Johannesburg - Italtile Ltd. climbed the most in a year as the South African retailer of ceramic tiles and bathroom fixtures said it would pay a special dividend after full-year profit advanced.
The stock rallied 8.2 percent, the steepest gain since August 2012, to 6.50 rand as of 1:40 p.m. in Johannesburg.
More than 900,000 shares were traded, or 2.8 times the three-month daily average, data compiled by Bloomberg show.
The benchmark FTSE/JSE Africa All Shares Index added 0.5 percent.
Earnings per share excluding one-time items in the year through June rose 16 percent to 47.4 cents per share, Italtile said today.
The Johannesburg-based company plans to pay a special dividend of 50 cents a share given its “highly cash generative nature,” it said.
That’s in addition to an ordinary dividend of 16 cents, a 14 percent increase year-on-year.
“The company has managed to improve profit as it’s refocused the business, taking market share,” David Shapiro, a director at Johannesburg-based Sasfin Securities, said by phone.
The company’s TopT business, which caters to lower-income earners, posted record results triggered by “aggressive” pricing and new products, Italtile said.
The stock has gained 3.2 percent so far this year.
That compares with a drop of 15 percent for Cashbuild Ltd., a South African building-materials wholesaler and retailer. - Bloomberg News