Steinhoff International Holdings N.V. in liquidatie
Steinhoff International Holdings N.V. : Steinhoff reports solid results amidst volatile market conditions
DGAP-News: Steinhoff International Holdings N.V. / Key word(s): Half Year Results Media Release 7 June 2017 Steinhoff reports solid results amidst volatile market conditions
Commenting on the results, Markus Jooste, CEO of Steinhoff, said: “This solid revenue and margin performance underscores the resilient model of the group. This has been further underpinned by both our product and geographical diversification in what remains a resilient discount market. The strong leadership and execution from our operationally focussed management teams also continues to deliver good growth.” In addition, during the period under review the group was focussed on the implementation and bedding down of recent strategic acquisitions. This included the repositioning phase of Mattress Firm subsequent to the rebranding of approximately 1 400 Sleepy’s and Sleep Train stores. Mattress Firm reported revenue of EUR1.5 billion for the period under review, and reported an adjusted operating margin of 4.5% after adjusting for once-off EUR48 million rebranding costs. During the period under review Steinhoff announced a new strategic partnership with Serta Simmons, the largest manufacturer of mattresses in the United States. Steinhoff also announced the acquisition of Sherwood Bedding, an existing supplier of private label products to Mattress Firm. The acquisitions of Poundland in the UK and Fantastic Furniture in Australia are outperforming expectations, with Poundland recording positive like-for-like growth for the first time since December 2014. Overall, the integrated household goods segment increased revenue by 39% to EUR6.3 billion for the period under review. Despite flat organic revenue in constant currency (excluding the acquisition of Mattress Firm), adjusted retail margin increased by 30 bps to 7.1% after adjusting for once-off costs of EUR20 million relating to kika-Leiner refurbishment costs and EUR5 million African restructuring costs. Although Conforama’s underlying operations reported revenue declining by 1.5%, margin increased by 60bps on the back of growth in higher margin products and supply chain efficiencies. In the European Retail Management (ERM) business revenue grew by 13% to EUR1.3 billion, where Poco continues to outperform the market in Germany while kika-Leiner, which was consolidated for only 4 months in the comparative period, reported stable like-for-like growth. Margins in the UK operations showed a 60bps increase despite a decline in revenue, related to a 14% devaluation of the Pound, a challenging post-Brexit environment and store closures. In Australia revenue increased by 64% driven by the acquisition of Fantastic Furniture. The African business increased its total revenue by 25% to EUR522 million, impacted by a 14% strengthening of the Rand, store closures and the inclusion of Iliad for only 3 months in the comparative period. On a like-for-like basis, African revenue increased by 4%, a strong performance despite a challenging trading environment. The momentum in the general merchandise retail segment continued with another excellent set of results for the first six months with revenue growth of 79% to EUR3.2 billion. Excluding Poundland, the business increased revenue by 19% on a constant currency basis. In Europe, revenue excluding Poundland increased by 58% to EUR490 million and constant currency revenue increased by 60%, supported by strong like-for-like growth of more than 20% and new store roll outs. In Africa, momentum in Pepkor’s discount and value retail concepts continued to record strong results, with revenue growing by 25% to EUR1.4 billion despite weaker consumer markets. On a constant currency basis revenue increased by 10% with solid like-for-like revenue growth of 8%. This underscores the resilience of Pepkor’s defensive business model as double-digit sales and operating profit growth were achieved for the 18th consecutive year. The automotive retail division in southern Africa reported good results, despite the continued decline in new car sales and commercial vehicle sales with revenue growth of 19% to EUR702 million, while revenue in constant currency increased by 5%. “Based on the group’s performance during the interim period, we remain confident that the momentum in the business will continue and that the group will perform in line with expectations,” concluded Jooste. Additional information Additional information and the half-year financial report are available in English via the following link: www.steinhoffinternational.com. If you would like to attend the webcast for analysts and investors at 3:00 pm CEST, please use the following link: http://services.choruscall.eu/links/steinhoff170607.html Media contact Reina de Waal Phone: +27 21 808 0711 About Steinhoff International Holdings N.V. Steinhoff is the world’s third largest integrated household goods retailer by turnover, according to Möbelmarkt 2017, with 50 brands and 12 000 retail stores in more than 30 countries. Steinhoff retails, sources and manufactures household goods and general merchandise in Europe, the United Kingdom, the United States of America, Australasia and Africa. Retail operations are positioned towards price conscious (value) consumer segments, providing everyday products at affordable prices and serving customers at their convenience. Our integrated retail divisions comprise: – Household goods (furniture and homeware retail businesses) – General merchandise focusing on clothing and footwear, accessories and homeware; and – Automotive dealerships in South Africa which provide a broad range of new and pre-owned vehicles, parts, insurance, accessories and servicing. In addition, Hertz car rental outlets are included in this segment Steinhoff employs approximately 130 000 employees and has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the Johannesburg Stock Exchange with a current market capitalisation of approximately EUR21 billion.
07.06.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Steinhoff International Holdings N.V. |
Herengracht 466 | |
1017 CA Amsterdam | |
Netherlands | |
Phone: | +27218080700 |
Fax: | +27218080800 |
E-mail: | investors@steinhoffinternational.com |
Internet: | www.steinhoffinternational.com |
ISIN: | NL0011375019 |
WKN: | A14XB9 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |