Italtile predicts modest earnings growth amid challenging trading conditions

ITALTILE said ceramics market trading conditions have continued to deteriorate and it predicted only a marginal 0.1% to 5.2% increase in headline earnings per share (HEPS) for the financial year to June 30, 2025.

- EDWARD WEST

The manufacturer, distributor, and retailer of ceramic tiles, sanitary-ware, and bathroom accessories said it expected HEPS to be between 123.1 cents and 129.4 cents, compared with 123 cents that was reported last year.

The group's directors said in a trading statement on Monday that intense competition, overcapacity, and subdued demand has exerted pressure on tile manufacturers. The South African economy showed almost no GDP growth, resulting in depressed consumer confidence and low spending in the building and construction sector.

“Consumers remain price-conscious and constrained by tight budgets while searching for trusted quality and good value,’ Italtile’s directors said.