Africa In The News International

Steinhoff International hikes sales 48%, led by European and African regions

JOHANNESBURG, August 31 – Luxury goods retailer Steinhoff International pointed to organic revenue as it continued to see good sales momentum for the nine months ended 30 June 2017.

Group sales increased by 48 percent to €14.9 billion for the nine months ended 30 June 2017, compared to the nine months ending 30 June 2016.

During the nine months under review, the group generated 52 percent (€7.7 billion) of sales in Europe, 27 percent (€4 billion) in Africa, 15 percent (€2.2 billion) in the United States of America and six percent (€1 billion) in Australasia.

Organic revenue, excluding acquisitions, increased by eight percent, led by good growth in the European and African regions.

Steinhoff chief executive, Markus Jooste, said they were pleased by this performance.

“We are pleased to report that the group’s organic sales momentum, as well as the integration and sales development of the acquired businesses are progressing well,” Jooste said.

“Once again, the group’s sales growth is underscored by the resilience of the low-price, value and discount market segments in challenging consumer environments, as well as the diversity of the group’s sales mix across various geographies.”

Despite a challenging consumer environment in South Africa, Steinhoff said good like-for-like sales figures were recorded by all group retailers, contributing to the generation of €4 billion revenue in the African region.

In the United States, the Mattress Firm acquisition became unconditional in September 2016 and was part of the group for the entire nine months under review.

Steinhoff said the separate listing of the Steinhoff Africa Retail assets (STAR) on the JSE Limited next month would create a diversified listed retail company of significant size and scale with its roots in Africa.

STAR will house all Steinhoff’s African retail assets, excluding the automotive division.

On the outlook, Steinhoff said the European household goods segment remained on track to deliver good operating profit growth for the twelve months ending 30 September while the furniture retail market in the UK was expected to remain challenging.

The European and African general merchandise segments are expected to continue its current growth trajectory.

– African News Agency (ANA)

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