JSE-listed tile manufacturer Italtile achieved creditable retail turnover growth in the six months ended December 31, despite the weak demand environment.
The company expects to report headline earnings per share (HEPS) of between 54.7c and 55.8c for the six months, compared with HEPS of 54.7c reported for the six months ended December 31, 2018.
HEPS were impacted by a one-off charge of R39-million in the reporting period, related to a broad-based black economic empowerment transaction that was concluded with Yard Investment Holdings.
Excluding the transaction, HEPS for the six months under review were between 58c and 59.1c.
Italtile attributed the retail turnover growth to its focus on improving the customer experience and driving sales, through investment in people, technology, store layouts, merchandising and range.
Total retail store turnover rose by 4.5% for the interim period under review, compared with the prior interim period. The company said the average selling price inflation was 1.5%.
The like-for-like retail store turnover growth of 1.7% was below management’s benchmark.
On the manufacturing side, Italtile cited generally softer consumer demand and tile wholesalers in the country being overstocked, impacting negatively on the Ceramic business’s sales, which were flat in the six months under review, compared with the prior corresponding six months.
However, the company noted that, as remedial measures took effect, the Ezee Tile business succeeded in reversing the disappointing performance reported in the prior interim period. The business delivered good sales growth of 7.3%, which contributed to the manufacturing division’s total sales growth of 1.3%.
Italtile said the average selling price inflation in the manufacturing division was 1% for the period under review.
The company will publish its financial results on February 13.