum in the final months of the year supported by generally resilient activity in end markets," Grafton said. The company bought Finnish wholesaler Isojoen Konehalli Oy & Jokapaikka Oy for EUR199.3 million in July 2021.
Meanwhile, trading conditions in the UK continued to soften amid a decline in volumes. Total revenue in 2022 grew by just 2.0%.
Meanwhile, Retailing revenue in 2022 was down 14% in sterling terms from a year before.
For the period from November 1 to December 31, average daily like-for-like Retailing revenue was down 1.7% compared to a year before on a constant currency basis, though was up 20% on three years before.
In the same period, average daily like-for-like UK distribution revenue was down by 0.5% from a year prior on constant currency. In Ireland and the Netherlands, the same was up by 0.8% and 11%, respectively. In Finland, it was up 8.9%.
Looking ahead, Grafton expects its 2022 adjusted operating profit before property profit to exceed the top end of analysts' forecasts of a range of GBP243.5 million to GBP249.5 million. The top end of the forecasts would be 8.0% lower than GBP271.2 million in 2021.
Grafton shares were 3.9% higher at 870.50 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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Grafton Group (GFTU)