Cashbuild revenue falls 12% as home improvement boom wanes
Cashbuild's first half headline earnings per share slumped 27 per cent to R11.30 as revenues over the period dipped and costs rose. To review the numbers and tell us whether the DIY boom witnessed during the lockdowns is over, CNBC Africa is joined by Werner De Jager, CEO at Cashbuild.
Wed, 02 Mar 2022 11:07:36 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The impact of inflation and increased costs on Cashbuild's financial performance in the first half of the year.
- The effects of the looting incidents in July on sales and operations.
- The outlook for Cashbuild in navigating competition, managing stock inventory, and exploring opportunities in government infrastructure projects.
Cashbuild's CEO, Werner De Jager, recently discussed the company's financial performance in the first half of the year with a 27% decline in headline earnings per share. The revenue dipped as costs rose, impacted by various factors including the increase in fuel prices and inflation in selling prices. De Jager highlighted that the inflationary market poses challenges in terms of affordability for consumers. Additionally, the looting incidents in July had a negative impact on the company's results, causing a loss of sales and affecting operations. However, despite these challenges, Cashbuild has managed to maintain its gross margin. When asked about the impact of the DIY boom during the lockdowns, De Jager noted that while the extreme boom from the previous year may be over, the current trading levels remain strong. The company also addressed competition in the market, stating that they do not directly compete with certain brands and believe they have not lost market share. Stock inventory levels are being closely monitored, with the company benefitting from a lower reliance on imported products. Looking ahead, Cashbuild is optimistic about the potential opportunities in government infrastructure projects, with a focus on the employment generated and the positive spin-offs for the business. Despite the challenges faced, Cashbuild is navigating through the storm and strategizing for future growth in the home improvement industry.
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