Cashbuild, one of South Africa’s leading building materials retailers, reported a steady financial performance for the six months ending in December. The company recorded a 5% increase in revenue, reaching R6.1 billion, while headline earnings per share grew by 4% to 572.8 cents. Despite these gains, the group faced a challenging economic environment, with operating profit rising to R174 million from R50 million in the previous period. However, excluding prior period goodwill and trademark impairment losses related to P&L Hardware, operating profit actually declined by 7%. The company maintained its interim dividend at 326 cents per share, unchanged from the previous year.
Cashbuild operates 318 stores, catering primarily to cash-paying customers, including low- to middle-income homebuilders, contractors, and farmers. Over the reporting period, the company expanded its footprint by opening three new stores and refurbishing 14, while one store was relocated. However, seven underperforming stores were shut down, reflecting ongoing efforts to optimise the business in response to tough market conditions. The group saw a 6% year-on-year revenue increase in the seven weeks following December, but adverse weather conditions have since negatively impacted sales.
Although recent economic developments, such as the introduction of the two-pot retirement system, interest rate cuts, and lower inflation, were expected to provide relief to the retail sector, Cashbuild remains cautious about the outlook for 2025. While reduced financial pressures may benefit consumers, the company acknowledges that the broader economic recovery remains uncertain. With ongoing operational adjustments and a focus on market stability, Cashbuild continues to navigate a challenging retail landscape while positioning itself for long-term resilience.