Cashbuild (CSB) H1 2025 earnings summary

Executive summary

• Revenue for the half-year reached R6.1 billion, up 5% year-over-year, driven by aggressive pricing, increased customer transactions, and new store formats.

• Headline earnings per share increased 4% to 573 cents, and net asset value per share rose 2% to R79.11.

• Operating profit was R174 million, with prior period impairments impacting comparability; normalized operating profit decreased 7%.

• Store count decreased to 318 due to rationalization and conversion of P&L Hardware stores, with three new stores opened, seven closed, and multiple refits and conversions.

• Cash and cash equivalents grew 20% to R1.91 billion, supporting a strong balance sheet.

Financial highlights

• Gross profit increased to R1.48 billion, with a gross margin of 24.3% (down from 24.7% prior year).

• Operating expenses (excluding impairments) rose 5%, mainly from people and property costs; overall operating expenses decreased 5% due to lower impairments.

• Dividend per share maintained at 326 cents, with a cover policy of 1.5x.

• Cash resources at R1.91 billion, with inventory at just over R2 billion and 88 inventory days.

• Cash flow from operations before working capital was R398 million, and total cash generated from operations was R1,231 million.

Outlook and guidance

• First seven weeks of the new period show 6% sales growth year-over-year.

• Market sentiment is more optimistic, with continued focus on store investment, efficiency improvements, and controlled expansion.

• Rollout of new store formats and continued rationalization of P&L Hardware stores planned.

• Zakhelikhaya project gaining momentum.

• Management expects trading conditions to remain challenging.