Wrap Text
Unreviewed Interim Financial Statements and Cash Dividend Declaration for the six months ended 31 December 2025
ITALTILE LIMITED
Incorporated in the Republic of South Africa
Registration number: 1955/000558/06
Share code: ITE
ISIN: ZAE000099123
("Italtile" or "the Group")
CONDENSED UNREVIEWED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CASH DIVIDEND DECLARATION FOR
THE SIX MONTHS ENDED 31 DECEMBER 2025
HIGHLIGHTS
- System-wide turnover unchanged at R6,1 billion
2024: R6,1 billion
- Trading profit down 14% to R1,0 billion
2024: R1,2 billion
- Earnings per share down 14% to 60,9 cents
2024: 70,6 cents
- Headline earnings per share down 14% to 60,6 cents
2024: 70,1 cents
- Net cash down 7% to R1,5 billion
2024: R1,6 billion
- Net asset value per share down 6% to 637,4 cents
2024: 678,1 cents
- Ordinary dividend per share down 14% to 24,0 cents
2024: 28,0 cents
- Store network unchanged at 211
June 2025: 2010; December 2024: 211
The Group's results were driven by the low-growth environment, continued intense competition,
dumping of cheap tiles in the country and constrained consumers. We believe there is more
potential to leverage our world-class technology to ensure enhanced quality and additional
product innovation, as we drive efficiencies and improve productivity to mitigate selling
price deflation. Lance Foxcroft, Chief Executive Officer
OVERVIEW
Founded in 1969, Italtile Limited is a Proudly South African manufacturer, franchisor and
retailer of tiles, bathroomware and other complementary home-finishing products. The Group's
retail brands are CTM, Italtile Retail and TopT, represented through a total network of
211 stores, including seven online webstores. The brand offering targets homeowners across
LSM 4 to 10. The retail operation is strategically supported by a vertically integrated
supply chain comprising key manufacturing and import operations and an extensive property
portfolio.
TRADING ENVIRONMENT
The trading environment during the six-month reporting period ("Interim Period") continued
to be characterised by intense competition, weak demand and an imbalance between excess supply
and weak demand due mainly to the dumping of cheaper products, exacerbated by the strengthening
of the Rand. Excess capacity and production in neighbouring countries continues to result in
overstocking, depressed pricing and dumping in South Africa. Above-inflation increases in
input costs, such as gas, electricity and rates and taxes, resulted in further margin pressure.
Unreliable energy transmission and distribution infrastructure, which has resulted in numerous
power interruptions, has caused damage to our equipment and reduced productivity and yield.
Consumers remained under pressure from debt and diminished income for discretionary spending.
They continued to be highly price sensitive, prioritising value and focusing on necessities,
while delaying discretionary spend on home renovations. The "Buy Now Pay Later" credit option
has become increasingly popular.
GROUP PERFORMANCE
We were disappointed with retail sales and the performance at Ceramic Industries in the
period. While advances have been made in our employee engagement and customer satisfaction
metrics, this has not yet translated to market share gains.
In the results for the second quarter of the previous financial year, our performance was
buoyed by increased spending following the release of cash from the two-pot pension fund
reforms. This benefit was not repeated in the Interim Period, during which we experienced
subdued trading and reduced sales.
CTM endured a disappointing trading period, with sales volumes down 3% as competition,
oversupply of tiles in the market, and constrained consumer discretionary spending put
pressure on margins and profitability.
Italtile Retail performed well with higher sales volumes and a growth in market share.
Improved performance in the Projects division was boosted by our appointment as the
predominant tile supplier to the Club Med project in KwaZulu-Natal.
We were disappointed with TopT's failure to gain more market share as independent retailers
opened more stores and informal traders continued to offer cheap products. TopT's revenue is
highly sensitive to consumers' disposable income as seen in sales during December, after bonuses
were paid. TopT will open four new stores in the next six months.
The webstores - an integral part of our omnichannel platform - reported gradually increasing
traffic, attributable to the innovative user interface and enhanced, creative digital content
as we strive to provide customers with a "store in their pocket".
Ceramic Industries' regional trading conditions remained extremely difficult as disappointing
performance in the retail segment and poor sales resulted in capacity utilisation of 77%.
Cost reductions were not sufficient to offset the decline in profitability. Our drive to
increase sales, improve efficiencies and yields, and reduce costs continues. Ceramic Industries'
exports declined given aggressive competition and protectionist strategies intended to restrict
market access in certain SADC countries.
We continued to invest in technology, specifically on the glaze line to differentiate and stay
at the forefront of fashion. We are producing two new large-format rectified tiles from Vitro
and anticipate commissioning the Gryphon polishing line in March 2026. We aim to manufacture
products to provide customers with a suitable alternative to discontinued products previously
produced by Johnson Tiles. While the sales volumes and profitability at Betta improved, we were
disappointed by the overall performance of the business unit. Plans are in process to improve
the performance.
During this Interim Period, management identified an inconsistency in Ceramic Australia's internal
monthly reporting. The information established to date indicates that a negative impact of
AUD7.6 million - fully adjusted for in the current period - is unlikely to cause adjustments to
the prior year results. An enquiry as to the basis of the inconsistency is underway.
Ezee Tile's brand reputation for quality product at affordable prices is leading to stronger demand
from third-party customers. The warehouse management system and logistics solutions at the Vulcania
factory have been integrated and are delivering the anticipated benefits and results. The revamped
Durban factory has improved supply to KwaZulu-Natal and the new Mokopane factory will position
Ezee Tile to grow sales and improve market share in the Limpopo region. Launching products for the
construction market remains a priority. While we continue to support sales to Group stores, we see
good prospects to gain more market share in the open market, and in Kenya and Zimbabwe.
GAS UPDATE
While the immediate threat to natural gas supply has been delayed to June 2028, we will continue to
monitor developments in the supply and pricing of piped natural gas, liquid natural gas,
trucked natural gas, methane rich gas, biogas and synthetic gas from coal to assess options for
affordable gas supply. We await pricing from Sasol on methane rich gas and will subsequently evaluate
the timing of and necessity for our coal-fired hot air generator project.
LEADERSHIP CHANGES (announced on SENS on 2 December 2025)
Lance Foxcroft, CEO of the Group since January 2022, will step down as CEO, due to changed family
circumstances, and resign as a director on 30 June 2026. Effective on 1 July 2026, he will be
appointed as CEO of Ceramic Industries and Gerard Maartens will be appointed COO. Brandon Wood,
current COO, was appointed as CEO Designate of Italtile on 1 January 2026 and will assume
the position of CEO on 1 July 2026.
OUTLOOK AND PROSPECTS
The economic outlook for South Africa for the first half of 2026 is cautiously optimistic,
with expectations of a continued, modest recovery from the 2025 growth trajectory although
geopolitical tensions and slow economic growth are likely to temper rapid improvement, and imports
are expected to increase due to the stronger Rand. Early projections suggest GDP growth will increase
to between 1,3% and 1,6%. This is supported by reduced electricity constraints, progress in logistics
reforms, lower inflation and further interest rate cuts. We hope that these positive factors will
reinvigorate building and construction and that home renovations will increase as lower borrowing
costs make projects more feasible.
Removing the impact of the amount subject to the ongoing enquiry in Australia, we are expecting
a similar performance in the second half of the financial year to that achieved in the first half.
Our focus remains on growth through increased market share and customer satisfaction. To prioritise
selling and providing customer satisfaction, we are introducing measures to simplify administration,
as well as focusing on the new generation Tivoli product and decor-style central displays in stores
and decreasing points of friction for customers. We have an ongoing programme to improve the supply chain
by strengthening our operational teams. We continue to recruit, train and develop exceptional leaders and
operational teams to deliver our ambitions.
The priority in Ceramic Industries is to remain competitive and to improve sales through driving
efficiencies and reducing costs.
We will focus on the growth levers within our control to realise the opportunities within our business.
We will do this by improving our competitiveness at all touchpoints, namely our iconic brands,
leading-edge technology and products, vertically integrated supply chain, and resilient, capable teams
and franchise partners.
DECLARATION OF ORDINARY CASH DIVIDEND
The Group's dividend cover is two and a half times. The Board has declared an interim gross ordinary
cash dividend (number 119) for the Interim Period ended 31 December 2025 of 24,0 cents per ordinary
share (2024: 28,0 cents) out of income reserves to all shareholders recorded in the shareholder register
of Italtile as at the record date of 20 March 2026. The Group has 1 321 654 148 shares in issue,
including 21 592 234 shares held by the share incentive and retention trusts, 62 839 093 shares held
as Broad-Based Black Economic Empowerment treasury shares and 45 274 730 shares held by Italtile
Ceramics Proprietary Limited.
The gross local ordinary dividend amount is 24,0 cents per share for shareholders exempt from the
dividends tax and the net local ordinary dividend amount is 19,2 cents per share for shareholders
liable to pay the dividends tax.
Italtile's income tax reference number is 9050182717.
Dividend declaration date Monday, 2 March 2026
Last day to trade cum dividend Tuesday, 17 March 2026
Date to commence trading ex-dividend Wednesday, 18 March 2026
Record date Friday, 20 March 2026
Payment date Monday, 23 March 2026
Share certificates may not be rematerialised or dematerialised between Wednesday, 18 March 2026
and Friday, 20 March 2026, both days inclusive.
These condensed unreviewed consolidated interim financial statements for the six months ended
31 December 2025 and cash dividend declaration and results announcement were published on SENS
on 2 March 2026 and are also available on Italtile's website at
https://www.italtile.com/reports-and-results.php.
For and on behalf of the Board
L A Foxcroft L Booysen
Chief Executive Officer Chief Financial Officer
Johannesburg
27 February 2026
RESULTS ANNOUNCEMENT
The content of this results announcement is the responsibility of the Board. Shareholders are
advised that this announcement represents a summary of the information contained in the full
announcement which has been released on SENS and is available on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2026/jse/isse/ite/interims26.pdf and on Italtile's website at
https://italtile.com/sensannouncements.php. This results announcement was published on SENS on
Monday, 2 March 2026.
Any investment decisions made by investors and/or shareholders should be based on a consideration
of the Results as a whole and investors and shareholders are encouraged to review the Results,
as detailed herein.
Registered office: The Italtile Building, 72 Peter Place, Bryanston, 2021, Gauteng, South Africa
Postal address: PO Box 1689, Randburg, 2125, South Africa
Transfer secretaries: Computershare Investor Services Proprietary Limited
Company Secretary: Acorim Proprietary Limited
Sponsor: Merchantec Capital
Auditor: PricewaterhouseCoopers Inc.
www.italtile.com
Date: 02-03-2026 07:15:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
