Cashbuild reported higher revenue and gross margins for the 52 weeks ended 28 June 2026, despite continued pressure on consumers’ disposable income.
The building-materials retailer, which serves a predominantly cash-paying customer base through 317 stores, said revenue increased by 5.5% to R12.1 billion. Comparable-store revenue rose by 4.2%.
Average selling-price inflation remained stable at 1.5%, while the average basket size increased by 0.7% to R734. Customer transactions rose by 4.8% on a 52-week comparable basis.
Gross profit increased by 7.8%, with the gross profit margin improving from 24.8% in 2025 to 25.3%.
Cashbuild said consumers continued to face affordability challenges amid a fragile economy and political uncertainty.
Chief operating officer Shane Thoresson said in an interview that Cashbuild's revenue for the seven weeks after year-end was at similar levels to the comparable period a year earlier.
However, he said the group remains cautiously optimistic, noting that the start of the previous year had been relatively strong and that it had a pipeline of 15 potential new stores.
Luresha Chetty, senior equity analyst at Ashburton Investments, said high energy prices and the threat of El Niño-driven food inflation were likely to continue weighing on disposable income in the short term.
“However, we have seen some pivoting from the management team, which we feel better positions the group for future growth,” Chetty said.
Chetty said increases in average basket size and customer transaction volumes remained modest, indicating that consumers were still cautious in their spending. Selling-price inflation, while below consumer price inflation, had remained sticky.
Cashbuild reduced its footprint elsewhere in Africa, including in Zambia, and sold its two stores in Malawi, where currency weakness had weighed on operations. The disposal of the Malawi subsidiary resulted in an approximate R35m loss.
The underperforming P&L Hardware business, acquired in 2016, has been the main source of store closures and conversions in recent years, Chetty said. Stores converted from P&L Hardware to smaller Cashbuild formats had traded more profitably.
Thorreson confirmed this, saying the group’s 19 smaller-format stores had started to become profitable, although it was still early days.
“Over the past 18 months or so, we have seen new formats, brands and lines acquired or launched to capture more of the market’s DIY spend and regrow the store footprint into locations and categories of higher demand,” Chetty said.
The year’s results were assisted by the acquisition of Amper Alles, effective 1 December 2025. Cashbuild acquired a 60% controlling interest in the business, which operates three hardware and building-material stores.
The group said its operating-margin performance was affected by cost increases, despite disciplined cost management.
“The group will continue to expand and invest in its store footprint, and remain focused on affordability, accessibility and relevance,” chief executive Werner de Jager said.
Cash and other short-term funds rose by 4.3% to R2.03bn, while stock levels, including stock for new stores, increased by 6.8%.
A final dividend of 233 cents per share brought the total dividend for the year to 626 cents per share, unchanged from the previous year.
edward.west@nationalmg.co.za
THE NATIONAL