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Key Points
- Italtile’s FY 2024 revenue slightly dipped by 0.79%, reaching R9.06 billion ($509.1 million) amid challenging economic conditions.
- Profit declined by nearly 10%, dropping to R1.51 billion ($84.6 million), reflecting the impact of sluggish growth and inflation.
- Total assets rose by 6.91% to R10.44 billion ($587.71 million), signaling the company’s adaptability in a tough market.
Italtile, a leading Gauteng-based retailer and manufacturer of bathroom and home products controlled by South African businessman Giovanni Ravazzotti, released its financial results for the full year 2024, revealing a mixed performance amid a tough operating environment.
According to its recently published financial results for the fiscal year ended June 30, 2024, the company, saw its revenue dip slightly to R9.06 billion ($509.1 million), down 0.79 percent from R9.14 billion ($513.09 million) in the previous year.
Profit drops nearly 10 percent as economic pressures mount
The modest decline in revenue reflects the resilience despite challenging economic conditions, including sluggish growth, high interest rates, inflation, and an oversupply in the tile manufacturing industry. Italtile’s key brands—CTM, Italtile Retail, and TopT—demonstrated consistent retail turnover during this period, underscoring the company’s market position.
However, Italtile faced greater challenges on the earnings front, with profit declining by 9.89 percent, from R1.65 billion ($92.83 million) in 2023 to R1.51 billion ($84.6 million) in 2024. CEO Lance Foxcroft reiterated the company’s commitment to maintaining its industry leadership by enhancing its retail and manufacturing capabilities. “Our primary focus is on improving the Group’s competitive position to retain our industry leadership through our robust retail and manufacturing assets and teams,” Foxcroft stated.
Italtile’s Total assets increase by 6.91 percent, signaling adaptability
Italtile, listed on the Johannesburg Stock Exchange and comprising well-known brands such as Italtile Retail, CTM, TopT, and U-Light, serves as a bellwether for assessing consumer expenditure health in South Africa. Giovanni Ravazzotti, who founded the company in 1969 and holds a 33.9 percent stake, remains one of the country’s wealthiest individuals.
Despite the challenges, Italtile’s total assets grew by 6.91 percent, rising from R9.77 billion ($551.5 million) as of June 30, 2023, to R10.44 billion ($587.71 million) as of June 30, 2024. The company’s retained earnings also increased from R4 billion ($225.8 million) to R4.9 billion ($276.6 million), signaling adaptability in a tough market.
Looking ahead, Italtile is focused on expanding its footprint with new TopT stores, enhancing CTM’s performance, and growing its online sales. While the near-term trading environment remains challenging, the company’s strong brands, dedicated teams, and leading products position it well to navigate these difficulties and sustain its success in the South African market.
