Cashbuild : Interim results and dividend declaration for the six months ended 26 December 2021

REVENUE (Rm)

7 000
6 500				695
6 000				6
				5 889
5 500	5 393	5 563	5 510
5 000
4 500	2017	2018	2019	2020	2021

NAV PER SHARE (cents)

9 500				9 640
8 500				175
		8388		9
7 500		167
	8
6 500	7 278
5 500	2017	2018	2019	2020	2021

OPERATING PROFIT (Rm)

600
500				576
				492
400
300	322	285	299
200
2017	2018	2019	2020	2021

HEADLINE EARNINGS (Rm)

390
330				350
270					256
210	249	221	173
150	2017	2018	2019	2020	2021

INTERIM RESULTS AND DIVIDEND DECLARATION

for the six months ended 26 December 2021

COMPANY PROFILE

DECLARATION OF DIVIDEND

Cashbuild is southern Africa's largest retailer of quality

The board has declared an interim dividend (No. 58), of 587 cents

building materials and associated products, selling direct

(2020: 724 cents) per ordinary share out of income reserves to all

to a cash-paying customer base through our chain of

shareholders of Cashbuild. The dividend per share is calculated

stores (317 at the end of this reporting period, which

based on 24 989 811 (2020: 24 989 811) shares in issue at date of

includes 54 P&L Hardware stores). Cashbuild carries an

dividend declaration. Net local dividend amount is 469.6 cents per

in-depth quality product range tailored to the specific

share for shareholders liable to pay Dividends Tax and 587 cents

needs of the communities we serve. Our customers are

per share for shareholders exempt from paying Dividends Tax. Local

typically

home-builders

and

improvers,

contractors,

dividend tax is 20%.

farmers, traders, as well as all other customers requiring

Cashbuild's tax reference number is 9575168712.

quality building materials at the best value.

FINANCIAL HIGHLIGHTS

Date dividend declared:

Tuesday, 1 March 2022

Revenue for the period declined by 12%. Revenue for stores

Last day to trade "CUM" the dividend:

Tuesday, 22 March 2022

in existence prior to July 2020 (pre-existing stores - 305 stores)

Date to commence trading "EX" the dividend:

Wednesday, 23 March 2022

declined with 14% and our 12 new stores contributed 2%

Record date:

Friday, 25 March 2022

growth. Gross profit decreased by 11% with gross profit

Date of payment:

Monday, 28 March 2022

margin percentage increasing from 26.4% to 26.6% mainly

Share certificates may not be dematerialised or rematerialised

due to the store looting stock recovery claim net of write

off. Selling price inflation for December 2021 was 8.8%

between Wednesday, 23 March 2022 and Friday, 25 March 2022,

compared to December 2020. Operating expenses,

both dates inclusive.

including new stores, were well controlled considering

INDEPENDENT REVIEW BY THE AUDITOR

the revenue decline, reducing by 10% (existing stores 12%

These

summary

consolidated

interim

financial

statements

partially offset by a 2% increase in new stores) resulting in

were

derived from

the

reviewed

consolidated interim

financial

the operating profit decreasing by 14%. Basic earnings per

statements

for the

six

months ended 26

December

2021. The

share declined by 19% with headline earnings per share

independent auditor's review has been conducted in accordance

also declining by 27% from the prior period.

with International Standards on Review Engagements 2410, Review

Cash and cash equivalents 33% lower than the prior period

of Interim Financial Information Performed by the Independent

mainly as a result of the substantial final dividend paid and

Auditor, PricewaterhouseCoopers Inc., and their unmodified review

costs of looted stores not yet recovered from insurance.

report

is available

for

inspection

at the

Company's

registered

Stock

levels, including

new

stores

have

increased

office. Any

reference to future financial

performance

included

by 10% with stockholding at 79 days (December 2020:

in this announcement has not been reviewed or reported on by

68 days; June 2021: 74 days) at period end. Net asset

the Group's

external auditors. The auditor's review

report does

value

per

share

decreased by 5%,

from

9

640

cents

not necessarily report on all of the information contained in this

(December 2020) to 9 175 cents.

announcement/financial results. Shareholders are therefore advised

During the period, Cashbuild opened 2 new

that in order to obtain a full understanding of the nature of the

Cashbuild stores, refurbished 5 Cashbuild stores and

auditor's engagement they should obtain a copy of the auditor's

relocated 1 Cashbuild store. 3 looted Cashbuild stores

review report together with the accompanying financial statements

and 1 P&L Hardware store were closed at the expiration

from the registered office.

of their

lease

agreements.

25

Cashbuild

stores

Johannesburg

and 3 P&L Hardware stores that were looted have

since been reopened. Cashbuild will continue its store

Sponsor: Nedbank Corporate and Investment Banking, a division of

expansion, relocation and refurbishment strategy in a

Nedbank Limited

controlled

manner, applying

an even more rigorous

Approved by the board on 1 March 2022

process, due to the Covid-19 pandemic and associated

Released 2 March 2022

economic uncertainties.

PROSPECTS

This short-form announcement is the responsibility of the Board of directors of

Group revenue for the six weeks subsequent to period end

Cashbuild and is prepared based on the reviewed interim results being the full

announcement.Anyinvestmentdecisionshouldbebasedonthefullannouncement

is 10% lower than the comparative prior six weeks period.

available on Cashbuild's website www.cashbuild.co.za and on the JSE's website at

Management expects trading conditions to remain

https://senspdf.jse.co.za/documents/2022/jse/isse/CSB/ie2021.pdf.

uncertain due to the ongoing Covid-19 pandemic and its

The full announcement is also available at the Company's registered office for

economic impact. This information has not been reviewed

inspection, at no charge, during office hours. Copies of the full announcement

nor audited by the Company's auditor.

may be requested by contacting Elna Munro on telephone [phone].

Six months

ended

Six months ended

Year ended

26 December

27 December

R'million

2021

2020

% change

27 June 2021

Revenue

5 889

6 695

(12)

12 616

Operating profit

492

576

(14)

1 039

Earnings per share (cents)

1 294.8

1 594.7

(19)

2 935.7

Headline earnings per share (cents)

1 130.4

1 540.7

(27)

2 872.6

Dividend per share (cents)

587

724

(19)

2 935

CIVIL UNREST AND LOOTING EFFECTS

During the period, 36 (32 Cashbuild and 4 P&L Hardware) stores across the Group were impacted by the unrest and looting in July 2021. Stores were looted and damaged which led to the scrapping of various categories of property, plant and equipment (R20.4 million) and inventory (R136 million). Cashbuild has insurance cover for such events to minimise losses to the Group and 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.

The insurance recoveries expected have been recognised in cost of sales (R143 million) and other income (R71 million). Cashbuild expects that compensation for business interruption would be finalised after the full-year results of the Group have been determined. No receivable has been recognised for the business interruption due to not finalising the claim value which therefore is not virtually certain. The Group received interim payments for its asset claims of R132 million on 23 November 2021 and R82 million (VAT inclusive) after period end.

Quality building materials at the best value

www.cashbuild.co.za

(Incorporated in the Republic of South Africa) (Registration number: 1986/001503/06) Share code: CSB ISIN: ZAE000028320 ("Cashbuild" or "the Company")