Building materials retailer Cashbuild has increased its revenue by 6% for the 52 weeks ended June 28 2026, but lower earnings and a loss linked to the disposal of its Malawi business weighed on the retailer’s bottom line.
The hardware chain reported revenue of R12.1-billion, up from R11.5-billion in the previous financial year, supported by higher transaction volumes and contributions from new stores. Gross profit increased 8% to R3.07-billion, while the gross profit margin improved to 25.3% from 24.8%.
However, profit after tax declined by 24% to R172.9-million from R228.8-million previously. Basic earnings per share fell 25% to 786.1 cents, while headline earnings per share decreased 8% to 959.9 cents. The company said the decline was largely due to a R34.9-million loss realised on the disposal of its Malawi subsidiary.
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Cashbuild’s operating profit dropped to R291.6-million from R344-million in the prior year despite stronger sales. Operating expenses increased 9%, while finance costs rose to R158.8-million.
Shutting inefficient stores
During the year, the group opened nine new stores and closed 11 underperforming outlets, comprising five Cashbuild stores and six P&L Hardware stores. It also refurbished 19 stores and acquired a controlling 60.6% stake in Allbuildco Holdings, owner of the Amper Alles hardware brand, for R96.4-million.
The acquisition added three Amper Alles stores in Pretoria and Groblersdal and forms part of Cashbuild’s strategy to broaden its reach into different customer segments. Since its acquisition on December 1, 2025, Amper Alles contributed R193.9 million in revenue and R1.3 million in profit after tax to group results.
Cashbuild ended the year with cash and short-term funds of R2.03-billion, an increase of 4% from the previous year, while inventory levels increased by 7% to R2.04-billion.
The retailer declared a final dividend of R2.33 per share, bringing the total dividend for the year to R6.26 per share, unchanged from the previous year.
Cashbuild stated that revenue for the seven weeks following year-end was at similar levels to the comparable period a year ago. Management expects trading conditions to remain challenging, but it said the group will continue its store expansion, relocation and refurbishment programme in a controlled manner.
The group operates 317 stores across Southern Africa and remains focused on expanding its footprint while maintaining its position as one of the leading retailers of building materials, serving predominantly cash-paying customers.
- Cashbuild's revenue increased by 6% to R12.1 billion for the 52 weeks ended June 28, 2026, driven by higher transaction volumes and new stores.
- Profit after tax declined by 24% to R172.9 million, partly due to a R34.9 million loss on the disposal of its Malawi subsidiary.
- Operating profit dropped to R291.6 million from R344 million, with operating expenses rising by 9% and finance costs increasing to R158.8 million.
- The group opened nine new stores, closed 11 underperforming stores, refurbished 19 stores, and acquired a 60.6% stake in Allbuildco Holdings for R96.4 million.
- Cashbuild ended the year with R2.03 billion in cash and short-term funds, declared a total dividend of R6.26 per share, and plans to continue controlled store expansions amid challenging trading conditions.
