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South African businessman Giovanni Ravazzotti, renowned as one of the nation’s wealthiest and most influential business figures, is poised to collect a substantial windfall of $5.03 million in dividends from his stake in Italtile.
Ravazzotti, a prominent figure in the business landscape, is set to gain a remarkable dividend of R94.03 million ($5.03 million) owing to his significant 33.88-percent ownership in Italtile. This amounts to a total of 447,746,694 shares in the company.
Italtile, recognized as a premier franchisor, retailer, and manufacturer in the tile and bathroomware sector, operates a range of prominent retail brands, including Italtile Retail, CTM, TopT, and U-Light. Additionally, the company serves as a barometer for measuring consumer expenditure health within the South African market.
At the end of its 2023 fiscal year, Italtile reported a modest two-percent increase in revenue. However, the company’s profits took a considerable hit, declining by 14 percent from the previous year. Specifically, the profit declined from R1.93 billion ($103.2 million) in 2022 to R1.65 billion ($88.3 million) on June 30.
The decrease in earnings during this period can be attributed to the depreciation of the South African rand. This currency weakening substantially escalated the operating expenses and direct production costs associated with imported goods for the company.
Over the review period, direct production expenses surged from R4.86 billion ($260 million) to R5.18 billion ($277.1 million), while operating costs increased from R1.86 billion ($99.5 million) to R2.03 billion ($108.6 million). These mounting costs collectively contributed to driving the company’s profits below $90 million.
In light of the declining earnings, the board of directors at Italtile declared a final gross ordinary cash dividend of R0.21 ($0.0112) per share. The dividend will be disbursed to all shareholders, with funds set to be transferred to their respective bank accounts on Sept. 18.
The announced dividend represents a decrease of 28.5 percent when compared to the R0.27 ($0.0144) per share dividend paid to shareholders in the previous year.
