Italtile, the tile, sanitaryware, decor and design accessories importer, retailer and wholesaling group, said headline earnings per share (Heps) were expected to decrease by between 13.1% and 17% in the six months to December 31, 2023.
Heps was expected to be between 68.8 – 65.8 cents, compared with 79.2 at the end of the same period a year before.
Earnings per share was also expected to fall between 13% and 16.8%, to between 69.2 – 66.1 cents from 79.5 cents at the same time a year before.
On the X social media platform, Smalltalkdaily Research (@smalltalkdaily) said: “The residential & home renovation market has been out of favour for nearly 2-years; we all know the reasons why… Sector just needs a glimmer of hope for a tiny green shoot. That may only come post the election (but then that depends which way it goes & what cobbled together party wins & its policies & market reaction) alongside lower interest rates eventually coming.”
“Little sector excitement for the coming quarter, so I see no reason to get that enthused quite yet…(Italtile) remains a quality business,” he said.
Italtile’s shares traded 1.7% lower at R11.50 yesterday afternoon on the JSE, while a year ago on the same day, it was trading at R14.05.
In December, the group said in an update that consumer confidence in the construction and building sector was subdued. Homeowners' investment sentiment and spend continued to be constrained by adverse social and economic conditions and higher living costs, interest rates and inflation, which drove up building costs and impacted on affordability of products, installations and new build projects.
Generally softer retail demand and over-stocked position of many wholesalers also impacted negatively on sales in the manufacturing businesses. Competition and margin pressure intensified with opportunistic importers sacrificing margin to gain market share.
The group's interim results are expected to be released on or about February 19, 2024.