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Italtile expects a subdued economic environment to limit growth in the short term, with consumers continuing to delay discretionary spending on home improvements despite signs of stability in the retail market.
The home-improvement group, which owns brands including CTM, Italtile Retail and TopT, said on Tuesday that the economy delivered modest, steady growth during the year to June, but household spending remained constrained by rising costs and weak consumer demand.
Italtile said geopolitical tensions had recently pushed up fuel and transport costs, while also constraining construction investment and household discretionary spending. Intense competition and excess supply, particularly in the tile market, have added further pressure.
“The current macro environment does not support rapid topline growth,” the group said. Instead, the company pointed to efficiency, cost competitiveness and strengthening its market position as the main drivers of future growth.
The warning came as Italtile reported broadly stable retail trading during the year, suggesting that consumers are still active but highly selective about where they spend.
System-wide turnover across CTM, Italtile Retail and TopT was stable compared with the previous year. Italtile Retail delivered improved sales and volumes, while TopT recorded modest sales growth. CTM was broadly stable, though its second-half performance was slightly weaker.
Italtile said its manufacturing operations are under pressure as global overcapacity and the continued dumping of cheaper tiles into South Africa have contributed to price deflation, while higher energy, transport, fuel and municipal costs have squeezed margins.
The International Trade Administration Commission’s provisional anti-dumping duties on ceramic and porcelain wall and floor tiles, announced in July, could provide some relief to local manufacturers by addressing what Italtile described as an imbalance between excess supply and weak demand.
Italtile expects headline earnings per share for the year ended June 2026 to decline between 7.5% and 12.4%, to between 109.5c and 115.7c, from 125.1c previously. Earnings per share are expected to fall between 7.7% and 12.7%.
TimesLIVE
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