Italtile CEO on how the business is responding to COVID-19 shocks
Despite the dim outlook for many companies during COVID-19, bathroom supply group Italtile is optimistic that pent up demand for goods will increase early next year. It has declared a reduced full year dividend and reported a headline earnings decrease of 22 per cent. Italtile CEO, Jan Potgieter joins CNBC Africa for more.
Tue, 25 Aug 2020 11:49:00 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Market response to Italtile's resilience and strategic approach has been positive, with shares up 6.3% despite a 22% decrease in headline earnings and reduced dividend.
- Italtile's robust business model, integrated supply chain, world-class manufacturing, and culture of partnership have been instrumental in navigating the crisis and positioning the company for growth.
- The company's strategic focus on partnerships, Africa expansion, and dividend restoration underscores its commitment to long-term sustainability and shareholder value.
Italtile, a leading bathroom supply group, remains optimistic amidst the challenges posed by the COVID-19 pandemic. Despite reporting a 22% decrease in headline earnings and a reduced full-year dividend, the company's CEO Jan Potgieter is confident in the business's ability to bounce back. The market has responded positively to Italtile's resilience and strategic approach, with the company's shares seeing a 6.3% increase. Potgieter attributes this market confidence to the company's robust business model, integrated supply chain, world-class manufacturing, powerful retail brands, innovative technology, and a culture of partnership. He emphasizes that these factors have enabled Italtile to navigate the crisis and position itself for growth. Potgieter points to the strong cash position the company has ended the year with, highlighting the successful management of dividends, capital expenditures, and taxes amidst the challenging economic environment. Moreover, Italtile has leveraged partnerships to enhance visibility into its operations and improve value delivery for customers. By shifting towards a joint venture partnership model, the company aims to better align its product offerings with customer needs and preferences. Additionally, Italtile's strategic focus on Africa, particularly in Botswana, Kenya, and East Africa, reflects its commitment to expansion and growth in key markets. Potgieter acknowledges the potential in East Africa as a growth opportunity and reveals plans for further expansion in the region. Looking ahead, Italtile remains focused on restoring its dividend to pre-COVID-19 levels. Despite the temporary downturn, the company aims to maintain its dividend cover ratio of two and a half and reward shareholders as the business regains momentum and market share. With a strong emphasis on market positioning, operational efficiency, and strategic partnerships, Italtile is poised to weather the current storm and emerge stronger in the post-pandemic landscape.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
