Building materials retailer Cashbuild has reported its biggest revenue increase in five years, while its profit more than doubled in the last six months of 2020.
The company, which acquired building materials and wholesaler The Building Company (TBC), from Pepkor last year, released its interim results on Tuesday, for the year ended 31 December 2020.
Its revenue had increased by 21%, to R6.7 billion from R5.5 billion in the same reporting period in 2019, moving it from the R5 billion mark it has stayed in since 2016. Its profit also increased, more than doubling to R364.2 million, from R172.8 million in 2019.
The Covid-19 pandemic has seen an increase in demand for DIY products as consumers do improvement projects at home. After its TBC acquisition, Cashbuild, continued with its expansion and opened three new stores, increasing its footprint to 317. However, the group’s P&L stores, which have not been performing well, did not open new stores with the group closing three of the brand’s outlets after their leases expired.
The group will continue with its expansion, relocation and refurbishment strategy, it said in its results, but the strategy would be controlled and put through a rigorous process as a result of the pandemic and economic uncertainty.
The group’s headline earnings per share increased 102% to 1 541 cents, from 762 cents in and it has declared an interim dividend of 724 cents per share, from 435 cents per share in 2019.
"The lockdown period allowed us time to refocus on our key business drivers, to prepare us for the uncertain times ahead. The favourable trading conditions combined with our diligent execution, allowed us to deliver these set of results. Management expects trading conditions to remain uncertain for the remainder of the financial year due to the ongoing Covid-19 pandemic and its economic impact," Cashbuild CEO Werner de Jager said in a statement.