Building materials retailer Cashbuild says it lost an estimated R621 million due to the impact of store closures during level 5 of the nationwide lockdown.
Cashbuild owns 318 stores, including a DIY store and 61 P&L Hardware stores, which together with its support office had to close during the strict lockdown from the end of March until the middle of April. During this period the sale of building materials was not classified as an essential service. The group's stores in Swaziland, Malawi and Zambia could continue trading.
On Tuesday in its annual results for the year ended 28 June 2020, Cashbuild said its revenue and gross profit for year decreased by 7%. Cashbuild’s headline earnings per share decreased by 40%.
However, the retailers’ revenue for the six weeks after 28 June increased by 22% compared to the six weeks after year end in 2019.
The group declared a final dividend of 272 cents per ordinary share, down from 420 cents in June 2019.
"Management believe trading conditions will remain extremely challenging due to the weakness of the national economy impacting negatively on customers’ disposable income," it said.