Italtile reports creditable performance despite exceptionally difficult trading conditions
Italtile's Tsundzukani Mhlanga accredits leveraging robust cost leadership and unparalleled customer experience.
On 22 August, Italtile announced its annual year-end results and the company’s 50th anniversary.
About the results, Italtile executive director of group finance and administration Tsundzukani Mhlanga said:
“Despite the exceptionally difficult trading conditions experienced, the group has recorded a creditable performance, achieving our stated goal of delivering improved headline earnings growth for the year.”
She said that this is a reflection of leveraging opportunities in the business, from “robust cost leadership” to “striving for unparalleled customer experience”.
“Our people, franchise partners and portfolio of brands are key to another successful year in the group’s five-decade history,” Tsundzukani said.
The results reported were as follows:
- Total system-wide turnover increased 15.2 percent to R10 billion.
- Total retail store turnover grew 6.1 percent, while like-on-like retail store turnover increased by 4.2 percent.
- Manufacturing sales rose 1.4 percent.
- Trading profit increased by 18.4 percent to R1 797 million.
- Average selling price inflation is estimated at 2.7 percent in the retail operation and at three percent in the manufacturing operation.
- Basic earnings per share grew by eight percent to 102.6 cents.
- Headline earnings per share improved by 7.2 percent to 101.8 cents.
- Capital expenditure of R622 million was incurred during the period.
- A final ordinary dividend of 19 cents per share was declared, which together with the interim dividend of 22 cents per share, produces a total ordinary dividend of 41 cents per share, an increase of eight percent.