Cashbuild, the largest retailer of building materials in South Africa, said revenue increased 5% in its third quarter, and the increase was 4% if one excludes the opening of new stores, growth that barely exceeds inflation.
Cashbuild’s share price slipped 1.82% to R156.06 on Thursday morning after the operational update was released, a price slightly higher than the R148.01 it traded at a year ago, but well down from the R226.98 that it traded at in December. By the end of February, the annual consumer price inflation in South Africa was 3.2%.
The company had 308 stores prior to July 2023. This growth in revenue for the quarter, combined with the results for the half year to February 29, 2024, equated to a 5% increase in revenue year to date. The opening off 11 new stores in total contributed to a 1% increase in revenue in the quarter.
Transactions through the tills during the third quarter increased by 7%, with existing stores increasing by 6% and new stores by 1%.
Selling inflation was 1.6% at the end of March 2025, when compared to March 2024.
In Cashbuild South Africa, total growth in revenue was 6% year-to-date, while in the third quarter it grew by 5%. In Cashbuild’s common monetary areas of operation, growth was flat.
P&L Hardware South Africa quarterly sales were down 8% but were up 2% year-to-date.
During the third quarter, the group opened two new stores and closed one store at the expiration of its lease, bringing the total number of stores trading at the end of the quarter to 319.
During the current financial year, the group has opened 5 new stores and closed 7 P&L Hardware stores and 1 Cashbuild store.
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