A Cashbuild outlet in Vosloorus in Ekurhuleni. Positive investor sentiment around Cashbuild's stronger second half outlook and a relatively high interim dividend payout appared to be reflected tin the 3.8% rise in the share price on the JSE on Wednesday morning to R150.54.
Image: Simphiwe Mbokazi/Independent Newspapers
Cashbuild, the southern African building materials retailer that services mainly cash‑paying customers, increased its interim dividend by 21% in a tough trading environment where revenue was up 3% to R6,3billion.
And the group is cautiously optimistic for a better second half, as revenue in the first seven weeks of trading since the end of December 28 saw revenue up by 8% compared to the same time last year, said chief operating officer Shane Thoresson in an interview.
The stronger outlook and solid interim results were reflected in the share price that notched up a relatively big 3,8% on the JSE on Wednesday morning to R150,54. Last year, the share price was trading at R171.
Revenue for the 307 stores opened prior to July 2024 increased by 1%, and the 15 new stores contributed 2% growth. Selling price inflation was 0,8% at the end of December 2025 when compared to the 1,5% recorded at the end of December 2024.
Gross profit increased by a satisfactory 7%, with the gross profit margin percentage at 25%, at the company’s targeted percentage.
“We are encouraged by the performance. We plan to continue driving the footprint and topnline growth," said Thoresson.
Gross profit increased by 7%, with the gross profit margin percentage at 25%, at the company’s target. Operating profit growth would have been a strong 10% were it not for the disposal of the group’s interest in the Malawi operations, which comprise two stores, given the onerous trading and regulatory conditions, said Thoresson.
The company, which has 322 stores, achieved these results against a persistently challenging macroeconomic and trading environment throughout the period.
“The South African DIY and home‑improvement market experienced continued consumer caution amid slow economic growth and rising financial pressures, although easing inflation offered some support to household spending,” he said.
During the period, 4 new stores were opened, 8 stores refurbished, 1 was relocated, 8 were converted, and 1 underperforming store was closed down. Five new stores were planned to open in the second half, and possibly 10-15 stores in the next financial year, he said.
“Cashbuild will continue its store expansion, relocation, and refurbishment strategy in a controlled manner, through its feasibility process. The opening of new Cashbuild Small Model Stores (SMS), Cabifit, and Cashbuild Xtra remain on track,” said Thoresson. The additional product lines in the Cashbuild Xtra stores were proving a success, he said.
Effective December 1, 2025, Cashbuild acquired a 60% interest in Allbuildco Holdings for R96 million.
Allbuildco owns three hardware and building material stores trading under the Amper Alles brand in Silver Lakes and Rayton (both in Gauteng), and Groblersdal in Limpopo.
Thoresson said the acquisition was in line with their strategy to become a market leader in the hardware and building material sector in South Africa across all LSM bands. Cashbuild believes Allbuildco could provide the growth platform to target a customer base not previously serviced by Cashbuild.
Operating expenses increased by 6% - existing stores increased by 5% and new stores contributed 1%.
Headline earnings per share increased by 18% from 573 cents to 675 cents. An interim dividend per share of 393 cents was declared, up from 326 cents last year.
Visit:www.businessreport.co.za