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Voluntary Trading Statement for the Year Ended 30 June 2017
ITALTILE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1955/000558/06)
Share code: ITE ISIN: ZAE000099123
(“Italtile” or “the Group”)
VOLUNTARY TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2017
Italtile is currently finalising its results for the year ended 30 June 2017 (“the period”).
Towards the end of the first six months of the period the trading environment deteriorated
markedly, featuring intensified economic pressure and socio-political uncertainty. Under these
adverse conditions, consumers further curtailed discretionary spend on home improvements and
renovations, while both public and private sectors suspended investment in the new build segment.
The Group’s performance for the period reflects this downturn, with notably stronger results
reported for the first half when compared to the second half.
System-wide turnover of R6.21 billion for the period was 4.3% higher when compared to the prior
comparative period (2016: R5.96 billion). System-wide turnover is defined as the aggregate of the
Group’s consolidated turnover as reported (total sales by Group owned entities and corporate
stores, excluding sales from owned supply chain businesses to corporate stores) and the turnover of
franchisees of the Group.
The Group’s basic earnings per share is expected to be between 88.9 cents and 91.1 cents (2016:
87.8 cents), representing an increase of between 1.3% and 3.8% compared to the prior
corresponding period. Headline earnings per share is expected to be between 84.5 cents and
86.3 cents for the period, reflecting a decrease of between 2.8% and 0.7% (2016: 86.9 cents)
compared to the prior corresponding period.
Basic earnings include the impact of a R37 million once-off gain realised on the sale of the Group’s
Australian property holding company in December 2016 (excluded from headline earnings).
While disappointing sales and profit growth failed to meet management’s targets, good progress
was achieved in terms of the Group’s stated goals for the second half of the period to reduce
operating costs and improve its working capital position. In this regard, cash and cash equivalent
reserves at the end of the period increased to R511 million (2016: R347 million), representing an
increase of 47%, and inventory levels decreased by 21% to R548 million (2016: R693 million), while
simultaneously reflecting enhanced quality.
REVIEW OF RESULTS
The information on which this announcement is based has not been reviewed or reported on by
Italtile's auditors.
PUBLICATION OF RESULTS
The Group's results for the year ended 30 June 2017 are expected to be published on SENS on or
about 16 August 2017.
Johannesburg
1 August 2017
Sponsor
Merchantec Capital
Date: 01/08/2017 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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