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Pepkor, discount retail boost Steinhoff coffers

Sep 08 2015 18:41
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The new data showed that Nigeria's economy grew $453bn in 2012 and expects a jump to $509bn for 2013. (Shutterstock)

Company Data

Steinhoff International Holdings NV [JSE:SNH]

Last traded 1
Change 0
% Change 0
Cumulative volume 5942576
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Cape Town - Steinhoff International's [JSE:SHF] share price jumped 3.84% to R81.20 on Tuesday after the integrated discount retailer posted a 36% increase in headline earnings from continuing operations to R12.4bn.

The group said it regards its operational performance for the financial year to June 30 2015 as excellent across all business segments despite challenges and volatility in the global consumer market.  

The group, which increased revenue from continuing operations by 15% to R135bn, declared a dividend of R1.65 per share - an increase of 10% on the previous year.

“Operationally, we’re extremely pleased with our performance, which is primarily supported by a growing discount retail environment. Our ongoing focus on efficiencies and cost savings resulted in improved margins,” said Markus Jooste, CEO of Steinhoff.

During the financial year Steinhoff achieved 100% ownership in JD Group, which was delisted from the JSE. Shareholders also approved Steinhoff's listing  on the Frankfurt Stock Exchange.

The acquisition of 100% of the Pepkor group expanded Steinhoff’s retail exposure to the growing discount market in Africa, Europe and Southeast Asia.

According to Jooste the Pepkor business features a complementary discount retail footprint to that of Steinhoff and presents an opportunity to leverage Steinhoff’s experience in European markets. In addition, the group expects to benefit from the profitable expansion of the Pepkor business model within Steinhoff’s existing discount formats.

READ: Steinhoff transaction dominates JSE

Steinhoff also diversified its funding profile during the financial year with its first Schuldschein transaction in Europe. 

The Schuldschein deal attracted more than 80 investors raising €650m with maturities of five to ten years, Steinhoff said. Subsequent to the June 30 2015 year-end, further notes were issued, increasing the amount raised to €730m.

On July 30 Steinhoff also raised €1.1bn through the launch of a convertible bond at a 35% conversion premium to the Steinhoff share price.

The majority of Steinhoff’s revenues were achieved from Steinhoff’s Household goods operations worldwide (including Europe and Africa) and these accounted for 78% of total revenues. 

Dollar strength had a positive impact on the competitiveness of Steinhoff’s European manufacturing operations.

The group continued its investment in its property portfolio during the year and Steinhoff acquired two large stores in Portugal from a key competitor in the area, to support the rapid growth experienced in Spain and Portugal.

ALSO READ: Brait to sell R15.6bn Steinhoff stake

pepkor  |  steinhoff international  |  jd group  |  retail
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