Cashbuild share price drops despite fourth quarter revenue growth

The share price of Cashbuild, the JSE-listed building materials and related products retail group, fell by 2.25% on Friday after it announced a 4% increase in revenue for the fourth quarter ending June 30.

In an operational update, the group noted that revenue growth was 3% when compared with the 304 stores that were in existence before July 2023. Revenue from 14 new stores opened by July 2025 contributed 1% to the growth.

The share price closed at R139 on Friday, which is approximately 17.8% lower than at the same time last year.

For the financial year, revenue for the group increased by 5%. Transactions through the tills during the fourth quarter rose by 6% compared to the same period last year, with existing stores contributing a 5% increase and new stores accounting for a 1% rise.

Selling inflation was recorded at 1.7% at the end of June 2025 compared to June 2024. The group’s South African stores accounted for 82% of total sales.

During the fourth quarter, three new stores were opened, and a total of eight were opened over the full year. Four stores were closed in the fourth quarter, bringing the total closures for the year to 12: 11 P&L Hardware stores and one Cashbuild store.

Additionally, the group refurbished 10 stores and upgraded 26 stores over the year, resulting in a total of 318 stores trading at the year-end.

In April, Cashbuild announced plans to acquire 60% of Allbuildco Holdings for R93 million, with the acquisition to be funded through cash reserves and existing overdraft facilities. “Cashbuild believes that Allbuildco will provide the growth platform to target a customer base not previously serviced by Cashbuild,” directors stated at the time.

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