Cashbuild Ltd. posted a 24% year-on-year decline in profit after tax to ZAR 173 million for the 52 weeks ended June 28, 2026, as rising costs offset revenue growth. Normalized profit after tax, excluding one-off items, rose 5% to ZAR 196 million.
Revenue increased 6% to ZAR 12.1 billion, with second-half sales up 8%. Gross profit advanced 8% to ZAR 3.06 billion, lifting the gross margin to 25.3% from 24.8% a year earlier. The fourth-quarter margin reached 25.6%. Operating profit totaled ZAR 292 million, while normalized operating profit rose 9% to ZAR 311 million, keeping the operating margin at 2.6%.
Operating expenses climbed 7% to ZAR 2.76 billion, with comparable-store costs up 5.4%. IT expenses surged 18% due to the migration to SAP S/4HANA. The company’s net financing costs rose by ZAR 14 million to ZAR 47 million.
Basic earnings per share fell 25% to 786 cents, while headline earnings per share declined 8% to 960 cents. The board maintained the dividend at 626 cents per share, unchanged from the prior year, supported by a 1.5x dividend cover. Cashbuild has paid dividends for 26 consecutive years.
Cashbuild’s Malawi subsidiary was sold at the end of December 2025, resulting in a ZAR 35 million loss on disposal. The group’s Amper Alles acquisition, completed December 1, 2025, contributed ZAR 194 million in revenue over seven months. Capital expenditure totaled ZAR 288 million, including ZAR 192 million in South Africa.
The retailer operates 317 stores, having completed 36 projects in the year and approved over 40 new store openings for the next three years. Customer transactions rose 4.8% to 16.5 million, with average basket size increasing to ZAR 734.
Cashbuild’s shares fell 3.6% to $104.74, near the bottom of its 52-week range between $100.79 and $182.99. The company’s net asset value per share declined 3% to ZAR 77.84.
Management guided toward a gradual improvement in operating margins toward 5% over the next three years, citing ongoing geopolitical and economic pressures as headwinds to consumer spending.
