DURBAN - ITALTILE’S share price leapt by more than 6 percent on the JSE yesterday after the group reported that it expected its half-year earnings to increase by at least 20 percent for the six months to end December.
The share closed 4.15 percent higher at R14.81.
The manufacturer, franchisor and retailer of tiles, bathroomware and other related home-finishing products said it expected its earnings per share (Eps) and headline earnings per share (Heps) to be higher than the 55.3 cents a share reported last year. As a result, Italtile said in a trading update that it expected both Eps and Heps to be in excess of 66.4c for the six months to end December.
However, Italtile also warned that the trading environment remained unpredictable in the context of the Covid-19 pandemic, inhibiting accurate guidance in terms of performance for the balance of the reporting period to the end of December.
“Accordingly, the board has resolved that a further announcement will be made in due course once there is greater clarity regarding the anticipated range of improvement in earnings per shareEps and headline earnings per shareHeps for the six months to end December,” the group said.
Italtile also released its sales update performance for the period from July 1 to November 30, in which it achieved double-digit growth across all of the group’s operations.
Italtile has retail brands, supply chain and manufacturing businesses.
Its total retail store sales increased by 16.4 percent, with like-for-like sales up by 14.9 percent.
The group’s retail sales include those reported by brands such as CTM, Italtile Retail, TopT and U-Light and manufacturing sales include those reported by Ceramic Industries and Ezee Tile Adhesive Manufacturers.
Its manufacturing sales increased by 16 percent compared to last year.
Italtile attributed the improved sales performance to a number of factors, including the group’s
local integrated supply chain that ensured consistent availability of a wide product range, the current work-from-home trend, precipitated by the Covid-19 pandemic, which boosted demand for home improvement products as well as lower interest rates and payment holidays that had supported homeowners’ spend on their primary asset – their homes.
“In addition, with restrictions on travel and leisure activities, some funds previously allocated to transport and recreational pastimes were reallocated to home improvements, and management’s continued focus on improving the customer shopping experience, including implementing rigorous risk mitigating measures to ensure a safe operating environment for customers and staff,” the group said.
BUSINESS REPORT