CASHBUILD Group’s revenue fell 10 percent during the third quarter of its 2022 financial year over the same period in 2021 due to lower transactions through the tills and the impact at 36 stores of looting during July 2021, an operation update said yesterday.
The share price fell 2.3 percent yesterday to R277. The figures appear to confirm what some analysts have already noted – that the boom in the demand for home building and construction materials through the 2020 and 2021 Covid-19-related lockdowns has come to an end.
When revenue was compared for the 305 stores in existence prior to July 2020, revenue decreased by 11 percent, while 12 new stores contributed 1 percent growth.
Excluding the effect of the 36 looted stores, third quarter revenue was down 7 percent on the comparative period. This, combined with the results reported, excluding looted stores, equated to a decrease in revenue for the year to date of 5 percent.
Transactions through the tills during the third quarter fell by 17 percent to that of the comparative period, with existing stores decreasing by 19 percent and new stores contributing 2 percent growth.
Selling inflation was 8.1 percent at the end of March 2022 when compared to March 2021.
P&L Hardware’s half-year revenue improved due to aggressive pricing during the third quarter of the current financial year.
During the third quarter the group opened two new Cashbuild stores, refurbished five Cashbuild stores, relocated one Cashbuild and closed four stores (three looted Cashbuild stores and one P&L Hardware store).
There were 317 stores at the end of the third quarter – five looted stores were currently being rebuilt for reopening.
BUSINESS REPORT