Johannesburg - Ceramics company Italtile is continuing to expand its presence as the market becomes increasingly competitive.
In the year to June, the company reported income of R5.96 billion, which was a gain on the R.2 billion reported a year ago. It says earnings per share came in at 87.8c, up from 75.9c, while its trading profit was R1 billion, better than the R905 million for last year. Its dividend increased by 4c a share to 29c.
Headline earnings per share - a key indicator of performance - increased 21 percent to 86.9c.
The company, which is a franchisor and retailer of local and imported tiles, sanitaryware, bathware and laminated flooring, says all its brands reported improved results.
Its brands include Italtile Retail, CTM and TopT, which are represented by a total network of 146 stores in Southern and East Africa.
During the period, it continued to expand its footprint and opened 20 new stores: 15 TopTs, three CTMs and two Italtile Retail stores, and launched a CTM web store in Kenya.
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These stores’ contribution will only be reflected in the next period.
In its commentary to shareholders on its results, it notes that although the renovations market grew during the reporting period, the new-build segment remained sluggish. This it says is illustrated by the negligible increase in the number of building plans passed.
“This statistic reflects the deterioration in consumers’ investment sentiment based on uncertainty in the economy and socio-political environment, with homeowners more likely to upgrade existing properties than commit to more substantial new-build spend.”
In addition, it says the sector became more competitive as pricing and promotions became more aggressive as traders sought to retain market share. “Currency volatility and cash flow constraints led to further rationalisation of less established operators”
Capital expenditure for the period was R375 million, which mostly went on acquisitions and upgrades of properties.
IOL
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