Cashbuild reports marginal results

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This is while revenue is up 7 per cent to 3.5 million rand for the six months ended 31 December 2013, from 3.3 million rand in the comparative period in 2012.

Operating profit down 3 per cent also decreased to 190.9 million rand from 196.1 million rand in 2012.

“Cashbuild has built its credibility and reputation by consistently offering its customers quality building materials at the lowest prices and through a purchasing and inventory policy that ensures customers’ requirements are always met,” the company said in a statement.

[DATA CSB:Cashbuild] is a mass retailer of building materials, with stores in South Africa, Namibia, Lesotho, Botswana, Swaziland and Malawi. 

Headline earnings were down 8 per cent to 600 cents from 650.8 cents in 2012. Net asset value per share was however up 13 per cent to 4,233 cents from to 4,799 cents.

The company’s cash and cash equivalents also increased by 53 per cent to 788 million rand, which was as a result of payments to suppliers – to the amount of 528 million rand – being effected after half year-end close.

“Stores in existence since the beginning of July 2012 (191 stores) increased by 3 per cent in revenue, and the 16 new stores contributed 4 per cent,” the company explained.

“This increase for the period has been achieved in tough trading conditions with selling price inflation of 4 per cent. Within the competitive environment, gross margin percentage remained at 22.9 per cent.”

Revenue for South Africa’s Cashbuild segment amounted to three million rand from 2.9 million rand in 2012, but operating profit however decreased to 166 million rand from 173.2 million rand.

Its Namibia, Swaziland and Lesotho segment recorded a 299.4 million rand increase in revenue from 257.6 million rand in 2012. Operating profit also significantly increased by 19.5 million rand from 12.6 million rand in the previous year.

Revenue for its Botswana and Malawi segment increased to 162.2 million rand from 142.6 million rand in 2012. Operating profit took a dive from 10.2 million rand in 2012 to 5.4 million rand.

“Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, applying the same rigorous process as in the past,” said Cashbuild.

“Despite the first 6 weeks trading since period-end having increased by 10 per cent to the prior comparative period, management remains cautious about top line trading prospects for the remainder of the financial year.”