Review of operations

SUPPLY CHAIN IMPORTERS
OVERVIEW AND PERFORMANCE MATRIX

DISTRIBUTION CENTRE

International Tap Distributors (“ITD”)

Nature of business

Importer and distributor of brassware and accessories.

Strategic positioning	Target market
Experience water′s inspiration.	Italtile Retail, CTM and TopT store networks.

Average selling price
Key performance indicators	Trends 2024	Trends 2023
Sales
Margins
Net profit
Stock turn
Closing inventory

Key differentiators

Key component of the Group′s vertically integrated supply chain.
Long-standing relationships with international suppliers and extensive import experience.
Efficient, state-of-the-art robotic warehouse facility.
Leading product quality including the Tivoli range, the only major Italian manufactured brassware brand available in South Africa.

2023/24 priorities	Scorecard
Grow sales volumes through market share gains, to offset constrained consumer spend. Sales to Italtile and TopT improved, but declined at CTM – symptomatic of restricted disposable income among middle income consumers.
Grow sales in the commercial projects segment to achieve meaningful and sustainable turnover improvement.
Capitalise on stable supply lead-times to drive improvement in retail stock turn.
Manage margins in the context of volatile local currency and cost inflation.

2023/24 major achievements

2024/25 priorities and prospects

Improved the stock turn in ITD and the system-wide retail network.
Maintained margins despite the impact of a weaker local currency.
Grew profitability due to improved overhead cost containment measures and enhanced working capital management, which increased finance income.

Sales volume growth through gains in market share is imperative in the context of continued constrained consumer spending and subdued investment sentiment.
Leverage progress made in the commercial projects segment in 2023 – 2024 to continue to deliver sustainable turnover growth.
Maintain pricing, but drive improvement in margin through enhanced procurement efficiencies and effectiveness.
Focus on improved productivity and intensified cost-containment measures to achieve profit growth targets.
Drive improvement in stock turns in ITD and system-wide through ongoing improvement of inventory management.

Cedar Point

Nature of business

Importer and distributor of laminate and vinyl flooring, bathroom furniture, shower enclosures, sanitaryware, décor and other home-finishing products.

Strategic positioning	Target market
Where service is the point. Ensure competitiveness of the Group′s retail stores by consistently supplying quality, fashionable home-improvement products at attractive prices.	Italtile Retail, CTM and TopT store networks.

Average selling price
Key performance indicators	Trends 2024	Trends 2023
Sales
Margins
Net profit
Stock turn
Closing inventory

Key differentiators

An integral component of the Group′s supply chain across merchandise categories.
Strong relationships with international and local stakeholders.
Buying power derived from Group volumes and common-site synergies.
Efficient warehousing and consolidated deliveries.

2023/24 priorities	Scorecard
Grow sales. Volumes were flat on the prior year, reflecting weaker consumer demand.
Revise product merchandise categories and introduce new fashion. Ranges were rationalised and better alignment was achieved with the stores to phase in current fashion and phase out unfashionable product.
Improve stock turns and reduce inventory. Ongoing global supply chain uncertainty affected the inventory landing timeline; some shipments arrived earlier than anticipated, leading to an over-stock situation.
Improve visibility of all imported stock from manufacture to the customer.	Ongoing

2023/24 major achievements	2024/25 priorities and prospects
Improved efficiencies in the destuffing process resulted in cost savings. Range rationalisation with the retail brands enabled us to bring in new fashionable product quicker. Substantially reduced slow-moving stock.	Grow sales volumes through the store network. Improve stock turns and reduce system-wide inventory. Continue to enhance stock demand forecasting and planning with the retail network. Improve productivity in the distribution operation to pass on better pricing to the stores. Rationalise range and further reduce slow-moving stock.

Distribution Centre (“DC”)

Nature of business

Procures stock for the Group and is one of the largest importers of tiles in South Africa.

Provides warehousing, distribution and logistics services to the Group.

Target market

The Group′s retail store networks and integrated suppliers.

Average selling price
Key performance indicators	Trends 2024	Trends 2023
Sales
Margins
Net profit
Stock turn
Closing inventory

Key differentiators

Long-standing relationships with international suppliers and transport agents.
Extensive multi-decade import experience.
Bulk warehousing and efficient operations integrated into the Group′s TMS.
Strong financial position facilitates optimal investment in inventory.

2023/24 priorities	Scorecard
Continue to improve sales through the stores by procuring fashionable product at attractive prices.
Improve OTIF and retail in-stocks.
Further improve the average vehicle utilisation rate on the TMS.

2023/24 major achievements	2024/25 priorities and prospects
Maintained margins by managing product price ladders and procuring more fashionable ranges. Grew net profit, notwithstanding the difficult trading environment. Improved inventory management, including reducing slow‑moving stock.	Continue to focus on improving stock turn. Maintain the in-stock position for CTM and Italtile Retail. Continue to achieve savings on freight costs. Capitalise on opportunities to achieve continuous improvements in productivity and efficiency.

Review of operations

SUPPLY CHAIN IMPORTERS OVERVIEW AND PERFORMANCE MATRIX

International Tap Distributors (“ITD”)

Cedar Point

Distribution Centre (“DC”)

SUPPLY CHAIN IMPORTERS
OVERVIEW AND PERFORMANCE MATRIX