JSE-listed tile manufacturer Italtile has reported a 0.6% year-on-year increase in revenue to R11.3-billion for the financial year ended June 30, while trading profit decreased by 10.4% year-on-year to R1.8-billion, owing to subdued demand, rising input costs and aggressive competition.
Basic earnings per share (EPS) decreased by 10% to 113.1c a share and basic headline earnings per share (HEPS) decreased by 9.4% to 113.4c a share.
However, Italtile continued to generate strong cash flow and kept cash balances resilient despite R201-million in share buybacks and higher capital expenditure during the year, as well as R1.8-billion in dividend payments.
The company declared a total ordinary dividend of 45c a share for the year. Owing to its strong cash generation and cash reserves exceeding operational requirements, it also declared a special dividend of 25c a share.
Operating costs for the financial year under review increased by 1.2% to R2-billion and efficiency gains and productivity improvements were insufficient to offset all underlying cost increases.
