Steinhoff ups earnings

Johannesburg - Household goods company Steinhoff International Holdings [JSE:SHF] on Tuesday reported diluted headline earnings per ordinary share of 226.7 cents for the year ended June, up 1% from the previous year's 225.5c.

A distribution of 65c/share was declared from 63c in 2010.

Revenue increased 21% to R43.04bn and operating profit before capital items was up 12% to R5.42bn.

The group said that the year under review had been transformational.

In March this year, Steinhoff Europe acquired the retailer Conforama and Steinhoff Africa concluded the sale of its African retail assets, resulting in JD Group [JSE:JDG] becoming an associate company of Steinhoff.

The company said that in sharp contrast to the economic woes of some European countries, the economies and consumer confidence in Central Europe showed strong resilience which supported its growth in the market.

"In line with the trend experienced globally, the mass market discount segment continues to gain market share at the expense of the middle to upper market segments. This trend continues to benefit our retail operations in continental Europe," it said.

Steinhoff said Conforama had performed well and increased both sales and operating margin, seen against the comparative period. But the group stressed that economic conditions in the UK remained uncertain, especially with regard to discretionary goods. However, the first months of trading in the 2012 financial year already "showed an improved performance".

The company's Australian and New Zealand operations experienced challenging trading conditions.