Italtile Predicts Marginal Earnings Growth Amid Weak Ceramics Market
- brg_news_room
- 22 hours ago
- 1 min read
South Africa: Italtile expects only a marginal 0.1% to 5.2% rise in headline earnings per share (HEPS) for the year ending June 30, 2025, forecasting between USD 1.38 and USD 1.45 compared to USD 1.38 last year. The ceramics market has weakened due to intense competition, over-capacity, and subdued demand, as South Africa’s economy showed almost no GDP growth, impacting consumer confidence and spending. The group’s encouraging first-half performance, supported by the two-pot pension fund cash injection, stalled in the second half, resulting in decreased system-wide turnover.
Retail brands CTM, Italtile Retail, and TopT achieved a 2% annual increase in results, maintaining market share, with like-for-like sales up 1% and price inflation of 0.2%. Manufacturing sales fell 5% due to excess capacity, despite Ezee Tile’s 4% growth, while the import division saw a 3% drop in sales value. Average selling price deflation was 1.6% in manufacturing and 0.9% in imports. The group’s gross margin remained flat to support affordability. Italtile expects challenging conditions to persist, with growth, margins, and profitability under pressure.
Source: African News Agency