Italtile Limited (ITE) H1 2026 earnings summary

Executive summary

• System-wide turnover was flat at R6.1 billion for the six months ended 31 December 2025 compared to the prior year, reflecting subdued demand and intense competition.

• Trading profit declined 14% to R1.02 billion, with EPS and HEPS both down 14% year-over-year.

• The group maintained a store network of 211 stores, including seven webstores, and continued to focus on operational efficiencies and customer experience.

• Leadership changes were announced, with a new CEO Designate appointed and succession plans in place.

Financial highlights

• Trading profit fell 14% to R1.02 billion from R1.18 billion in the prior period.

• EPS dropped to 60.9 cents (2024: 70.6 cents), and HEPS to 60.6 cents (2024: 70.1 cents).

• Net cash decreased 7% to R1.5 billion, and net asset value per share declined 6% to 637.4 cents.

• Ordinary dividend per share was 24.0 cents, down from 28.0 cents in 2024.

• Revenue from group-owned stores decreased 2% to R4.7 billion.

Outlook and guidance

• Management expects a similar performance in the second half of the financial year, excluding the impact of an ongoing enquiry in NCIA.

• Modest economic recovery is anticipated in South Africa, with GDP growth projected between 1.3% and 1.6% for 2026.

• Focus remains on market share growth, operational efficiencies, and leveraging digital channels.