Cashbuild grows revenue 4% in fourth quarter

Building materials retailer Cashbuild has reported a 4% rise in revenue for the fourth quarter and 3% for the full year.

For the 310 existing stores, revenue increased 3% and the 12 new stores contributed 1% growth, it said in a statement on Tuesday.

Transactions through the tills during the fourth quarter increased 3% from the previous period, with existing stores increasing 2% and new stores contributing 1% growth.

The group adopts the retail accounting calendar, which comprises the reporting period ending on the last Sunday of the month. The year ended June 2024 consisted of 53 weeks, while the year ended June 2023 was 52 weeks.

Though the group traded for 53 weeks in this 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 financial year 2024 year excluding the last week) as well as the statutory period trading (53 vs 52 weeks).

Revenue for the 14-week fourth quarter increased by 13% on the 13-week fourth quarter of the prior financial year, while revenue for the financial year (53 vs 52 weeks) increased by 5%, it said.

Selling inflation was 1.7% at the end of June 2024 when compared to June 2023.

During the fourth quarter, the group opened three new Cashbuild stores, and six for the full-year and closed two Cashbuild underperforming stores.

It refurbished 14 Cashbuild and 2 P&L Hardware stores in the fourth quarter and 18 Cashbuild and two P&L Hardware for the full year, relocated one Cashbuild store, bringing the total number of stores trading at the end of the financial year to 322.

Cashbuild, which caters to low- to middle-income consumers predominantly in townships and rural areas, has stores in SA, Namibia, Lesotho, Botswana, Eswatini and Malawi.

MackenzieJ@arena.africa