JSE-listed building materials and products retailer Cashbuild has reported a 5% year-on-year increase in revenue for the financial year ended June 29 to R11.5-billion, while its operating profit was up 28% year-on-year to R344-million and its headline earnings per share (HEPS) by 10% to R10.40 a share.

The group also issued a final dividend of R3 a share, bringing the total dividend for the year to R6.26 a share, which is 12% higher year-on-year.

The group’s results showed positive growth trends but, as a result of above inflationary cost increases, margins came under pressure, despite good cost controls, it says.

Gross profit, meanwhile, increased by 5% to R2.8-billion, up from R2.7-billion in the prior financial year, with the gross profit margin improving marginally to 24.8% from 24.7%. Basic earnings per share increased by 163% to R10.43 a share from R3.96 in the 2024 financial year.

Net asset value per share increased by 4% to R79.96.

Revenue from the 304 stores in existence prior to July 2023 increased by 4%, while the group's 14 new stores contributed 1%. Transactions through the tills increased by 4% and selling price inflation was 1.7% at the end of June.

Cashbuild had 318 stores at year-end, down from 322 stores in the preceding financial year. During the year under review, the company opened eight new stores, with seven being Cashbuild stores and one being a P&L Hardware store. It also refurbished 26 stores.

Twelve stores – 11 P&L Hardware stores and one Cashbuild store – were closed owing to underperformance during the year.

“Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, through its feasibility process. The opening of the group's small-model stores remains on track,” the company says.

The average basket size for the year under review declined by 1.1% to R729, down from R737 in the 2024 financial year. This decrease is primarily attributed to a shift in customer mix, with a higher proportion of retail shoppers compared to small-scale builders.

Total customer transactions grew by 5.8% on the prior financial year, slightly outpacing revenue growth, largely owing to the same shift in shopper profile.

“We remain cautiously optimistic for the 2026 financial year, despite the unrelenting challenges facing our core customer base. Consumer sentiment remains fragile, especially among lower-income households,” says Cashbuild CEO Werner de Jager.

Although some relief has come through social support measures and lower interest rates, the persistently high cost of living, including energy costs, have eroded disposable income and dampened spending confidence, he notes.

Further, revenue reported for the seven weeks subsequent to the 2025 financial year-end is 6% higher than the prior year’s comparable seven-week period, which is pleasing, he adds.