Cashbuild navigates weak DIY demand with steady growth

One of Southern Africa’s largest retailers of building materials, Cashbuild, has reported a resilient financial performance for the six months ended 28 December 2025.

Despite a “persistently challenging” macroeconomic backdrop and continued consumer caution in the South African DIY market, the group delivered an 18% increase in headline earnings per share, rising to 675 cents.

Cashbuild share price

Strategic pivots: Acquisition and consolidation

A key highlight of the reporting period was the group’s entry into a new growth platform through the acquisition of a 60% interest in Allbuildco Holdings for R96 million, effective 1 December 2025. This deal brings three Amper Alles brand stores in Gauteng and Limpopo into the fold, aligning with Cashbuild’s strategy to expand its footprint across all LSM bands and target previously unserviced customer segments.

While expanding domestically, Cashbuild simultaneously streamlined its regional portfolio by disposing of its Malawi operations on 28 December 2025. Management cited “onerous trading and regulatory conditions” as the primary driver for exiting the two-store market. The disposal resulted in a realised loss of R34.9 million, which primarily accounted for the 10% decrease in basic earnings per share.

Read: Cashbuild revenue up 3% to R11.5bn

Operational resilience amid financial pressure

Group revenue increased 3% to R6.3 billion, supported by a 4% growth in transaction volumes. This growth was achieved even as selling price inflation eased significantly to 0.8%, down from 1.5% in the prior comparative period. Operating profit, when excluding the loss from the Malawi disposal, grew by a healthy 10%.

Cashbuild successfully hit its internal target for gross profit margin, which settled at 25%. The group continues to aggressively manage its physical footprint, opening four new stores and refurbishing eight others during the half-year. Controlled expansion remains a priority, with the rollout of Cashbuild Small Model Stores (SMS) and the Cashbuild Xtra formats remaining on track.

Stronger cash position and shareholder returns

The group’s balance sheet remains robust, with cash and short-term funds increasing by 8% to R2.1 billion. Reflecting this strong cash position and the jump in headline earnings, the board declared an interim dividend of 393 cents per share, up 21% from the 326 cents declared in December 2024.

CEO Werner de Jager expressed encouragement regarding the group’s trajectory: “We are encouraged by the group’s performance during the period, despite ongoing challenges. Revenue for the first seven weeks after period-end grew by 8% compared to the same time last year, reflecting sustained momentum. We remain cautiously optimistic about the remainder of 2026 as we continue to navigate a dynamic and challenging DIY operating environment.”

Read: Cashbuild sees uptick in revenue despite ongoing pressure on retailers