The Grafton Group, a leading building-materials distributor based in London, has announced a significant increase in revenue despite slightly softer-than-expected market conditions. The company reported a 1.7% rise in revenue to £1.96 billion ($2.41 billion) for the first 10 months of the year, with September and October proving to be challenging months.
Despite these market challenges, Grafton Group remains confident in its ability to meet market expectations for profit. This is primarily due to the implementation of cost reduction measures earlier in the year and a strong commitment to cost discipline. Market consensus expectations sit around £198.1 million for full-year operating profit, while the company achieved a statutory operating profit of £264.3 million in 2022.
Although overall demand was slightly subdued in the four months leading up to October, Grafton Group remains optimistic about future opportunities. Chief Executive Eric Born emphasized the company's strong balance sheet and cash generative operations as resources for organic business development and potential acquisitions. Grafton Group is actively engaged with potential vendors to expand its reach in targeted European markets.
With the company's unwavering commitment to growth and resilience in the face of market challenges, Grafton Group is solidifying its position as a leading player in the building-materials industry.