Cashbuild, a leading retailer of building materials and related services, on Thursday reported an increase in revenue for the second quarter of the 2025 financial year, driven by growth in existing stores and contributions from new stores.
The company’s revenue for the second quarter of the 2025 financial year increased 6% compared with the same quarter in the previous year. For the 309 existing stores, revenue grew 5%, while the nine new stores opened since July 2023 contributed 1% to the overall revenue growth.
This performance brings the total revenue growth for the half-year ended December 29 to 5% compared with the previous half-year. Transactions through the tills increased 8% for the quarter, with existing stores reporting a 7% increase.
The company said its revenue performance was driven by growth in its SA operations, which accounted for 83% of total sales. The company’s operations in the Common Monetary Area, which includes countries such as Lesotho, Namibia and Eswatini, reported a 1% increase in revenue for the quarter.
During the quarter, Cashbuild opened three new stores, closed six underperforming stores and refurbished 11 stores. The total store count now stands at 318.
The company said it had been investing in its operations, including the rollout of new store formats and refurbishments of existing stores.
The company’s shares have been trading sideways in recent months, reflecting the challenges facing the building materials retail sector in SA.
In October, CEO Werner de Jager said an influx of low-quality imports in recent years had weighed on the building materials retailer.
P&L Hardware, Cashbuild’s subsidiary that trades in the lower end of the economy, has been particularly threatened by the surge in competition.
Despite this, De Jager said he was positive about the 2025 financial year. He said the company is more optimistic about the outlook as it believes the government’s efforts towards unity and, to a lesser extent, the two-pot retirement system, will stimulate economic growth, while much-needed infrastructure programmes will gain traction during the 2025 calendar year.
With Jacqueline Mackenzie
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