COST-CUTTING PLANS
Italtile cements 15% rise in net profit
Cost cutting will not affect the company’s expansion plans in SA, says chief financial officer Brandon Wood
Italtile says it expects the second half of its financial year to be tougher than the first and will introduce a number of initiatives to cut costs. But management said that would not mean it would stop investing in or opening new stores across SA. Chief financial officer Brandon Wood said about five would be opened in the coming months after 11 were opened in the six months to end-December 2016. "Our primary focus will be on reducing operating costs and improving efficiencies. There is a lot more we can do in scheduling manpower to make that happen. However, we will continue to optimise the business, but this is a big driver of costs," Wood said. In the six months to December, the tile and sanitary-ware retailer and franchiser reported a 15% rise in net profit to R494m. The group, whose brands include Italtile Retail, CTM and TopT, grew its total turnover 14% to R3.50bn. Headline earnings per share were up 7% to 46.6c and its dividend increased 14% to 16c per share. Italtile said t...
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