Cashbuild, the Johannesburg-listed hardware retailer, recorded a 9% rise in third-quarter revenue, with recently opened outlets contributing more than half of that growth. The company disclosed in a voluntary operational update for the period ended March that its 16 new stores delivered 5 percentage points of the increase, while the 301 existing locations managed a more modest 4% gain. For the financial year to date, group revenue now stands 5% higher than the comparable prior period.
South Africa remains the dominant market, accounting for 83% of total sales, followed by the Common Monetary Area nations which contribute 6%.
Transaction volumes through the group’s tills increased by 8% during the quarter, split evenly between existing stores and newer locations. Selling inflation measured 0.6% at the end of March compared with the same point a year earlier, a figure that suggests limited pricing power in a competitive home improvement market.
The company opened one new store during the three-month period while closing six underperforming locations, reducing its net trading estate to 317 stores by quarter end. This pruning of weaker assets follows a broader industry trend, as retailers in the building materials sector face pressure from constrained household spending and elevated borrowing costs. Cashbuild sells primarily to cash-paying customers, a segment particularly sensitive to economic downturns.
READ – Cashbuild is Putting Faith on New Stores to Beat a Retail Slump
Looking at comparable store revenue, which excludes the Amper Alles and Cabifit brands, newer outlets, P&L Hardware closures, and the disposal of its Malawi entity, the picture is slightly stronger. On that basis, revenue increased 6% for the quarter and 3% for the year to date, indicating that underlying operational performance at mature stores remains resilient despite a difficult trading climate.
The group had previously reported a 16% rise in headline earnings to R138.5 million for the six months through December, alongside a 21% increase in its interim dividend to 393 cents per share. At the time of that interim release, management warned that trading conditions would stay challenging but reaffirmed a commitment to a controlled programme of store expansion, relocations, and refurbishments. The latest quarterly update suggests the company is adhering to that disciplined approach.