Italtile (ITE) 1H24 – Results Snapshot

Diluted HEPS 67.5cps (-14.7% y-y).
Revenue down -3.2% y-y to R4.8bn.
Group GPM down 290bps to 41.3%, with Retail GPM up 10bps to 36.3%, Manufacturing GPM down 410bps to 25.1%, and Supply and Support Services GPM up 60bps to 11.9%.
Expense growth +2.8% y-y with expense to sales ratio up from 20.7% to 22.0%.
OPM decreased to 23.9%.
Dividend of 27.0cps (1H23: 32cps).
Gross debt down to R500m (1H23: R556.0m) with cash R1 458m (1H23: R830m).
Like-for-like retail store turnover declined by 3%, with lower sales volumes partially offset by average price inflation of 2.6%.
Ceramic Industries turnover was down 6%, and with input costs outpacing selling prices, resulted in a 32% decrease in profits which affected the Group.
ITE has made the decision to exit the U-Light business and will be wound-up by the end of the financial year.