Italtile, a leading Gauteng-based retailer and manufacturer of bathroom and home items owned by South African businessman Giovanni Ravazzotti, has revealed its financial results for the fiscal year 2024, displaying mixed results in a challenging operating climate.
The company’s revenue for the fiscal year ending June 30, 2024 was R9.06 billion ($509.1 million), a 0.79 percent decrease from the previous year’s R9.14 billion ($513.09 million).
The minor sales decline illustrates the company’s tenacity in the face of adverse economic conditions such as slow growth, high interest rates, inflation, and an oversupply in the tile production business. Italtile’s core brands—CTM, Italtile Retail, and TopT—showed continuous retail turnover during this time, highlighting the company’s market position.
However, Italtile faced bigger financial issues, with profits falling 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 reaffirmed the company’s commitment to maintaining its industry leadership through improved retail and production 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 told analysts.
Italtile, which is listed on the Johannesburg Stock Exchange and owns well-known brands such as Italtile Retail, CTM, TopT, and U-Light, is a leading indicator of South Africa’s consumer expenditure health. Giovanni Ravazzotti, who created the company in 1969 and owns a 33.9 percent interest, is still one of the country’s wealthiest people.
Despite these problems, Italtile’s total assets increased by 6.91 percent, from R9.77 billion ($551.5 million) on June 30, 2023 to R10.44 billion ($587.71 million) on June 30, 2024. The company’s retained earnings also increased, from R4 billion ($225.8 million) to R4.9 billion ($276.6 million), indicating adaptability in a challenging environment.
Looking ahead, Italtile plans to expand its footprint with new TopT stores, improve CTM’s performance, and increase online sales. While the near-term business climate continues challenging, the company’s strong brands, devoted personnel, and market-leading products position it well to handle these challenges and maintain its success in South Africa.
