FX.co ★ Grafton Group Jan 1 - Apr 21 Group Revenue Down; Stock Dips

Grafton Group plc, a prominent distributor of building materials and DIY retail company, recently announced a decrease in its Group revenue. In the period from January 1 to April 21, the company amassed 669.2 million pounds, which is a 5% decline compared to the 704.3 million pounds of the preceding year. If we consider the constant currency, the Group revenue suffered a 3.3% fall.

In its trading update, Grafton Group acknowledged that the sluggishness in trade during the early and less significant months of the financial year stemmed from the predominant macroeconomic conditions in its distinct markets. This was further worsened by the exceptional rainfall in Ireland and the UK which negatively affected demand.

Merchanting UK revenues slipped by 6.2% and manufacturing revenues tumbled by 17.2%. On the whole, business activity during this period remained stagnant, with the average daily like-for-like revenue falling by 4.5% when compared to the previous year.

Eric Born, the Chief Executive Officer of Grafton Group, stated, "Our markets presented a challenging trading environment during this period. Revenue trends were also hampered by price deflation and extreme rainfall in Ireland and the UK. Though we're not anticipating a substantial market recovery in the short term, we do envisage a slight boost in profitability, particularly towards the second half of the year."

Born also confidently spoke of the intrinsic demand fundamentals and expressed optimism regarding the medium-term outlook for its markets. However, in London, the shares of Grafton Group were seen trading at 915.90 pence, down by 2.40%.