ITALTILE LIMITED - Sales Update and Voluntary Trading Statement for the year ended 30 June 2024

Sales Update and Voluntary Trading Statement for the year ended 30 June 2024

ITALTILE LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1955/000558/06)
Share code: ITE  ISIN: ZAE000099123
("Italtile" or "the Group")


SALES UPDATE AND VOLUNTARY TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2024


SALES UPDATE

Trading Environment

In the year ended 30 June 2024 ("Review Period"), the increased cost of living weighed heavily on
consumers. Homeowner confidence remained subdued in light of sustained high interest rates and
inflation, and demand was at low levels across the industry. In the context of low GDP growth and
weak consumer sentiment and spend, the building cycle downturn has yet to recover.

Group performance

Italtile's retail brands are CTM, Italtile Retail and TopT, each household names in their respective
market segments. The retail division's full-year results were 4.7% lower than the prior comparable
year. The division recovered market share and performed better in the second half of the period than
the first half. Full-year like-on-like sales decreased 2% compared to the prior period, with average
selling price inflation of 2.1%.

Ceramic Industries ("Ceramic") continued to fight for market share in the difficult environment.
Despite efficiency improvements in manpower, systems, quality and products, the business was not
able to grow tile volumes and improve capacity utilisation to leverage economies of scale, which
continued to impact negatively on Ceramic's contribution to the Group's results. Ceramic and Ezee
Tile's combined manufacturing sales decreased by 6% in value for the Review Period. While Ceramic
reported lower volumes and profits, Ezee Tile grew both metrics after completing commissioning of
the new Vulcania facility. Combined average manufacturing selling price inflation was 1% for the
period.

In the integrated supply chain, our import businesses, International Tap Distributors ("ITD"), Cedar
Point and Distribution Centre ("DC"), collectively reported an increase in sales value of 2%, with
average selling price inflation of 3.7%.

The Group's consolidated gross margin declined by 2.6%, in line with our efforts to support affordability
for customers and compete for market share in the context of subdued demand and increased
competition.

In the year ahead, our focus will remain on gaining market share and executing operational excellence
across our retail and manufacturing assets to improve competitiveness, drive growth and enhance our
industry leading position.

Investor Communications     083 395 8608    englishd@italtile.co.za                          Page 1 of 2


VOLUNTARY TRADING STATEMENT

The Group is currently finalising its results for the Review Period.

In terms of paragraph 3.4(b) of the JSE Limited ("JSE") Listings Requirements, shareholders are advised
that earnings per share ("EPS") and headline earnings per share ("HEPS") for the Review Period are
expected to be in the range outlined below:

                     Year ended 30 June 2024        Year ended 30 June 2023    Percentage decrease
                     (cents)                        (cents)                    (%)
EPS                  117.8 – 125.1                  132.6                      11.1 – 5.6
HEPS                 118.7 – 126.2                  132.3                      10.3 – 4.7

The disparity between EPS and HEPS is attributable to impairments of R15 million recognised on
property assets during the Review Period.

PUBLICATION OF RESULTS

The Group's results for the Review Period are expected to be published on SENS on or about 26 August
2024.

The above information has not been reviewed and reported on by the Group´s external auditors.


Johannesburg
12 August 2024

Sponsor
Merchantec Capital




Investor Communications      083 395 8608    englishd@italtile.co.za                       Page 2 of 2

Date: 12-08-2024 08:00:00
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