Cashbuild, one of southern Africa’s largest retailers of quality building materials and associated products, selling directly to a predominantly cash-paying customer base through 318 stores, reported its results for the financial year ended 29 June 2025.
WORDS & PHOTOS: SUPPLIED
The Group’s results for the financial year showed positive growth trends, but as a result of above inflationary cost increases, margins came under pressure despite good cost controls. The Group’s average selling price inflation remained steady at 1.7%.
However, the average basket size declined by 1.1%, from R737 in 2024 to R729. This decrease is primarily attributed to a shift in customer mix, with a higher proportion of retail shoppers compared to “bakkie” builders.
Customer transactions growth
Total customer transactions grew by 5.8% on a 52-week comparable basis, slightly outpacing revenue growth, largely due to the same shift in shopper profile.
At financial year end, Cashbuild had 318 stores (2024: 322 stores). During the year, Cashbuild opened eight (8) new stores (seven (7) Cashbuild and one (1) P&L Hardware) and refurbished 26 stores.
Twelve (12) stores were closed due to underperformance during the year, comprising 11 P&L Hardware stores and one (1) Cashbuild store. Cashbuild also relocated one (1) P&L Hardware store and converted six (6) P&L Hardware stores into Cashbuild Small/Alternative Model Stores (SMS).
The Group adopts the retail accounting calendar, which comprises the reporting period ending on the last Sunday of the month (year ended June 2025 – 52 weeks; June 2024 – 53 weeks). Although the Group traded for 53 weeks in the prior financial year, it is appropriate and in line with generally accepted practice in the retail sector to illustrate the comparative 52-week period (being the 53 weeks of the FY2024 year excluding the last week), which is the analysis adopted for this press release.
Revenue, operating expenses
Group revenue increased by 5% to R11.5 billion from R11.0 billion. Revenue for stores in existence prior to July 2023 (pre-existing stores – 304 stores) increased by 4%, with our 14 new stores contributing 1%. Gross profit also increased by 5% to R2.8 billion (2024: R2.7 billion) with the gross profit margin improving marginally from 24.7% to 24.8%.
Operating expenses increased by 5% after adjusting for the impairment and 53rd week expenses, existing stores contributing 4% and new stores 1%.
Operating profit increased by 28% to R344 million (2024: R269 million) with the operating profit margin increasing to 3.0% (2024: 2.5%).
Basic earnings per share increased by 163% from 396 cents (2024) to 1 043 cents, with headline earnings per share up 10% from 947 cents (2024) to 1 040 cents.
CEO Werner de Jager comments
Cash and cash equivalents, including Short-term funds, increased to R1 949 million due to June 2025 suppliers’ payments processed after financial year cut-off, in contrast to the prior year where the payments were processed before financial year cut-off.
Net asset value per share increased by 4%, to R79.96 (2024: R76.67) during the financial year.
The Board declared a final dividend of 300 cents. As a result, the total dividend amounts to 626 cents per share, an increase of 12% on the previous total dividend of 561 cents per share.
Werner de Jager, CEO of Cashbuild, concluded: “As we look ahead to 2026, we remain cautiously optimistic despite the unrelenting challenges facing our core customer base. Consumer sentiment remains fragile, especially among lower-income households. Although some relief has come through social support measures and lower interest rates, the persistently high cost of living, including energy costs, have eroded disposable income and dampened spending confidence. Despite being cautious, Group revenue for the seven weeks subsequent to year end is 6% higher than the prior year’s comparative seven-week period, which is pleasing.”
