Passion for peak proficiency | Results | An energised operational foundation | Franchising
African and international operations | Cementing our passion for the future | Prospects | Appreciation
 
The Italtile Group has consolidated its position as the largest retailer of tiles ,
bathroomware and ancillary products such as taps and cutters during the past year.
 
Passion for peak proficiency
The ability of the Italtile Limited Group to sustain a persistent growth pattern over 15 consecutive years underlines its faith in the future and its accurate reading of the capacity of the market for its products. Italtile has, as ever, operated with peak proficiency. The foundation for this ongoing success has been the vision to have a company that is visibly energetic in the market on the one hand, and that has a passion for the future on the other.

For the first time, the past year saw the Group’s system-wide turnover exceed the R2 billion mark, rising from R1,95 billion in the last financial year to R2,25 billion, a percentage increase of 15%. Although the growth of 15% was more modest than the previous year, it occurred despite only one additional CTM store being opened during the year – a contrast to previous years when the opening of several shops had an effective increase on yields. A number of new outlets will be opened in the 2007 financial year.

The Group has continued to focus through its two brands, Italtile and CTM, on becoming a fashion retailer of ceramic tiles and related products, such as bathroomware, taps, and a relative newcomer, laminated flooring. Both Italtile and CTM cater for a wide spectrum of consumers who demand affordable, value-for-money products to meet their specific lifestyle, whether they live in upmarket residences or in starter homes.

The favourable results of the past year have been achieved in the face of increasing competition. As the market has seen the demand increase for ceramic tiles, so more entrepreneurs have seen a gap to open up a business in this field. Italtile has always welcomed competition, and we have no doubt that the emergence of these new suppliers will result in even keener competition which can only be good for the future of the market. However, the past year has been relatively easy for newcomers to the market since interest rates have been low and the Rand strong. With indications that rates are starting to increase, and the Rand again somewhat volatile – triggered further by big increases in energy prices – Italtile’s stability and strength will enable it to keep a tight rein on price increases in the short-term, while ensuring a steady supply in the long-term. Both these competitive advantages enjoyed by the Group will benefit the consumer.

Italtile’ passion for the future has led to a consolidation and re-energising of our strategies to ensure that the Group’s offering remains at the forefront of providing the most contemporary, fashionable and best product worldwide. We achieve this by having a sustained supply of local product, and by drawing on relationships established over decades of operation to import from countries that have a reputation for supplying outstanding product in our industry, namely Italy, Spain and Brazil. Excellent product is now also sourced from China, Turkey, Thailand and Australia.