Table of Contents
Key Points
- Giovanni Ravazzotti’s Italtile stake has dropped by $83.47 million as the company’s shares slide amid weak consumer spending and rising crime.
- Italtile stock falls 16.94% over the past eight weeks, dragging market cap below $725 million and raising concerns over profitability.
- Ravazzotti's fortune has decreased by $83.47 million since February, yet he remains influential in South Africa's retail and manufacturing sectors.
South African businessman Giovanni Ravazzotti, founder and chairman of Italtile Limited, has seen the value of his stake in the bathroom and home products retailer drop by $83 million as the company’s shares continue to slide on the Johannesburg Stock Exchange (JSE).
Ravazzotti, who owns 56.46 percent of Italtile, has watched his holdings lose R1.57 billion ($83.47 million) over the past eight weeks, bringing their total market value below $410 million. The sell-off comes as the company faces economic headwinds, weaker consumer spending, and operational disruptions tied to rising crime rates in South Africa.
This latest slump adds to earlier losses. Between Jan. 15 and Feb. 6, the value of Ravazzotti’s stake fell by $31.99 million, dropping from R9.85 billion ($527.77 million) to R9.25 billion ($495.78 million). Investors are growing more concerned about Italtile’s profitability, store closures, and long-term growth prospects, keeping pressure on its stock.
Italtile stock falls 16.94% in weeks, amid security, business challenges
Italtile Limited, founded by Giovanni Ravazzotti in 1969, has grown into a major player in South Africa’s home and construction sector. With brands like Italtile Retail, CTM, TopT, and U-Light, the company has built a strong presence in the market, guided by Ravazzotti’s leadership.
But rising crime in South Africa is putting pressure on the business. The Gauteng-based retailer and manufacturer of bathroom and home products has been forced to close some stores due to security concerns, pushing up operating costs and disrupting operations. In some cases, Italtile has had no choice but to relocate or shut down stores in high-risk areas to ensure the safety of customers and staff.
Investors are feeling the impact. The company’s stock has taken a hit, sliding 16.94% over the past eight weeks. Shares fell from R12.4 ($0.66046) on Feb. 6 to R10.3 ($0.5486), dragging Italtile’s market capitalization below $725 million. The decline has wiped out a significant chunk of shareholder value, raising concerns about how the company will navigate these ongoing challenges.
Ravazzotti’s stake drops $83.47 million
The sharp double-digit percent drop in Italtile’s share price has wiped R1.57 billion ($83.47 million) off Gianni Ravazzotti’s stake over the past eight weeks, bringing its value down from R9.25 billion ($492.86 million) on Feb. 6 to R7.69 billion ($409.39 million) at the time of writing.
Despite the decline, Ravazzotti remains a key player in South Africa’s retail and manufacturing sector. While his fortune has taken a hit—losing $83.47 million in just two months—his influence in the industry and Italtile’s standing in the market remain strong.
Your Money, Your Life
Italtile’s shares have fallen 27.16 percent since the start of the year, raising concerns among investors. Yet, the company continues to rank among the most valuable stocks on the JSE. A $100,000 investment in January would now be worth $72,840, marking a $27,160 loss.
