Staff Writer
Cashbuild’s revenue increased by 6% for the period ended June 2026, but earnings were dragged down by a R34.9 million loss linked to the disposal of its Malawi subsidiary.
The southern African building materials retailer said revenue from its 297 pre-existing stores rose by 2%, while 20 new stores contributed a further 4% to group growth.
Transactions through Cashbuild’s tills increased by 5%, while selling price inflation stood at 1.5% at the end of June.
Gross profit increased by 8%, with the gross profit margin improving to 25.3% from 24.8% in the previous period.
However, operating expenses rose by 9%. Excluding the loss on disposal of the Malawi subsidiary, operating expenses increased by 7%.
Basic earnings per share fell by 25%, while headline earnings per share declined by 8%. Cashbuild said the difference was mainly attributable to the R34.9 million loss realised on the disposal of the Malawi business.
The group’s effective tax rate increased to 29.2% from 26.5%.
Cash and short-term funds increased by 4% to R2 billion, while inventory, including stock held at new stores, increased by 7%. Stock days remained broadly unchanged at 97 days.
During the period, Cashbuild opened nine new stores and closed 11 underperforming outlets, comprising five Cashbuild stores and six P&L Hardware stores.
The group also acquired three Amper Alles stores and disposed of its Malawi subsidiary, which operated two stores. A further 19 stores were refurbished during the period.
Cashbuild said it would continue with its store expansion, relocation and refurbishment strategy, but would do so in a controlled manner through its feasibility process.
The retailer said the opening and conversion of stores to its Cashbuild small model stores format remained on track.
Looking ahead, Cashbuild said group revenue for the seven weeks following the end of the reporting period was at similar levels to the comparable seven-week period last year. Management expects trading conditions to remain challenging.
