(Alliance News) - Grafton Group PLC on Thursday said it delivered an annual adjusted operating profit slightly ahead of analysts' expectations, as it announced a higher dividend and started a share buyback.
The Dublin-based building materials distributor and DIY retailer said pretax profit fell 17% to GBP152.5 million in 2024 from GBP183.5 million in 2023.
Revenue fell 1.6% to GBP2.28 billion from GBP2.32 billion.
The company highlighted a strong performance in Ireland, while it noted the rate of decline continued to ease in the UK.
Further, it said it returned to average daily like-for-like sales growth against easier comparators in the final quarter of the year.
Adjusted operating profit fell 14% to GBP177.5 million in 2024 from GBP205.5 million in 2023, which Chief Executive Officer Eric Born highlighted beat analysts' expectations of around GBP169.1 million for 2024.
CEO Eric Born said: "This resilient performance was supported by our exposure to different geographies, our diversified customer base and the active management of gross margin and costs."
The company recommended a final dividend of 26.5p, up a notch from 26.0p a year prior. This brings the total dividend to 37.0p for 2024, up 2.8% from 26.0p in 2023.
Further, Grafton announced a new share buyback programme worth up to GBP30 million, starting immediately and ending no later than August 31.
Looking ahead, the company said the Irish economy is expected to continue to grow in 2025, while in the UK it remained cautious on the near-term outlook for a recovery in repair, maintenance & improvement demand.
In the Netherlands meanwhile, the outlook for construction in 2025 is improving, while the Finnish economy is expected to return to modest growth.
Spain's economy is expected to continue to grow, supported by population growth and a general housing shortage.
CEO Born said: "The integration of Salvador Escoda continues to progress well, extending our geographic diversification and exposure to a new growth market, presenting an attractive opportunity to build further scale across the Iberian Peninsula in due course. Whilst the timing of recovery in certain geographies remains uncertain, the medium term outlook is positive. We will continue to strengthen our positions in existing markets and are excited by the development opportunities ahead."
In October, Grafton said it completed the acquisition of Salvador Escoda SA from Escoda Sans. Salvador Escoda is a distributor of air conditioning, ventilation, heating, water and renewable products serving professional installers across the residential, commercial and industrial sectors.
Grafton shares rose 5.7% to 869.00 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News slot editor
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