Integrated Annual Report 2025

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Review of operations

Supply chain – manufacturers

Overview and performance matrix

CERAMIC INDUSTRIES

Nature of business

Manufacturer of tiles (South Africa and Australia) and bathroomware (South Africa).

Strategic positioning Target market
Preferred supplier of tiles and bathroomware in South Africa.
  • Retailers and wholesalers of fashionable and affordable tiles and bathroomware in South Africa, Australia and selected export markets.
South Africa Australia
Key performance indicators Trends 2025 Trends 2024 Trends 2025 Trends 2024
Sales down down down down
Production volumes down down down left right
Average selling price down down down down
Margins down down down down
Net profit down down down down
Closing inventory down down down left right
Key differentiators
  • Leader in design and fashion, creating desirable products.
  • Low-cost manufacturing ensures affordable products.
  • Local supply ensures an understanding of customer requirements and a short, reliable supply chain. This supports our 'always in stock' policy, with consistent supply of fashionable well-priced product.
  • Complementary products for bathroom and complete home-tiling solutions.
  • Ceramic's factories rank among the most energy efficient in the world. Ceramic's low-carbon footprint EcoTec tile range is recognised as a leader in the manufacture of ecologically-sensitive products.
TILE DIVISION
South Africa: Samca Wall (monoporosa wall tiles); Samca+ (hardbody rectified floor tiles); Pegasus (ceramic floor tiles); Vitro (extruded fully vitrified tiles); and Gryphon (glazed porcelain tiles).
Australia: Centaurus (A-glazed porcelain tiles).
2024/25 priorities Scorecard
  • Improve product quality and customer service to defend and grow market share. Quality improved to an all-time high with new product offering meeting customer specifications, however market share continued to decline due to predatory pricing and dumping in the local tile market.
 tick
  • Continue to improve efficiencies, including reducing waste across all factories, to mitigate against high input cost inflation and continued selling price deflation. Yields improved at every tile plant, with variable and fixed costs trending down. Reduced capacity utilisation and overhead recoveries reduced margin.
 tick
  • Improve productivity. Headcount reduction and improved machine availability improved productivity, but low market demand resulted in the shutdown of kilns.
 lr
  • Resolve the threat to PNG supply and safeguard business continuity. Gas supply is secured until 2028, with work being done to ensure an alternate gas supply and reduce demand for PNG.
 lr
  • Strengthen the sales and commercial team. New commercial manager and sales representatives were appointed, with more appointments being finalised.
 lr
2024/25 major achievements 2025/26 priorities and prospects
  • Reduced quality credits across the Group, to the lowest in CI's 50-year history.
  • Reduced variable cost of clay, glaze and packaging by double digits.
  • Successfully produced and launched new 0,5% water absorption, 9mm, true-sized 600x600 porcelain product from Gryphon.
  • Successfully produced and launched a new rectified, large format tile range from Vitro.
  • Successfully launched 7mm Samca+ product, which now contributes 20% of volume sales.
  • Increased the tile division average A-grade yield by >5%.
  • Reduced mining cost per bulk cube by 18%.
  • Install and commission a new polishing and rectification line at Gryphon.
  • Install and commission a new rectification line at Centaurus (Australia).
  • Strengthen the sales and commercial team.
  • Launch two new large-format rectified tile ranges from Vitro.
  • Continue to improve the quality of the product and the customer service to defend and grow market share.
  • Continue to improve efficiencies, including reducing waste across all factories, to mitigate against high input cost inflation and continued selling price deflation.
  • Improve productivity.
BATHROOMWARE DIVISION
Betta Sanitaryware (Betta) and Betta Baths.
Key performance indicators Trends 2025 Trends 2024
Sales down left right
Production volumes down down
Average selling price down down
Margins down down
Net profit down down
Closing inventory left right down
2024/25 priorities Scorecard
  • Improve products and customer service to defend and grow market share.
 tick
  • Improve efficiencies, including the reduction of waste and an increase in yields.
 tick
  • Drive cost rationalisation initiatives to recover margin.
 tick
  • Improve productivity.
 tick
2024/25 major achievements 2025/26 priorities and prospects
  • Installed and commissioned free-standing bath manufacturing capacity.
  • Reduced lead time of seamless and casted baths from eight weeks to two weeks.
  • Reduced lead times of one-piece baths from 15 weeks to four weeks.
  • Produced all-time record volumes out of Betta Sanitaryware.
  • Rolled throughput yield improved by 8% at Betta.
  • Betta productivity increased significantly, reducing lead times and delivered cost.
  • Successfully implemented VMI for Group stores, for sanitaryware and bath factories.
  • Ancillary components sourced from third parties, to be manufactured internally, reducing the manufacturing costs of free-standing baths.
  • Cross-training of the core Betta Baths team, to reduce overall headcount by 20% reducing fixed overheads.
  • Maintain lead times of free-standing baths at two weeks.
  • Develop and launch new super white glaze for vitreous sanitaryware.
  • Design, build and commission new demoulding drier to reduce demoulding and green scrap by >5%.
  • Produce and sell 3 000 more closed rim suits per month.
  • Continue to improve efficiencies, including reducing waste, to mitigate high input cost inflation.

Supply chain – manufacturers

Overview and performance matrix

EZEE TILE

Nature of business

Manufacturer of cement-based adhesives, grouts, gammazene and related products. Comprises nine manufacturing facilities in Johannesburg, Durban, Gqeberha, Cape Town, Bloemfontein, Mokopane, Mombasa, Lusaka and Harare.

Strategic positioning Target market
Africa's preferred tiling solutions. Industry leader in Africa.
  • Primarily the Group's retail networks: Italtile Retail, CTM and TopT, as well as select open-market customers including speciality tile retailers and big-box hardware stores.
     
Key performance indicators Trends 2025 Trends 2024
Sales down down
Average selling price down down
Margins down down
Net profit down down
Stock turn down down
Closing inventory down down
Key differentiators
  • High-quality product supported by extensive quality testing and product development.
  • A national footprint of manufacturing plants which underpins Ezee Tile's 'always in stock' policy with consistent supply of products.
  • Strong strategic partnerships with key raw material suppliers who provide access to latest technologies to improve quality while reducing costs.
  • Largest producer status affords economies of scale.
2024/25 priorities Scorecard
  • Realise efficiencies in the new Vulcania factory.
    • Vulcania operation has been stabilised and significant progress made on efficiency improvements.
 tick
  • Recruit critical skills and continue upskilling staff.
    • Recruitment of key skills – internal sales, procurement, warehouse, maintenance, technical, sales and finance – completed with upskilling and multiskilling of staff achieved. Further development and training needs remain.
 tick
  • Entrench core elements of Group culture into the business.
    • Ezee Tile has progressed well with the entrenchment of the Group culture into all branches as is evident from the improved discipline and improved housekeeping standards.
 tick
  • Complete the sand quarry purchase to secure long-term supply for the Vulcania factory.
    • Sand quarry purchase has been completed and sand supply secured. Operational efficiencies and profitability of the sand quarry will be the primary focus.
 tick
  • Complete integration into the Group's transport management service ("TMS") to improve on-time-in-full ("OTIF") deliveries and reduce costs.
    • Not only has TMS been successfully implemented across the entire SA group, but we have also started the 4PL transport optimisation system in Vulcania as well as implemented the VMS in Vulcania.
 tick
  • Capitalise on opportunities to continue to build market share in the specifications market and with independent/open-market customers.
    • Although the market conditions have been extremely challenging, some progress has been made in reacquisition of the lost independent market share. Significant progress still to be made.
 tick
2024/25 major achievements 2025/26 priorities and prospects
  • Completed Vulcania factory commissioning, stabilised production and completed major upgrades on adhesive production line.
  • Improved process efficiency and supply stability throughout the Group.
  • Completed regional factory renovations and upgrades.
  • Achieved significant improvement in Group profitability.
  • Implemented WMS in Vulcania and VMS driven from Vulcania to improve stock turn and stock holding in branches.
  • Achieve Group HSE targets with DIFR below 1.
  • Complete Mokopane new factory project as well as Durban renovation and expansion project.
  • Focus on operational efficiencies and profitability of sand quarry.
  • Continue entrenchment of Group culture, improvement in housekeeping, efficiencies and general factory improvements.
  • Complete cost-reduction programme to yield savings and improve profitability.
  • Grow Ezee Tile market share through growth in independent and construction markets, as well as optimising sales in integrated Group stores.
  • Roll out WMS to all branches.
  • Continue to build strong and highly efficient teams in all branches.
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ITALTILE LIMITED Integrated Annual Report 2025

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