Tough trading conditions mute Cashbuild’s revenue growth

9th May 2013 By: Chanel de Bruyn - Creamer Media Senior Deputy Editor Online

Building materials retailer Cashbuild reported marginal year-on-year revenue growth of 1% during the third quarter of its 2013 financial, as tough trading conditions continued.

Nine new stores opened by the company since July 2011, contributed 2% of the increase, while existing stores’ contribution decreased by 1%. This, together with the growth reported in the first half, equated to an increase in revenue year-to-date of 2%.

Transactions through the tills during the period under review fell by 2%, compared with the prior year's corresponding period. New stores contributed an increase of 3%, while existing stores’ contribution decreased by 5%. Total units sold for the third quarter remained at similar levels to that of the prior year, with existing stores decreasing by 2%.

Further, two new stores were opened during the quarter, bringing the number of stores trading at the end of the third quarter to 196 – 171 were located in South Africa.

Selling inflation was at 2% at the end of March, compared with March 2012, while gross profit percentage margins retracted from the levels reported at the half-year.