Cashbuild (CSB) 1H24 – Results Snapshot

Diluted HEPS 550.2cps (-21.8% y-y).
Revenue up +2.5% y-y to R5.8bn. Revenue from existing 312 stores increased by 1% y-y, and the nine new stores contributed 1% y-y growth.
GPM down 60bps to 24.7%.
Expense growth +17.8% y-y with expense to sales ratio up from 20.9% to 24.0%.
OPM declined to 0.9% (1H23: 4.6%).
Dividend of 325.0cps (1H23: 400cps).
Cash and cash equivalents decreased to R1 590m due to higher stock levels in the current period and the repurchase of shares in the second half of the prior year. Stock levels have increased by 10%.
Effective tax rate of 85.8% for the period is a result of the P&L Hardware Goodwill impairment.
During the period, CSB opened three new stores (two Cashbuild, one P&L Hardware) and refurbished three Cashbuild stores.
Selling price inflation was 3.2% at the end of the period.