Building materials retailer Cashbuild has experienced a significant decline in its final dividend per share, dropping by 51% to 332 cents for the year ending in June 2023, compared to the 677 cents reported the previous year. This decrease reflects a drop in consumer activity.
- Following the publication of the financial results, Cashbuild’s share price fell by over 3% in early morning trade, and over the course of 12 months, the share price has declined by 24.42% to R180.55.
- Revenue for the period decreased by 4.4% to R10.7 billion compared to the same period in 2022 when it stood at R11.1 billion.
- Headline earnings weakened by 38% to R271 million, and headline earnings per share (HEPS) declined by 37% to 1,221.5 cents.
- Gross profit fell by 7.6% during the period, with the gross profit margin percentage dropping from 26.3% to 25.4%.
- Cashbuild reported a 13.7% decrease in net asset value (NAV) per share, falling to R80.68 from R93.50 in June of the previous year. The decrease was partly due to impairing the P&L Hardware Goodwill business by R155.9 million.
- Challenging economic conditions and price inflation impacted the sales of major product ranges such as cement and timber. Total customer transactions decreased by 7.3%, reflecting the deteriorating financial health of consumers.
Cashbuild anticipates ongoing pressure on consumers due to elevated interest rates and high living costs. Additionally, the company expects the South African economy to face challenges in 2024 due to global market conditions and inflationary pressures, compounded by the uncertainty surrounding the upcoming national election.