Cashbuild still rebuilding as it counts the cost of 2021 unrest

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Cashbuild was negatively impacted by the July 2021 looting.
Cashbuild was negatively impacted by the July 2021 looting.
Cashbuild

Cashbuild has seen a 12% revenue decline following a six-month period impacted by the July unrest that took place in KwaZulu-Natal and Gauteng in 2021.

In its interim results for the six months ended December 2021, Cashbuild said its revenue had fallen to R5.8 billion from R6.6 billion in December 2020. The decline was 5% excluding looted stores.

The group said although its gross profit fell by 11%, from R1.7 billion in 2020 to R1.5 billion in 2021, its gross profit margin grew from 26.4% to 26.6%.

Cashbuild closed 36 of its stores across the group due to the looting.

"As a result of the looting, various categories of property, plant and equipment (R20 million) and inventory (R136 million) were written off. Cashbuild submitted insurance claims of R143 million for inventory, R71 million for property, plant and equipment, and R65 million for business interruption to its respective insurers.

"To date, R214 million has been received relating to stock and asset claims," said Cashbuild in a statement on Wednesday.

Excluding the looted stores, the building materials and associated products retailer’s operating profit fell by 7% from R497 million to R465 million in the six months, compared to 2020.

During the six months, the group managed to open two new Cashbuild stores and it refurbished five, while it relocated one store. It closed three looted Cashbuild stores and one P&L Hardware store after their lease agreements expired.

The retailer has since reopened 25 Cashbuild and three P&L Hardware stores that were looted.

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