Cashbuild sales rise, but consumer pressure squeezes earnings

JSE-listed building materials retailer Cashbuild Limited has reported a 6% increase in revenue to R12.1 billion for the 52-week financial year ended 28 June 2026. However, headline earnings per share (Heps) fell 8% as cost inflation and divestment losses weighed on profitability.

Despite the drop in headline earnings, the board declared a final dividend of 233 cents per share. This brings the total dividend for the year to 626 cents per share, maintaining payout levels unchanged from the prior comparative period.

Cashbuild share price

Revenue and operating performance

Group top-line growth was supported by pre-existing store sales and expansion initiatives, including the acquisition of three Amper Alles stores effective 1 December 2025. Pre-existing stores (297 locations) generated 2% revenue growth, while 20 new stores contributed an additional 4% to growth.

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Cashbuild navigates weak DIY demand with steady growth

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On the top line, group revenue rose 5.5% to R12.11 billion from R11.48 billion, driving a 7.8% gain in gross profit to R3.07 billion (up from R2.84 billion) and lifting the gross profit margin to 25.3% from 24.8%. However, bottom-line metrics came under pressure as headline earnings dropped 8.8% to R196.0 million, pushing headline earnings per share down 7.7% to 960 cents from 1 040 cents, while basic earnings per share fell 24.6% to 786 cents from 1 043 cents in the prior period.

The divergence between basic EPS and Heps was primarily driven by a R34.9 million loss realised on the disposal of the group’s subsidiary in Malawi and its two stores. Normalised operating profit, excluding the Malawi disposal loss and RCA income, increased by 8.7% to R311 million.

Store network and portfolio adjustments

Operating across 317 stores at the reporting date, Cashbuild executed several portfolio rationalisation and network expansion steps during the period:

New openings: 9 new stores opened.
Acquisitions: 3 Amper Alles stores acquired
Closures: 11 underperforming stores closed (5 Cashbuild and 6 P&L Hardware stores).
Disposals: Disposed of the Malawi subsidiary, including 2 stores.
Refurbishments: 19 stores refurbished during the financial year.

Operating expenses increased by 7.3% (excluding the Malawi disposal loss) due to necessary cost increases, while comparable store operating expenses rose by 5.4%.

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Balance sheet and market outlook

Cash and short-term funds increased by 4.3% to R2.03 billion. Inventory levels grew 6.8% (including new stores), with stockholding days remaining stable at 97 days compared to 96 days in 2025.

Regarding operating strategy and market conditions, Werner de Jager, CEO of Cashbuild, stated: “Cashbuild will continue to expand and invest in its store footprint, and remain focused on affordability, accessibility and relevance. We will continue to provide value-driven DIY and building material solutions that enable customers to maintain and improve their homes, supported by disciplined cost management, operational efficiency and strong in-store execution.”

For the first seven weeks of the 2027 financial year, group revenue traded at similar levels compared to the comparative period. Management expects trading conditions to remain constrained due to high unemployment, affordability pressures, and elevated living costs, which are affecting consumer spending.

Read: Cashbuild revenue up 3% to R11.5bn

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