Cashbuild reports increase in FY headline earnings

Cashbuild, a leading retail company in South Africa, reported a significant increase in headline earnings per share, driven by a surge in revenue and operating profit. The CEO of Cashbuild, Werner de Jager, attributes this success to the company's strict cost management and increased gross margins. Despite a slight increase in costs, mainly driven by salary hikes and higher incentives for staff, Cashbuild remains satisfied with their financial performance. The company also faced challenges in the supply chain due to disruptions caused by the pandemic, but managed to increase their stock holding to meet demand. Looking ahead, Cashbuild anticipates challenges during the peak trading season in December. While the company traditionally does not directly benefit from government infrastructure spending, they expect indirect benefits through increased employment and consumer spending. Cashbuild's operations outside of South Africa also showed positive results, with plans for further expansion in the coming years. Despite challenges such as taxation and political changes in countries like Zambia, Cashbuild remains committed to growth in these regions. Overall, Cashbuild's strong performance and strategic planning position the company for continued success in the future.