Record results for Cashbuild, notwithstanding tough operating environment
Building materials retailer Cashbuild on Tuesday reported record results for the year ended June 30, with operating profit up 33% to R612-million and an operating profit margin of 7.1%, compared with 6% in the prior year.
Revenue was also up 13% to R8.7-billion.
However, Cashbuild also reported that market conditions remained challenging, which was met with selling price inflation of 3%. It added that it had already seen trading conditions come under pressure in the first six weeks of trading in the 2017 financial year and was expecting this trend to continue over the short-to-medium term.
CEO Werner de Jager said in a statement that cost control was one of Cashbuild’s key focus areas. “We managed to increase our operating expenses by only 9% from R1.38-billion to R1.5-billion, including new store costs,” he noted, adding that operational expenses for the year remained well controlled.
Basic earnings a share increased by 42% from R15.47 to R21.97, while headline earnings a share increased by 43% from R15.28 to R21.68.
“Our financial position remains strong and we achieved an increase in net asset value per share of 14% from R52.58 to R59.81. We maintained our net cash position, being R749-million at year-end, despite having acquired P&L Hardware,” he added.
The board declared a dividend of R10.01, an increase of 41%.
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