JSE-listed building materials retailer Cashbuild has reported a 1% year-on-year increase in headline earnings of R120-million for the six months ended December 29, 2024, while its net asset value per share increased by 2% year-on-year to R79.11.

Revenue increase by 5% year-on-year to R6.1-billion.

Selling price inflation stood at 1.5% at the end of December last year, compared with December 2023.

Cashbuild’s gross profit remained at similar levels to the prior comparable period, while the gross profit margin percentage declined from 24.7% to 24.3%.

Basic earnings per share increased by more than 100% owing to an impairment in the prior comparable period, while headline earnings per share increased by 4% year-on-year.

Operating expenses decreased by 5%, with existing stores showing a 6% reduction, while new stores contributed 1%. Excluding the prior period P&L Hardware goodwill and trademark impairment losses of R136.8-million, operating expenses increased by 5%. Operating profit, also excluding the prior period impairment losses, declined by 7%.

The effective tax rate decreased from 85.8% to 27.1%, primarily owing to the recognition of the P&L Hardware goodwill impairment loss in the prior period.

Cash and cash equivalents rose by 20% to R1.9-billion. Stock levels, including at new stores, decreased by 1%, with stockholding at 88 days at the end of the period, compared with 90 days in December 2023 and June 2024.

During the reporting period, Cashbuild opened three new stores, closed seven underperforming stores, refurbished 14 stores and relocated one store.

The company said it would continue its store expansion, relocation and refurbishment strategy in a controlled manner through its feasibility process.

Further, the opening of new Cashbuild small model stores remains on track.

For the seven weeks following the half-year period, revenue increased by 6% compared with the corresponding period of the previous year. Cashbuild management anticipates continued challenging trading conditions.

Following the announcement of these results, Cashbuild’s board declared an interim dividend of R3.26 a share, compared with R3.25 a share in December 2023, payable to all shareholders from income reserves.