Grafton Group PLC (ISE:GFTU) raised its guidance for full-year profits following stronger-than-anticipated trading despite supply chain disruption and rising inflation.
The building materials and DIY group now expects adjusted operating profit from continuing operations for full-year 2021 to be in the range of £265mln-£270mln, above analysts' forecasts of £256mln.
The positive revenue trends seen in the first six months of the year have continued, with good demand in the group's markets and with trading conditions normalising following the easing of COVID-19 restrictions, it said in a trading statement.
Total revenue from continuing operations, excluding the traditional merchanting business in Great Britain that is being divested, increased by 28.3% to £1.76bn in the 10 months to 31 October 2021 from £1.37bn in the same period in 2020 and by 27.1% from £1.39bn in the same period in 2019.
“2021 has been an exceptional year for Grafton as the strength of DIY activity and an inflationary surge in building materials prices had a very positive impact on volumes, revenue and gross margins,” the group said, although it noted that supply chain disruption and pricing pressure remain a challenge for its suppliers and customers.
In the UK, Selco performed strongly with average daily like-for-like growth of 7.15% in the four months to end-October, measured against a demanding growth rate of 10.8 per cent in the same period last year.
In Ireland, revenue growth in the Woodie's DIY, Home and Garden business moderated as anticipated following the reopening of non-essential retail and leisure activities in May.