Cashbuild Ltd. reported a 24% decline in profit after tax to ZAR 173 million for the 52 weeks ended June 28, 2026, compared with the prior year, despite a 6% rise in revenue to ZAR 12.1 billion.
Normalized profit after tax increased 5% to ZAR 196 million, while reported operating profit rose 9% to ZAR 292 million. Gross profit grew 8% to ZAR 3.06 billion, with gross margin improving to 25.3% from 24.8% a year earlier. Operating expenses increased 7% to ZAR 2.76 billion, representing 22.8% of revenue.
Earnings per share fell 25% to 786 cents, while headline earnings per share declined 8% to 960 cents. The company maintained its dividend at 626 cents per share, marking its 26th consecutive year of payouts. Cash and short-term funds totaled just over ZAR 2 billion, with inventories at ZAR 2.04 billion.
Chief Executive Werner de Jager cited geopolitical tensions and external pressures as weighing on consumer spending, though he noted the company’s ambition to gradually restore operating margins to around 5% over the next three years. Chief Financial Officer Hanré Bester highlighted an 8% increase in gross profit and a 0.5 percentage point improvement in gross margin.
Cashbuild’s South African operations contributed ZAR 245 million in normalized operating profit, up 2%, while the Rest of South Africa segment, including the recently acquired Amper Alles, posted a combined normalized operating profit of ZAR 10 million. Revenue in this segment declined 2% due to store closures, though gross profit rose 5%. Amper Alles contributed ZAR 194 million in revenue over the seven months it was included in results. The Rest of Africa segment underperformed, with sales down 4.6%, primarily due to liquidity challenges in Botswana.
The company completed 36 store projects during the year and has more than 40 stores approved for opening over the next three years. Total stores now stand at 317, with 16.5 million transactions recorded, up 4.8% year-on-year. Average basket size increased to ZAR 734, while selling price inflation averaged 1.1% for the 12-month period.
Cashbuild’s stock fell 3.59% to ZAR 10,474 following the earnings update, placing it near the bottom of its 52-week range of ZAR 10,079 to ZAR 18,299.
