CASHBIL: 26,900 +330 (+1.24%)
South Africa Cashbuild annual profit down 9 pct, shares fall
JOHANNESBURG, Aug 28 (Reuters) - South African building
materials retailer Cashbuild reported a 9 percent
decline in annual profit on Tuesday due to higher costs and weak
consumer demand, sending its shares tumbling more than 4
Headline earnings per share (EPS) -- the main profit gauge
in South Africa that strips out certain one-off items -- came in
at 1,867 cents in the year to the end of June versus 2,045 cents
in a year earlier.
Revenue rose 5 percent to 10.2 million rand ($696,800) but
the cost of revamping and opening news stores pushed costs by 9
percent, Cashbuild said in a statement.
The company added 42 stores in this financial year to its
Consumers in Africa's most advanced economy are spending
warily due to slow economic growth, high unemployment and rising
fuel costs that have pushed inflation to its highest in ten
The company said although it expects trading conditions to
remain "extremely challenging", it will "continue its store
expansion, relocation and refurbishment strategy in a controlled
manner, applying the same rigorous process as in the past."
Shares in the firm fell 4.15 percent to 300 rand by 0945
GMT, versus a 0.41 percent rise in the All-Share index.
($1 = 14.6363 rand)
(Reporting by Nomvelo Chalumbira
Editing by James Macharia)
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