Steinhoff reports double-digit revenue growth
Boost from Europe
Steinhoff's shares have fallen by more than 90% over the past year.
Karl Gernetzky - Debt-laden Steinhoff International, whose interests include discount retailers Pepkor and Pepco, and Mattress firm in the US, has reported a double-digit climb in revenue for its quarter to end-December.
It has benefitted from tough conditions and a growing store base in Europe, where rampant inflation is pushing consumers to cheaper clothing.
Group revenue rose 14% to €3.2 billion (R62 billion) in the three months to end-December, Steinhoff's first quarter, driven by a 22% climb in the revenue from pan-European discount retailer Pepco, which accounted for about half of its total revenue.
Pepco, the owner of the discount Pepco and Dealz brands in mainland Europe and Poundland in the UK, had reported record trade over the festive period, saying in January that gained amid its ongoing store rollout, its status as a discount retailer in tough economic conditions, as well as a healthy stock position.
Pepkor, the owner of Pep and Incredible Connection, among other brands, grew revenue by only 4% in euro-terms, amid a weaker rand, but also unprecedented load shedding in SA, along with a sub-optimal merchandise mix at Ackermans.
Pepkor
Pepkor is Africa's largest retailer by store-footprint, operating 5 900 stores in ten African countries, while also operating in Brazil.
Pepkor had said in January the number of lost hours from load shedding had tripled in the three months to end-December, but its discount fashion model was still holding up well, and its market share was higher than it was before Covid-19.
Earlier in February, Steinhoff sold R4.9 billion worth of Pepkor shares, bringing its shareholding down to 43.8% from 51%, while in January, it sold about R5.8 billion worth of Pepco, taking its stake to 73.2%, from 78.9%.
Steinhoff, valued at about R1.2 billion on the JSE, last reported a €10.2 billion (R191 billion) debt pile, and announced in December that it had reached a deal with its largest creditors, which could see it holding 80% of the company.
Shareholders, who would retain 20%, are expected to vote on this on 22 March, and approval would mean the company would then delist.
Steinhoff's shares were trading 3.33% lower at 29c on Friday morning, having fallen by more than 90% over the past year. – Fin24
It has benefitted from tough conditions and a growing store base in Europe, where rampant inflation is pushing consumers to cheaper clothing.
Group revenue rose 14% to €3.2 billion (R62 billion) in the three months to end-December, Steinhoff's first quarter, driven by a 22% climb in the revenue from pan-European discount retailer Pepco, which accounted for about half of its total revenue.
Pepco, the owner of the discount Pepco and Dealz brands in mainland Europe and Poundland in the UK, had reported record trade over the festive period, saying in January that gained amid its ongoing store rollout, its status as a discount retailer in tough economic conditions, as well as a healthy stock position.
Pepkor, the owner of Pep and Incredible Connection, among other brands, grew revenue by only 4% in euro-terms, amid a weaker rand, but also unprecedented load shedding in SA, along with a sub-optimal merchandise mix at Ackermans.
Pepkor
Pepkor is Africa's largest retailer by store-footprint, operating 5 900 stores in ten African countries, while also operating in Brazil.
Pepkor had said in January the number of lost hours from load shedding had tripled in the three months to end-December, but its discount fashion model was still holding up well, and its market share was higher than it was before Covid-19.
Earlier in February, Steinhoff sold R4.9 billion worth of Pepkor shares, bringing its shareholding down to 43.8% from 51%, while in January, it sold about R5.8 billion worth of Pepco, taking its stake to 73.2%, from 78.9%.
Steinhoff, valued at about R1.2 billion on the JSE, last reported a €10.2 billion (R191 billion) debt pile, and announced in December that it had reached a deal with its largest creditors, which could see it holding 80% of the company.
Shareholders, who would retain 20%, are expected to vote on this on 22 March, and approval would mean the company would then delist.
Steinhoff's shares were trading 3.33% lower at 29c on Friday morning, having fallen by more than 90% over the past year. – Fin24
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