Cashbuild FY HEPS down 22%

Cashbuild, a Southern African buildings materials retailer, recently reported its financial results for the 2024 financial year. The company faced similar economic and trading challenges as the previous year, with a 5% increase in revenue to R11.5 billion, but a 22% decrease in headline earnings per share. Werner de Jager, CEO of Cashbuild, discussed the company's performance and outlook in an interview with CNBC Africa. De Jager noted that the fourth quarter showed some improvement, with revenue growth of 4% and a subsequent 5% increase in the first six weeks after the year-end. While this uptick is promising, De Jager remained cautious about declaring a full recovery. He acknowledged positive factors such as reduced load shedding, cooling price pressures, and increased consumer and business confidence resulting from peaceful elections. These factors could potentially benefit Cashbuild's business in the year ahead. De Jager also touched on the company's operations in neighboring countries like Namibia, Lesotho, Eswatini, and Botswana. While most markets have shown stability, Malawi's economic challenges have impacted Cashbuild's two stores in the country. Looking ahead, Cashbuild plans to focus on opening new stores, particularly in South Africa, to capitalize on growth opportunities. Despite facing competition from cheaper imports, Cashbuild remains committed to offering quality products at affordable prices to retain its customer base. While optimistic about the potential tailwinds for the business in the coming year, De Jager also expressed concern about ongoing power supply issues that could impact the company's bottom line. Overall, Cashbuild is cautiously optimistic about its outlook for the future, with a focus on navigating external uncertainties to drive growth and profitability.