Italtile Limited (ITE) H1 2025 earnings summary

Executive summary

• System-wide turnover declined 1% to R6.08bn for the six months ended 31 Dec 2024, with trading profit up 3% to R1.18bn and EPS up 4.5% to 70.6c compared to the same period last year.

• Retail division saw improved sales and profits, especially in TopT and CTM, while manufacturing faced margin pressure but improved operationally in Q2.

• Cash balance increased 9% to R1.6bn, and an interim dividend of 28.0c per share was declared.

• The group operates 211 stores, including 7 webstores, and continues to invest in omnichannel and supply chain efficiencies.

Financial highlights

• System-wide turnover: R6.08bn (down 1% YoY); trading profit: R1.18bn (up 3% YoY); EPS: 70.6c (up 4.5% YoY); HEPS: 70.1c (up 4.3% YoY).

• Net cash: R1.6bn (up 9% YoY); net asset value per share: 678.1c (down from 684.4c YoY).

• Ordinary dividend per share: 28.0c (up from 27.0c YoY).

• Retail turnover grew 4% to R2.84bn; like-for-like system-wide store revenue up 3%.

• Gross margin flat at 41%; like-for-like operating costs down 5%.

Outlook and guidance

• Margins expected to remain under pressure due to competition and subdued demand; cost leadership and product mix optimization are key focuses.

• Retail brands aim to grow market share, with TopT planning three new stores in H2 and continued investment in omnichannel and customer experience.

• Manufacturing to focus on cost reduction, capacity utilization, and new product development; energy supply alternatives remain a priority.

• Consumer confidence improvements are seen as tenuous; further interest rate cuts and lower inflation could support discretionary spend.