Steinhoff does well despite rand
Larry Claasen
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Industrial Correspondent
FURNITURE maker and distributor Steinhoff International’s recent acquisitions and a buoyant consumer market in SA and the Pacific rim pushed up revenue and earnings in its results for the half year to end December.
Steinhoff CEO Marcus Jooste said yesterday all its divisions and regions had made positive contributions to the group’s results.
Revenue was up 31% to R7bn, operating income increased 31% to R935m and attributable income rose 36% to R499,6m.
Andisa Securities analyst Evan Walker said the figures were very good considering the strengthening of the rand against the euro.
Steinhoff, which earns about 47% of its revenue in euros, converted its euro earnings at R7,8321, compared with the R8,2051 rate for the comparable period.
Revenue from European operations rose 13%, to à424,3m, while earnings increased 10%, to à59,6m.
Jooste said it was really important to the group to have met its target of growing total earnings more than 30% in euro terms.
Walker said he expected growth in the first half of the year to continue into the second half.
Jooste said the consumer market in SA was still buoyant as sales were very good in January and February.
The consolidation of transport and logistics company Unitrans figured in Steinhoff’s numbers after it increased its holding to 61% last week. This is also expected to bolster its figures for the second half of the year.
Jooste said Unitrans would gain by having Steinhoff as a secure customer, and Steinhoff benefited by having a transport company supporting its demanding logistics requirements.
Jooste did not rule out making further acquisitions in Europe. He said the European market was ripe for further consolidation as it was dominated by small operations. Steinhoff was the largest furniture maker in Europe, but held only 3% of the market.
Jooste said he was happy with the present arrangement in which Steinhoff subcontracted factories to manufacture components exclusively for its needs
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