Hardware retailer Cashbuild has grown revenue by 9% in the third quarter, with new stores accounting for more than half of that.
Releasing a voluntary operational update for the third quarter ended March on Thursday, the group said revenue for the 301 existing stores increased by 4%, while the 16 new stores contributed 5% growth.
For the year to date, revenue is 5% higher.
Comparable store revenue growth, excluding Amper Alles, Cabifit and other new stores, P&L Hardware closures and the Malawi entity disposal, is 6% for the quarter and 3% for the year to date, the group said.
Cashbuild’s South Africa operations contributed 83% of sales, followed by Cashbuild Common Monetary Areas at 6%.
Transactions through the tills increased by 8% in the third quarter, with existing stores up 4% and new stores rising by the same margin.
Selling inflation was 0.6% at the end of March compared with a year ago.
Cashbuild opened one new store in the March quarter and closed six underperforming stores, bringing the total number of stores trading at the end of the quarter to 317. The group sells quality building materials and associated products direct to a predominantly cash-paying customer base through its chain of stores.
Cashbuild previously reported that headline earnings were up 16% at R138.5m for the six months ended December. It declared an interim dividend of 393c, up 21%.
At the release of the interim results, the group warned that trading conditions would remain challenging, but said it would continue its store expansion, relocation and refurbishment strategy in a controlled manner.
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