SNH: STEINHOFF INTERNATIONAL HOLDINGS N.V. - Interim Results For The Six Months Ended 31 March 2017

SNH: STEINHOFF INTERNATIONAL HOLDINGS N.V. - Interim Results For The Six Months Ended 31 March 2017
Interim Results For The Six Months Ended 31 March 2017
STEINHOFF INTERNATIONAL HOLDINGS N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share code: SNH
ISIN: NL0011375019
Media Release
7 June 2017
Steinhoff reports solid results amidst volatile market conditions
Amsterdam, The Netherlands, 7 June 2017 - Steinhoff International Holdings N.V. ("Steinhoff")
today announced its financial results for the six months ended 31 March 2017. Corporate
activity during the period contributed to good revenue growth of 48% to EUR10.2 billion while
operating profit grew by 13% to EUR903 million. Excluding the recent strategic acquisitions, the
company´s retail business achieved total organic revenue of EUR7.2 billion amidst volatile markets
and currencies, translating to 9% organic growth. Organic operating profit of the retail
businesses grew by 15% to EUR534 million, resulting in a 40bps increase in operating margin to
7.5%.
Commenting on the results, Markus Jooste, CEO of Steinhoff, said: "This solid revenue and
margin performance underscores the resilient model of the group. This has been further
underpinned by both our product and geographical diversification in what remains a resilient
discount market. The strong leadership and execution from our operationally focussed
management teams also continues to deliver good growth."
In addition, during the period under review the group was focussed on the implementation and
bedding down of recent strategic acquisitions. This included the repositioning phase of Mattress
Firm subsequent to the rebranding of approximately 1 400 Sleepy´s and Sleep Train stores.
Mattress Firm reported revenue of EUR1.5 billion for the period under review, and reported an
adjusted operating margin of 4.5% after adjusting for once-off EUR48 million rebranding costs.
During the period under review Steinhoff announced a new strategic partnership with Serta
Simmons, the largest manufacturer of mattresses in the United States. Steinhoff also announced
the acquisition of Sherwood Bedding, an existing supplier of private label products to Mattress
Firm. The acquisitions of Poundland in the UK and Fantastic Furniture in Australia are
outperforming expectations, with Poundland recording positive like-for-like growth for the first
time since December 2014.
Overall, the integrated household goods segment increased revenue by 39% to EUR6.3 billion for
the period under review. Despite flat organic revenue in constant currency (excluding the
acquisition of Mattress Firm), adjusted retail margin increased by 30 bps to 7.1% after adjusting
for once-off costs of EUR20 million relating to kika-Leiner refurbishment costs and EUR5 million
African restructuring costs. Although Conforama´s underlying operations reported revenue
declining by 1.5%, margin increased by 60bps on the back of growth in higher margin products
and supply chain efficiencies. In the European Retail Management (ERM) business revenue
grew by 13% to EUR1.3 billion, where Poco continues to outperform the market in Germany while
kika-Leiner, which was consolidated for only 4 months in the comparative period, reported
stable like-for-like growth. Margins in the UK operations showed a 60bps increase despite a
decline in revenue, related to a 14% devaluation of the Pound, a challenging post-Brexit
environment and store closures. In Australia revenue increased by 64% driven by the
acquisition of Fantastic Furniture. The African business increased its total revenue by 25% to
EUR522 million, impacted by a 14% strengthening of the Rand, store closures and the inclusion of
Iliad for only 3 months in the comparative period. On a like-for-like basis, African revenue
increased by 4%, a strong performance despite a challenging trading environment.
The momentum in the general merchandise retail segment continued with another excellent set
of results for the first six months with revenue growth of 79% to EUR3.2 billion. Excluding
Poundland, the business increased revenue by 19% on a constant currency basis. In Europe,
revenue excluding Poundland increased by 58% to EUR490 million and constant currency revenue
increased by 60%, supported by strong like-for-like growth of more than 20% and new store
roll outs.
In Africa, momentum in Pepkor´s discount and value retail concepts continued to record strong
results, with revenue growing by 25% to EUR1.4 billion despite weaker consumer markets. On a
constant currency basis revenue increased by 10% with solid like-for-like revenue growth of
8%. This underscores the resilience of Pepkor´s defensive business model as double-digit sales
and operating profit growth were achieved for the 18th consecutive year.
The automotive retail division in southern Africa reported good results, despite the continued
decline in new car sales and commercial vehicle sales with revenue growth of 19% to EUR702
million, while revenue in constant currency increased by 5%.
"Based on the group´s performance during the interim period, we remain confident that the
momentum in the business will continue and that the group will perform in line with
expectations," concluded Jooste.
Additional information
Additional information and the half-year financial report are available in English via the
following link: www.steinhoffinternational.com.
If you would like to attend the webcast for analysts and investors at 3:00 pm CEST, please use
the following link: http://services.choruscall.eu/links/steinhoff170607.html
Media contact
Reina de Waal
Investor Relations
Phone: +27 21 808 0711
Email: investors@steinhoffinternational.com
About Steinhoff International Holdings N.V.
Steinhoff is the world´s third largest integrated household goods retailer by turnover, according
to Möbelmarkt 2017, with 50 brands and 12 000 retail stores in more than 30 countries.
Steinhoff retails, sources and manufactures household goods and general merchandise in
Europe, the United Kingdom, the United States of America, Australasia and Africa. Retail
operations are positioned towards price conscious (value) consumer segments, providing
everyday products at affordable prices and serving customers at their convenience.
Our integrated retail divisions comprise:
   o Household goods (furniture and homeware retail businesses)
   o General merchandise focusing on clothing and footwear, accessories and homeware; and                                               2
   o Automotive dealerships in South Africa which provide a broad range of new and pre-
     owned vehicles, parts, insurance, accessories and servicing. In addition, Hertz car rental
     outlets are included in this segment
Steinhoff employs approximately 130 000 employees and has a primary listing on the Frankfurt
Stock Exchange and a secondary listing on the Johannesburg Stock Exchange with a current
market capitalisation of approximately EUR21 billion.
Sponsor - PSG Capital Proprietary Limited

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