Wrap Text
Reviewed Condensed Group Annual Financial Statements for the year ended 30 June 2026 and cash dividend declaration
Italtile Limited
Incorporated in the Republic of South Africa
(Registration number:1955/000558/06)
Share code: ITE
ISIN: ZAE000099123
("Italtile" or "the Group")
Reviewed Condensed Group Annual Financial Statements for the year ended 30 June 2026
and cash dividend declaration
- System-wide turnover up 1% to R11,3 billion
2025: R11,3 billion
- Trading profit down 10% to R1,8 billion
2025: R2,1 billion
- Earnings per share down 10% to 113,1 cents
2025: 125,6 cents
- Headline earnings per share down 9% to 113,4 cents
2025: 125,1 cents
- Net cash down 21% to R1,7 billion
2025: R2,2 billion
- Net asset value per share down 7% to 653,6 cents
2025: 705,0 cents
- Ordinary dividend per share down 10% to 45,0 cents
2025: 50,0 cents
- Special dividend per share 25,0 cents
2025: 98,0 cents
Our commitment to exceptional customer experience has supported resilience and retail share despite
challenging conditions. Customers choose our trusted brands for quality, affordable fashion, and outstanding
service when deciding where to spend their hard-earned savings. Our skilled teams and integrated manufacturing
and supply chain remain key advantages, positioning us to seize opportunities as trading improves.
- Brandon Wood, 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 213 stores, including seven online webstores in South
Africa and sub-Saharan Africa. The retail operation is supported by a vertically integrated supply chain
comprising manufacturing and import operations and an extensive property portfolio.
Group performance
System-wide turnover increased by 0,6% to R11,3 billion for the year. Subdued demand, rising input costs and
strong competition placed significant pressure on margins, with the Group's achieved gross margin declining
from the prior year. Sales growth and market share gains remained key priorities, while cost discipline and
operational efficiencies mitigated cost pressures.
Retail store system-wide revenue rose by 0,4% to R7,7 billion. Average selling price inflation was 1,8%.
Retail margins increased by 0,5% due to improved retail execution. Webstores increased traffic and sales,
supported by innovative digital content and a personalised sales experience.
Trading conditions in Ceramic's market continued to deteriorate, mainly due to excess manufacturing capacity
in Southern Africa. Sales decreased by 1,1% and margins remained under pressure, affected by higher costs.
Italtile is reviewing its continued presence in Australia and is in advanced discussions with a prospective
buyer with the due diligence process ongoing. Ezee Tile's revenue remained stable, while margins and
profitability were affected by increased demand for entry-level products.
Italtile's integrated Supply Chain import businesses' revenue decreased by 6,4%. Gross margins improved in
the Cedar Point and ITD businesses enabling them to absorb higher fuel costs, which benefited customers.
We continued to drive cost leadership across the business. Although like-for-like costs were well controlled,
efficiencies and productivity gains were insufficient to offset underlying cost increases. Working capital
management remained a key focus with consolidated inventory decreasing by 2,9% to R1,2 billion. The Group
continued to benefit from its integrated supply chain, with 71% of total procurement sourced from local
manufacturers and suppliers. Significant work was also completed to optimise the product mix and ranges.
The Group's trading profit declined by 10,4% to R1,8 billion. Basic earnings per share ("EPS") decreased by
10,0% to 113,1 cents (2025: 125,6 cents), while basic headline earnings per share ("HEPS") decreased by 9,4%
to 113,4 cents (2025: 125,1 cents).
Italtile's strong, consistent cash generation supports the Group's investment requirements and dividend
payments. Our solid balance sheet and low debt levels provide a strong financial foundation for growth.
We maintain prudent capital allocation and cost control to strengthen resilience. The Group invested
R443 million in capital expenditure, completed share buybacks of R201 million and paid dividends to shareholders
amounting to R1,8 billion. Notwithstanding these payments, the cash balance at year-end was R1,7 billion.
Prospects
While South Africa's GDP outlook is subdued, we remain confident in our sector's long-term attractiveness.
Our view for the next 12 months is tempered by the ongoing Middle East conflict's impact on costs and consumer
confidence and by caution ahead of the next local government election. We expect these headwinds to constrain
growth, margins and profitability in the year ahead.
Management expects the provisional anti-dumping duties on ceramic and porcelain wall and floor tiles to have a
positive effect once overstocked positions have been reduced. We will engage with authorities to secure support
for a long-term market solution.
We believe that disciplined focus on the controllable aspects of our business will strengthen our ability to
capitalise on improved trading conditions. We will continue to build stronger teams across the business to
improve yields, increase productivity, reduce waste and costs, and compete sustainably. As part of our ongoing
asset base review, we may dispose of assets that do not meet our risk, return, and growth criteria.
Italtile remains well positioned to compete through its sound assets, capable and motivated teams, iconic and
trusted brands, technology investments, industry-leading products, strong balance sheet, and the advantage of
a vertically integrated supply chain.
Board changes
Lance Foxcroft has stepped down from his position as CEO of the Group and of Ceramic Industries due to family
circumstances. Brandon Wood assumed the position of CEO on 1 July 2026. His business and industry insight,
leadership skills, and wide-ranging experience across the Group's operations will ensure consistency and
continuity of Italtile's values and strategic direction.
Declaration of ordinary and special cash dividend
Ordinary dividend
The Group maintains a dividend cover of two and a half times. The Board has declared a final gross ordinary cash
dividend (number 120) for the year ended 30 June 2026 of 21,0 cents per ordinary share (2025: 22,0 cents). This
final dividend, together with the interim gross ordinary cash dividend of 24,0 cents per share (2025: 28,0 cents
per share), produces a total gross ordinary cash dividend declared for the year ended 30 June 2026 of 45,0 cents
per share (2025: 50,0 cents).
Special dividend
Given the Group's strong cash generation and cash reserves being in excess of operational requirements, the Board
has declared a special cash dividend (number 10) of 25,0 cents per share (2025: 98,0 cents).
Italtile has obtained the relevant South African Reserve Bank approval in respect of the special dividend, and the
Board has reasonably concluded that the Group will satisfy the solvency and liquidity test immediately after
distribution thereof and for the next 12 months.
In accordance with paragraph 7.23 of the Listings Requirements of the Johannesburg Stock Exchange
("JSE Listings Requirements"), the following additional information is provided:
- the dividends (ordinary and special) have been declared out of income reserves;
- Italtile's income tax reference number is 9050182717; and the Group has 1 321 654 148 shares in issue, including
21 592 234 shares held by the share incentive and retention trusts, 62 277 077 shares held as Broad-Based Black
Economic Empowerment treasury shares and 68 667 167 shares held by Italtile Ceramics Proprietary Limited;
- the local ordinary dividend withholding tax rate is 20% (twenty percent);
Ordinary dividend
- the gross local ordinary dividend amount is 21,0 cents per share for shareholders exempt from the dividends tax;
- the net local ordinary dividend amount is 16,8 cents per share for shareholders liable to pay the dividends tax;
- the local ordinary dividend withholding tax amount is 4,2 cents per share for shareholders liable to pay the
dividends tax;
Special dividend
- the gross local special dividend amount is 25,0 cents per share for shareholders exempt from dividends tax;
- the net local special dividend amount is 20,0 cents per share for shareholders liable to pay the dividends
tax; and
- the local special dividend withholding tax amount is 5,0 cents per share for shareholders liable to pay the
dividend tax.
Timetable for cash dividend
The salient dates relating to the dividend are as follows:
Declaration date Monday, 24 August 2026
Last day to trade cum dividend Tuesday, 8 September 2026
Shares commence trading ex-dividend Wednesday, 9 September 2026
Record date Friday, 11 September 2026
Payment date Monday, 14 September 2026
Share certificates for ordinary shares may not be dematerialised or rematerialised between Wednesday,
9 September 2026 and Friday, 11 September 2026, both days inclusive.
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:
https://senspdf.jse.co.za/documents/2026/jse/isse/ite/ye26.pdf
and on Italtile's website at https://italtile.com/sens-announcements.php.
This results announcement was published on SENS on Monday, 24 August 2026.
The condensed Group results for the year ended 30 June 2026 were reviewed by PricewaterhouseCoopers Inc. ("PwC"),
who expressed an unmodified review conclusion thereon. Shareholders are advised that, in order to obtain a full
understanding of the nature of the auditor's engagement, and more specifically, the nature of the information
reviewed, they should obtain a copy of PwC's report available at the following link:
https://www.italtile.com/reports-and-results.php or from the Company Secretary who is contactable on +27 11 325 6363
or bronwyn.muller@merchantec.com.
Any investment decisions made by investors and/or shareholders should be based on a consideration of the full
announcement as a whole and investors and shareholders are encouraged to review the full announcement, as detailed
herein.
Registered office: The Italtile Building, 72 Peter Place, Bryanston, 2021
Postal address: PO Box 1689, Randburg, 2125
Transfer secretaries: Computershare Investor Services Proprietary Limited
Company Secretary: Acorim Proprietary Limited
Sponsor: Merchantec Capital
Auditor: PricewaterhouseCoopers Inc.
Executive directors: BG Wood (Chief Executive Officer), L Booysen (Chief Financial Officer)
Non-executive directors: LR Langenhoven (Chairperson), GAM Ravazzotti, SM du Toit, SG Pretorius,
LC Prezens (Lead independent director), A Mathole, L M Lourens, M Matsipa
www.italtile.com
Date: 24/08/2026 05:15:00
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