|
Sales Update and Voluntary Trading Statement for the Year ended 30 June 2025
ITALTILE LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1955/000558/06)
Share code: ITE ISIN: ZAE000099123
("Italtile" or "the Group")
SALES UPDATE AND VOLUNTARY TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2025
SALES UPDATE
Trading Environment
In the year ended 30 June 2025 ("Review Period") intense competition, over-capacity and subdued
demand exerted pressure on tile manufacturers. The South African economy remained muted with
almost no GDP growth resulting in depressed consumer confidence and low spend in the building and
construction sector. Consumers remain price-conscious and constrained by tight budgets while
searching for trusted quality and good value.
Group performance
Italtile's encouraging Group performance in the first half of the financial year, particularly in Q2, was
attributed to positive sentiment and the injection of cash from the two-pot pension funds, both of
which stalled in Q3. The second half was more subdued and overall and the Group's system-wide
turnover decreased.
Italtile's retail brands are CTM, Italtile Retail and TopT, each household names in their respective
market segments. The retail division's full-year results were 2% higher than the prior comparable year
and it maintained market share. Full-year like-on-like sales increased 1%, with average selling price
inflation of 0.2%.
Trading conditions in Ceramic's market continued to deteriorate mainly due to the excess
manufacturing capacity in the industry. This resulted in a 5% overall manufacturing division sales
decline despite Ezee Tile's 4% growth in sales. Combined average manufacturing selling price deflation
was 1.6% for the period.
In the integrated supply chain, our import businesses, International Tap Distributors, Cedar Point and
Distribution Centre, collectively reported a decrease in sales value of 3%, with average selling price
deflation of 0.9%.
The Group's consolidated gross margin remained flat in line with our efforts to support affordability
for customers and compete for market share in the context of subdued demand and increased
competition.
The trading environment is expected to remain challenging in the short to medium term as intense
competition persists, due to the imbalance between excess supply and weak demand. We expect
continued headwinds to subdue growth, margins and profitability in the year ahead. We believe that
a rigid focus on the controllable aspects of our business will position us to capitalise on opportunities
when the trading environment improves.
VOLUNTARY TRADING STATEMENT
The Group is currently finalising its results for the Review Period.
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, shareholders are advised that
earnings per share ("EPS") and headline earnings per share ("HEPS") for the Review Period are
expected to be in the range outlined below:
Year ended 30 June 2025 Year ended 30 June 2024 Percentage increase
(cents) (cents) (%)
EPS 122.2 – 130.0 122.1 0.1 – 6.4
HEPS 123.1 – 129.4 123.0 0.1 – 5.2
PUBLICATION OF RESULTS
The Group's results for the Review Period are expected to be published on SENS on or about 25 August
2025.
The above information has not been reviewed and reported on by the Group´s external auditors.
Johannesburg
11 August 2025
Sponsor
Merchantec Capital
Date: 11-08-2025 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|
