Cashbuild’s earning growth slows as tough conditions bite
Building material retailer Cashbuild on Tuesday reported slower earnings growth in the year to end-June, reflecting a tough trading environment. Cashbuild, which typically serves home builders and improvers in the lower Living Standards Measure (LSM) categories, reported an 8% increase in headline earnings to R464.4m. In the year to end-June 2016, headline earnings were up 23%. "This year has been one of Cashbuild’s more challenging periods with consumer spend in the LSM categories that we serve … under severe pressure," CE Werner de Jager said in a statement He said that the acquisition of P&L Hardware and the new Cashbuild stores opened during the year had had a positive effect on the company’s results for the year under review. Group revenue was up 12% to R9.7bn from R8.7bn, with the bulk of the contribution coming from P&L Hardware, which Cashbuild acquired in 2016. Selling price inflation was only 2%, while gross profit percentage decreased to 25.5% from 26.1% in the previous y...
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