Steinhoff profit surges on Conforama buy

Steinhoff profit surges on Conforama buy

2012-03-06 14:56

Johannesburg - South Africa’s biggest furniture maker Steinhoff International Holdings [JSE:SHF] reported A 48% jump in first-half profit, helped by acquisitions and favourable currency swings.
Steinhoff, whose extensive operations in Europe makes it one of the biggest furniture retailers on that continent, said headline earnings per share totalled 166.5 cents in the six months to end-December, compared with 112.8c a year earlier.

The company’s results were boosted by the inclusion of earnings from French retailer Conforama, which it bought last year for $1.6bn.
Sales more than doubled to R37.6bn.

Steinhoff is on a restructuring drive aimed at creating three separate listed businesses focused on selling furniture in Europe, emerging markets and manufacturing.

The company wants to list its European business, which includes Conforama as well as the Sleepmasters brands and Britain’s Harveys.

It also wants to buy control of South African retailer JD Group through a share-swap deal that would reduce its holding in domestic manufacturing firm Kap International from about 88% to 62%.