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Italtile - sales update and trading statement
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.
Voluntary trading statement
The Group is currently finalising its results for the Review Period.
Shareholders were 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:
Earnings Per Share (EPS):
- Year ended 30 June 2025: 122.2 - 130.0 cents
- Year ended 30 June 2024: 122.1 cents
- Percentage increase: 0.1% - 6.4%
Headline Earnings Per Share (HEPS):
- Year ended 30 June 2025: 123.1 - 129.4 cents
- Year ended 30 June 2024: 123.0 cents
- Percentage increase: 0.1% - 5.2%
The Group's results for the Review Period are expected to be published on SENS on or about 25 August 2025.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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