Italtile manufacturing division counts festive season losses on Eskom power cuts

Italtile felt the impact of Eskom’s load shedding during the festive season as the power cuts disrupted business and dented profits in the six months to the end of December. Supplied
JOHANNESBURG – Italtile felt the impact of Eskom’s load shedding during the festive season as the power cuts disrupted business and dented profits in the six months to the end of December.

Italtile’s chief executive, Jan Potgieter, said yesterday that the group’s manufacturing division was hit hard when Eskom implemented Stage 6 load shedding.

“The two days in December where we went up to Stage 6 were the most severe for the business, affecting its sales.

“In those two days, only the direct cost to the company was about R4.5m. It also meant that we had to spend on diesel as well as on unplanned maintenance,” Potgieter said.

The manufacturing division’s total sales, consisting of Ceramic Industries and Ezee Tile, increased by 1.3percent, with an estimated average selling price inflation of 1percent in the division.

Source: iol.co.za