Italtile expects its full-year earnings to surge by as much as 70%
ITALTILE expects its full-year earnings to surge by 70 percent, boosted by a high demand for its products and an 18.5 percent increase in total retail store sales.
The manufacturer, franchisor and retailer of tiles, bathroomware and other related home-finishing products said its expected its headline earnings per share (Heps) and earnings per share for the year to end June to increase by at least 70 percent compared to the Heps of 79.2 cents a share and earnings per share (Eps) of 78.3c.
The group expected both Heps and Eps to be in excess of 134.6c and 133.1c respectively.
However, the group said on Friday it would issue a further update once there was greater clarity regarding the anticipated range of improvement in Eps and Heps for the year to end June.
Italtile attributed the robust performance to an improvement in in-stock levels as it built up inventory depleted due to unexpectedly high demand driven by the home improvement surge.
“The group’s local integrated supply chain played a pivotal role in ensuring consistent availability of a wide product range, sustained lower interest rates which supported homeowners’ spend on their primary asset, and the reallocation to home improvements of some funds previously incurred on transport, travel and other recreational pastimes,” Italtile said.
However, Italtile said the continued uncertainty created by the ongoing impact of the pandemic on future trading conditions inhibited precise guidance in terms of its performance for the balance of the current financial year.
But trading was positive in the three quarters of the financial year as the group achieved a double-digit growth in sales for the nine months to end March, with total retail store sales improving by 18.5 percent between July 1 and March 31, 2021, with likefor-like retail store sales growing by 17.1 percent.
Its manufacturing sales for the period increased by 25.4 percent compared to the previous corresponding period and the group achieved double-digit growth across all of its operations, namely the retail brands, supply chain importers and manufacturing businesses.
Italtile manufacturing sales consists of Ceramic Industries and Ezee Tile Adhesive Manufacturers to distinguish them from retail sales reported by Italtile's retail brands like CTM, Italtile Retail, TopT and U-Light. Italtile expected to release its financial results for the year to end June in August.
Italtile’s share price dropped 2.06 percent to close at R17.30 on the JSE on Friday.