Integrated Annual Report
2025
Strategic clarity is key to the Group's goal to deliver sustainable value for all stakeholders.
The Group's five-year strategy is developed and implemented through an effective decision-making framework and is reviewed annually in terms of its relevance to evolving external and internal conditions. The Board is responsible for setting clear strategic direction, while management is held accountable for delivering measurable results.
Imperative
Grow sales volumes and
improve manufacturing efficiency
Tile volumes sold through our retail network improved, however, sales volumes at Ceramic decreased.
Reduction of variable costs within the manufacturing division.
Cost leadership and
productivity improvements
Various cost leadership and productivity initiatives showed improvements, however, targets were
not achieved.
Imperative
Maintain investment in our
strong brands and new
product development
Procurement of equipment to expand range offering from Gryphon underway and rectifying line at Vitro successfully commissioned.
Introduced new products across several merchandise categories.
Our priority is to remain market leaders in product range, as well as improve marketing initiatives to ensure customers are aware of our value and fashion offering.
Launched CTM's pivotal customer satisfaction programme, CTM Xperience, to further enable and inspire employees to deliver exceptional customer service.
Imperative
Introduce outcomes-based
training programmes that are
better aligned to meet the
Group's personnel requirements
and enhance the state of
readiness of candidates to fulfil
successful leadership roles
Our store operator programmes for each brand continue to improve their effectiveness in developing future leaders.
Further investment resulted in good progress in improving the competence and strength of our human capital support function to facilitate our growth targets.
Instil high-performance culture
Entrenched culture of setting, measuring and performance monitoring of KPIs.
Leadership effectiveness
Good progress made on rebuild of management teams at Ceramic.
Optimise employee engagement
The engagement score improved, remaining at a high level. We are satisfied given the prevailing
low levels of confidence in the country at present and the Group's weaker results.
Imperative
Grow the contribution of the
webstores and ensure that Italtile
remains at the forefront of
technological innovation for the
benefit of customers
Pleasing growth in online sales supported by development of omnichannel model and leading webstore experiences.
Significant progress in increasing quantity and quality of content.
Adapted digital experience to improve content for mobile devices, incorporating AI to improve quality of imaging and customer search.
Imperative
Expand retail footprint and
close non-performing stores
Four stores closed and six stores opened during the year.
Expand manufacturing footprint
Unlikely given the oversupply in the market.
Explore new international
geographies
On hold until investment conditions improve in global markets, and core South African operations improve.
Imperative
Migrate to electricity
generated by renewables
Increase of 10,8% in the use of solar generated electricity in the year, with self-generation of 8,9 MW for the year. Energy wheeling opportunities are being explored.
Alternative gas supply
Immediate threat to natural gas supply has been delayed following Sasol's announcement of extended supply to June 2028.
We continue to monitor and will review the trial project using a coal-fired HAG in 2026.
We continue to monitor and will review the previously approved project to invest in and convert a production line to use a coal-based synthetic gas solution and to test this technology in our process.
Imperative
Investigate acquisitions of
businesses with complementary
products which have
attractive returns on capital
No suitable acquisition targets were identified in the year under review and it is unlikely that the Group will actively pursue this imperative in the short to medium term.
