Italtile cuts dividend by 16% as it warns competitors are getting more 'aggressive'

SA's biggest bathroom tile retailer, Italtile has slashed its interim dividend after contending with a tough consumer environment, the end of a home improvement boom, as well as new entrants who are looking for market share.

The owner of CTM, Italtile Retail and TopT, warned shareholders on Monday that margin pressure could intensify in the months ahead as new manufacturing entrants "increasingly resort to aggressive pricing".

It reported that trading profit came in 17% lower at R1.1 billion for the six months to end-December, when turnover fell 2% to R6.1 billion. Lower sales volumes in its retail stores were only partially offset by average price inflation of 2.6%, and it cut its interim dividend by almost 16% to 27c per share.