The building materials and associated products retailer reported that revenue increased from 6.31 billion rand in 2012 to 6.37 billion rand in 2013.
“Revenue for the year increased by 1 per cent whilst operating profit decreased by 19 per cent, largely due to operating expenses increasing by 6 per cent. Cash, cash equivalents and financial assets have decreased by 49 per cent to 249 million rand as a result of increased capital expenditure and stockholding,” Cashbuild said in a statement.
[DATA CSB:Cashbuild] has 203 stores in South Africa, Namibia, Lesotho, Botswana, Swaziland and Malawi and employs in excess of 4 500 people.
“Stores in existence since the beginning of July 2011 decreased by 1 per cent in revenue and the 13 new stores contributed 2 per cent. This increase for the year has been achieved in tough trading conditions with selling price inflation of 2 per cent,” the group had said.
The retailer reported a 19 per cent decrease in operating profit from 400 million rand in 2012 to 322 million rand in 2013 while profit before income tax also decreased by 19 per cent from 433 million rand to 352 million rand.
Profit for the year was down 15 per cent from 293 million rand in 2012 to 248 million rand in 2013 and diluted earnings per share decreased by 17 per cent 1,257 cents to 1,038 cents.
Cash generated from operations however increased from 151 million rand in 2012 to 156 million rand in 2013.
“Despite tough trading conditions, management is positive about the top line trading prospects for the next quarter. The first eight trading weeks since year-end have reported an increase in revenue of 10 per cent on that of the comparable eight weeks, whilst the gross margin remained under pressure,” Cashbuild had said.