Cashbuild sales of its building and construction materials and products through its retail stores continue to be dampened by weak disable incomes among consumers and low economic activity. Picture: Simphiwe Mbokazi/Independent Newspapers
Cashbuild’s revenue from the sale of its building and construction material supplies increased by 6% in the second quarter compared with the same three months a year before, the retailer said in an operational update on Thursday.
Revenue from existing stores - for the 309 stores in existence prior to July 2023 - increased by 5%, while the 9 new stores contributed 1% growth.
This, combined with the first quarter, equated to an increase in revenue for the half year to December 29, 2023, of 5% compared to the prior half year ended December 24, 2023.
Transactions through the tills increased by 8% (half year: 5%), with existing stores increasing by 7% (half year: 4%) and new stores contributing 1% (half year: 1%).
Selling inflation was 1.5% at the end of December 2023 compared with the second half of 2023.
Three new stores were opened in the second quarter (half year: 3), 6 underperforming stores were closed (half year: 7), and 11 were refurbished (half year: 14), bringing the total number of stores trading at the end of the half year to 318.
The group’s 54 P&L Hardware Stores, which have a presence in Limpopo, Mpumalanga, Gauteng, and the Eastern Cape, increased revenue by 9% in the first quarter and by 6% in the second quarter to December 29, while the growth rate was 7% for the half year period.
Cashbuild South Africa's revenue increased by 6% in the group’s first and second quarters, and the growth was 6% for the half year. New stores had added one percentage point to that growth over the period.
In its last financial year to June 30, 2024, headline earnings fell almost 26% to about R200 million after revenue increased by 5% to just over R11 billion, amidst very sluggish economic conditions and falling disposable incomes.
The share price gave up 1.22% Thursday afternoon on the JSE, with the R201.60 price being 22% higher than what it traded at a year before.
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