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Voluntary Sales Update
ITALTILE LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1955/000558/06)
Share code: ITE ISIN: ZAE000099123
("Italtile" or "the Group")
VOLUNTARY SALES UPDATE
This sales update pertains to the five-month period from 1 July 2022
to 30 November 2022 ("Review Period") compared to the prior
corresponding period from 1 July 2021 to 30 November 2021 (“Prior
Period”).
Sales related to Ceramic Industries Proprietary Limited (“Ceramic”)
and Ezee Tile Adhesive Manufacturers Proprietary Limited (“Ezee Tile”)
are referred to as "manufacturing" sales to distinguish them from
"retail" sales reported by Italtile´s retail brands, namely CTM,
Italtile Retail, TopT and U-Light.
TRADING CONDITIONS
The Review Period featured continued instability in the global
environment and the local economy.
Persistent higher inflation resulted in margin pressure as cost
inflation outpaced sales inflation. Increased building costs and
reduced discretionary spend continued to negatively impact
affordability, which subdued investment sentiment and influenced cost
conscious homeowners to defer or scale down on renovation and new
build projects.
Consumer sentiment was further negatively impacted by higher interest
rates and generally adverse social and economic conditions.
Despite mitigation measures implemented by the Group, unprecedented
load shedding and failure of state energy infrastructure caused
significant downtime and damage to equipment in the manufacturing
division, impacting negatively on productivity and profitability.
In line with consistent management policy, the strategic focus
remained on the growth levers within our control and influence, being
constant innovation and investment in delivering an unsurpassed
shopping experience for our customers; improved productivity; cost
leadership; and partnerships with our people.
SALES PERFORMANCE
Retail brands
Retail store turnover reported by our brands CTM, Italtile Retail,
TopT and U-Light, increased by 2.3% on the Prior Period.
Combined manufacturing sales increased 7.8% on the Prior Period,
primarily due to price increases implemented during the Review Period.
Integrated supply chain importers
These businesses, comprising Cedar Point, International Tap
Distributors and Distribution Centre, reported a 3.0% increase in
sales compared to the Prior Period.
OUTLOOK
The challenging macro-economic conditions outlined in this update are
expected to persist for the remainder of the six-month period to
31 December 2022.
In line with the statement made in the year-end results announcement
published on SENS on 25 August 2022, given the prevailing instability
in the global environment and the uncertain state of the local economy,
it is imprudent to provide more specific guidance regarding future
performance at this point.
The above information has not been reviewed and reported on by the
Group´s external auditors.
Johannesburg
9 December 2022
Sponsor
Merchantec Capital
Date: 09-12-2022 12:10:00
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