Cashbuild, the prominent building materials retailer, has announced a 5% increase in revenue for the first quarter of its 2025 financial year. The growth stems from a combination of performance from existing stores and the impact of newly opened locations.
Revenue from the 315 stores operating before July 2023 rose by 4%, while the addition of six new stores contributed 1% to overall growth. Transactions increased by 3% compared to the previous year, with new stores adding less than 1%. Selling inflation stood at 1.4% as of the end of September.
In terms of contributions to total sales, Cashbuild SA accounted for 82%, while P&L Hardware SA made up 8%. During the quarter, the retailer closed one underperforming store, refurbished three, and relocated another, bringing the total number of operating stores to 321.
Despite the revenue uptick, challenges persist. Cashbuild faced a tough trading environment marked by an influx of low-quality imports, which previously impacted its earnings. The retailer reported a significant decline in earnings for the 53 weeks ended June, with headline earnings per share dropping by 22%.
Operating profit also fell 19% to R189 million, with operating expenses rising by 6%. The CEO expressed disappointment with the results, linking the earnings decline to impairments at P&L and Cashbuild’s aggressive pricing strategy during the period.