Steinhoff increases revenue to R117bn | Fin24
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Steinhoff increases revenue to R117bn

Sep 10 2014 15:19
Johannesburg - Steinhoff International Holdings [JSE:SHF], aims to turnaround troubled JD Group, after posting a 20% revenue jump for the year, CEO Markus Jooste told Fin24.

He spoke to Fin24 in a video interview on Tuesday after the release of the group's results for the year ended June 2014.

Steinhoff, which is the world's second-biggest furniture retailer, increased revenue to R117bn from R97.9bn, with cash generated from operations up 68% to R21bn.

Diluted headline earnings per share improved by 27% to 416.7 cents, compared with 323.3c in the previous year.

The board also declared a cash dividend from retained earnings of 150 cps.

"We are very pleased to be able to pay a R1.50 cents dividend, up from 80 cents last year," said Jooste.

He said the vertical, integrated retailer has been transformed from what it was 18 years ago and is preparing for the upcoming listing in Frankfurt.

"We continue to grow our retail footprint throughout Europe and Eastern Europe on a very aggressive basis."

"This year we continued our investment in our property portfolio throughout the world and most notably Europe". He added that the group's retail operations increased profits by 51%.

Jooste said JD Group, which Steinhoff lifted its stake in from 55% to 86%, experienced a tough time.

JD Group [JSE:JDG] posted a massive annual loss of R1.923bn compared with a profit of R632m reported in the previous comparable period.

"JD Group went through a very difficult time because the consumer in South Africa is under pressure."

However, he added that Steinhoff is assisting JD Group on a daily full-time basis.

"The new management ... is now in full control and they have already taken huge steps towards refocusing the company for the future."

Watch: Steinhoff confident about the future

Jooste is optimistic about the year ahead.

"We look forward to the new year, with lots of exciting developments in France, in Germany, and in all the territories of the world where we operate".

He said it also aims to turnaround JD Group to become a household goods retailer and to provide consumers with credit in South Africa.

 - Fin24



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