Cashbuild says retailers are still under pressure despite rate cuts.
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GUEST – Werner de Jager, CEO of Cashbuild
Cashbuild, one of southern Africa’s largest retailers of quality building materials and associated products, selling direct to a predominantly cash-paying customer base through 318 stores, reported its results for the six months ended 29 December 2024 (“1H2025”). The improved results were delivered despite macroeconomic and trading conditions still being challenging in the period under review.
The benefits of the Two-Pot System, interest rate cuts and moderated cost inflation did not translate into the expected growth for the building retail sector. Group revenue for the period increased by 5% to R6.1 billion from R5.8 billion (December 2023). Revenue for the 309 stores opened prior to July 2023, increased by 4% and our 9 new stores contributed 1% to total revenue.
Selling price inflation was 1.5% at the end of December 2024 when compared to December 2023. Gross profit remained at similar levels while gross profit margin percentage decreased from 24.7% (December 2023) to 24.3%.
Cashbuild, one of southern Africa’s largest retailers of quality building materials and associated products, selling direct to a predominantly cash-paying customer base through 318 stores, reported its results for the six months ended 29 December 2024 (“1H2025”). The improved results were delivered despite macroeconomic and trading conditions still being challenging in the period under review.
The benefits of the Two-Pot System, interest rate cuts and moderated cost inflation did not translate into the expected growth for the building retail sector. Group revenue for the period increased by 5% to R6.1 billion from R5.8 billion (December 2023). Revenue for the 309 stores opened prior to July 2023, increased by 4% and our 9 new stores contributed 1% to total revenue.
Selling price inflation was 1.5% at the end of December 2024 when compared to December 2023. Gross profit remained at similar levels while gross profit margin percentage decreased from 24.7% (December 2023) to 24.3%.