Italtile Limited (ITE) H2 2025 earnings summary

Executive summary

• System-wide turnover decreased by 2% to R11.3 billion year-over-year, with trading profit stable at R2.1 billion despite challenging macroeconomic conditions, deflationary pricing, and weak demand.

• Retail sales grew 1%, while manufacturing sales declined 5% due to excess capacity and increased competition; Ezee Tile improved margins and profit by 2%.

• Cash reserves increased 18% to R2.2 billion, and total dividends (including special) rose 17% to 148.0 cents per share.

• The Group maintained a Level 2 B-BBEE rating and continued significant investment in human capital, sustainability, and transformation initiatives.

Financial highlights

• System-wide turnover: R11.3 billion, down 2% year-over-year.

• Trading profit: R2.1 billion, flat year-over-year.

• Earnings per share: 125.6 cents, up 3%; headline earnings per share: 125.1 cents, up 2%.

• Net asset value per share: 705.0 cents.

• Cash and cash equivalents: R2.2 billion, up 18%.

• Total dividend per share: 148.0 cents, up 17%.

• Capital expenditure: R234 million, focused on maintenance and selective upgrades.

Outlook and guidance

• Market conditions expected to remain challenging with continued margin pressure and subdued demand.

• Focus areas include operational efficiency, cost containment, leadership development, and product innovation.

• Capex for the next year forecast at R300 million, mainly for maintenance and energy security projects.

• Organic growth to be driven by brand strength in South Africa and East Africa, with ongoing review of asset base for potential disposals.