UK-based builders' merchant and home improvement retailer Travis Perkins has reported that its operating profit declined by 31.8% to £107m ($137.4m) in the first half (H1) of fiscal year (FY) 2023.

The retailer’s adjusted operating profit and profit after tax decreased by 31.3% and 43.4%, respectively, over the FY.

For the six months which ended 30 June 2023, Travis Perkins generated total revenue of £2.47bn, down 2.5% from £2.53bn in the same period a year ago.

The decline was attributed to the lower volumes of new build housing and private domestic RMI markets in the Merchanting business.

Its basic earnings per share (EPS) dropped 42.5% to 28.6p and its adjusted EPS declined 40.9% to 30.5p in H1 FY23.

The retailer expects revenues for the second half of FY23 to remain in a low single-digit decline.

It anticipated its adjusted operating profit for the full year to be approximately £240m.

Travis Perkins chief executive officer Nick Roberts said: “Market conditions have been challenging, which is reflected in both our first half performance and our outlook for the balance of the year. The Group remains focused on striking the appropriate balance between seeking to protect shorter-term profitability, delivering our strategic objectives and being well-placed to benefit when market conditions improve.

“Given the market backdrop, we are relentlessly focused on meeting our customers’ needs in core categories and supporting our local branch managers to grow share of wallet, particularly with general builder and professional trade customers, by making it simpler and easier to transact with us through our digital channels and in our branches.”