Cashbuild builds strong results in tough climate
CASHBUILD, a major retailer of building materials in Southern Africa, reported a "strong set of results" for the six months ended-December, excluding a once-off empowerment cost of R63m."It’s a pleasing set of results," CEO Werner de Jager said on Tuesday. He said it had grown its pipeline of products, keeping costs in check, and the gross margin intact."If (all this) comes in at the right level, it (positively) filters down to the bottom line."Excluding the once-off costs, operating profit shot up 32% to R331m, resulting in a record operating profit margin of 7.3%, compared to the 6.3% achieved in the period to December 2014.Revenue rose 14% to R4.5bn. Fifteen new stores that were opened after July 2014 contributed 3% to revenue growth, with the pre-existing 213 stores contributing 11% of revenue growth.This increase was achieved in "tough trading conditions", the group said, as gross profit percentage was maintained at 23.7%.The group, which sells directly to cash-paying customers...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.