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Media Release
STEINHOFF INTERNATIONAL HOLDINGS N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share code: SNH
ISIN: NL0011375019
Media Release
Steinhoff continues its growth path in the first half of the financial year 2016
- Revenue growth of 47% to €6.7bn
- Operating profit before capital items increased by 67% to €802m
- Successful listing on Frankfurt Stock Exchange
Amsterdam, The Netherlands, 29 February 2016 – Steinhoff International Holdings N.V.
("Steinhoff“) today announced its financial results for the first half of the financial year 2016
ended 31 December 2015. Due to Steinhoff’s strong position in the growing discount market
segment, the group increased its revenue by 47% to €6.7bn. Its operating profit before capital
items rose by 67% to €802m in the same period. Excluding the performance of the acquired
Pepkor group, operating margins increased for the third consecutive year. The strong
development in the reporting period was mainly due to the above-market growth in the
discount market especially in Steinhoff’s key regions Europe and Africa.
Markus Jooste, CEO of Steinhoff, said: “The first six months of our financial year 2016 have been
very exciting for Steinhoff. Through our strategic focus on key markets and territories,
supported by good efficiencies within our supply chain we were able to keep prices low and
grow market share. The integration of the Pepkor group of companies is on track, and
synergistic cost savings and enhanced growth capabilities for the combined group will continue
to support earnings.”
Good growth momentum
Revenue of the Household goods retail segment increased by 8% to €4.2bn, and operating
profit rose by 27% to €587m. This retail segment benefited from strong Christmas trade and
market share gains in strategic product categories, thereby benefiting margins. The acquisition
of kika-Leiner became effective in December 2015. This leading furniture retailer with annual
revenues of approximately €1bn, will further strengthen Steinhoff’s market presence in key
European markets such as Austria, Hungary, Czech Republic, Slovakia and Romania.
The General merchandise retail segment reflects the successful integration of the multi-
national retailer Pepkor, which was acquired on the 1st of April 2015. The acquisition of Pepkor
expanded the group’s position in the discount retail segment and diversified its product
portfolio in this fast growing area. Notwithstanding the 6% devaluation of the South African
rand to the euro, revenue of the business segment rose by 19% to €1.85bn and operating profit
increased by 25% to €197m.
The revenue of the comparatively small Automotive retail business segment remained flat
during the period at €649m compared to the comparative period, although constant currency
revenue increased by 5%. Operating profit declined by 5.3% to €18m.
Strong cash flow performance
Supported by the strong cash generative model of the general merchandise retail division, the
group generated cash from operations of €791m, after taking into account the investment in
working capital. Apart from the group’s own share repurchases amounting to €758m during the
reporting period, Steinhoff continued investments into its integrated supply chain and property
portfolio.
Successful listing on the Prime Standard of the Frankfurt Stock Exchange
On the 7th of December 2015 Steinhoff listed on the Prime Standard of the Frankfurt Stock
Exchange. With a market capitalization of €19bn, this event marked the largest prime standard
listing in Germany during 2015. The listing in Frankfurt will enhance the group’s ability to
access global capital markets and support the expansion of its European operations and other
growth opportunities available in the international markets. The group retains its secondary
listing on the Johannesburg Stock Exchange in South Africa where Steinhoff has been listed
since 1998.
Outlook
The positive growth momentum of the discount market segment is expected to continue for the
remainder of this financial year. This growth momentum, supported by the investment in the
group’s store network in the last three years, should continue to enable the group to take
market share. The group is confident that its supply chain and sourcing strategies will protect
margins for the remainder of this financial year.
Additional information
Additional information and the interim financial report and presentation for analysts and
investors are available in English via the following link: www.steinhoffinternational.com.
If you would like to attend the webcast for analysts and investors at 4:00 pm CET, please use the
following link: www.audio-webcast.com/cgi-bin/visitors.ssp?fn=analyst&id=3383.
Media contact
Mariza Nel
International Group Services
Director: Corporate Services
Phone: +27 21 808 0700
Email: investors@steinhoffinternational.com
About Steinhoff International Holdings N.V.
Steinhoff is an integrated retailer that retails, sources and manufactures household goods and
general merchandise in the United Kingdom, Europe, Africa and Australasia. Retail operations
are positioned towards price conscious (value) consumer segments, providing them with
affordable products through a vertically integrated supply chain.
Our integrated retail divisions comprise:
- Household goods (furniture and homeware retail businesses)
- General merchandise focusing on clothing and footwear, accessories and homeware
- Automotive dealerships in South Africa which provide a broad range of new and pre-
owned vehicles, parts, insurance, accessories and servicing
The Steinhoff Group's property portfolio remains a key strategic component in securing a
relevant infrastructure and store network for its integrated retail businesses.
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Steinhoff has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the
Johannesburg Stock Exchange, and has a current market capitalisation of approximately
€18 billion, approximately 105 000 employees, and broad global operations with a presence in
Continental Europe, southern Africa, the UK and Australasia.
29 February 2016
JSE Sponsor
PSG Capital Proprietary Limited
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