Cashbuild (CSB) H2 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year to R11.2bn for the 53 weeks ended 30 June 2024, with operating profit down 19% to R189m and headline earnings per share declining 22% to 947 cents.

• Net asset value per share decreased 5% to R76.67, and dividend per share fell 23% to 561 cents.

• Transaction growth for the six weeks post year-end was 3% higher than the prior year, with sales in the first six weeks of FY2025 up 5%.

Financial highlights

• Gross profit margin declined to 24.7% from 25.4% year-over-year.

• Operating expenses increased 4% to R2.58bn, including R137m in intangible asset impairments.

• Cash resources dropped 37% to R999m, and shareholders' equity decreased 6% to R1.83bn.

• Working capital outflow was R515m, mainly due to a 53rd week creditors payment of R859m.

Outlook and guidance

• Improved market sentiment post-elections and anticipated interest rate cuts are expected to stimulate growth.

• Roll-out of small model stores and P&L Hardware conversions to Cashbuild are progressing positively.