London · Delayed Price · Currency is GBP · Price in GBX Grafton Group Earnings Call Transcripts
Fiscal Year 2026
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Ambitious targets include GBP 850 million free cash flow, >10% EPS CAGR, and 13% ROCE by 2030, driven by organic growth, digitalization, disciplined M&A, and a federated operating model. Regional strategies focus on margin recovery, network expansion, and leveraging digital and own brands for growth.
Fiscal Year 2025
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Revenue grew 10.4% to GBP 2.52 billion and adjusted operating profit rose 7.1%, with strong cash generation and a 60 basis point increase in return on capital employed. Ireland and Iberia outperformed, while Great Britain and Northern Europe faced market headwinds.
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Organic revenue and profit growth returned, led by Ireland and Spain, with UK distribution also improving. Strong cash generation supported shareholder returns and acquisitions, while inflation and market uncertainty remain key risks.
Fiscal Year 2024
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Adjusted operating profit slightly exceeded expectations despite revenue decline, supported by strong cash conversion, geographic diversification, and disciplined cost control. Expansion into Spain and continued investment in branch networks position the group for long-term growth amid cautious near-term outlook.
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Announced the acquisition of Salvador Escoda, a leading Spanish HVAC distributor, to enter the Iberian market and drive growth in a fragmented sector. Trading remains strong in Ireland but challenging in the UK and Finland, with full-year profit expected in line with forecasts. Expansion and integration will focus on organic growth and operational improvements.
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Revenue fell 4.4% and adjusted operating profit dropped 20.9% amid challenging markets, but strong free cash flow enabled a 5% dividend increase and a new GBP 30 million buyback. Irish operations outperformed, while UK and continental segments faced headwinds.