Building materials retailer Cashbuild has reported a 5% rise in revenue in the first quarter of its 2025 financial year.
For the 315 existing stores (in existence before July 2023), revenue increased by 4% and the six new stores contributed 1% growth, it said in an operational update on Thursday.
Transactions through the tills increased 3% compared with a year ago, with new stores contributing less than 1% growth. Selling inflation was 1.4% at the end of September.
Cashbuild SA contributed 82% to total sales, followed by P&L Hardware SA at 8%.
During the first quarter the group closed one underperforming store, refurbished three and relocated one store bringing the total number of stores trading at the end of the first quarter to 321.
Business Day reported in September that Cashbuild CEO Werner de Jager said an influx of low-quality imports in recent years had weighed on the building materials retailer, with it reporting a big earnings slump in its latest annual results.
In line with the tougher trading environment, Cashbuild reported lower earnings for the 53 weeks ended June, with headline earnings per share falling 22% to 947.2c. The prior year contained 52 weeks.
Operating profit fell 19% to R189m and, excluding impairments, was down 16%. Operating expenses increased 6%.
De Jager expressed disappointment at the results, attributing the reduction in earnings to P&L’s impairments, as well as Cashbuild’s aggressive pricing strategy over the period.
With Jacob Webster
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