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Steinhoff reports 4% sales growth for nine months to end-June

The retailer says consumer confidence in its offering has ‘continued to stabilise’.
A number of lawsuits continue to pose a challenge, according to the company. Picture: Waldo Swiegers, Bloomberg

South African retailer Steinhoff, trying to recover from a $7 billion accounting fraud, on Thursday said its sales increased by 4% in the nine months to June 30 thanks to a strong showing from its Pepkor Europe and Pepkor Africa businesses.

The company has been restructuring after it revealed the accounting problems in December 2017, which shocked investors and wiped out more than R200 billion of shareholder equity.

Earlier this month, Steinhoff, in its first presentation to investors since the scandal broke, said the group’s best hope for survival was to slim down into a retail-focused holding company.

On Thursday, the company said this would give it a well-diversified exposure to a number of strong local brands.

Steinhoff’s net sales from continuing operations for the nine-month period stood at 10.1 billion euros ($11.26 billion) a 4% increase driven by 13% sales growth at Pepkor Europe and 3% growth at Pepkor Africa.

“Encouragingly, customer confidence in our offering has continued to stabilise,” Steinhoff said, adding that its operational performance continued to reflect difficult trading conditions and the impact of the accounting scandal.

Established more than 50 years ago, the company transformed itself from a small South African business to a furniture and household goods retailer straddling four continents before its dramatic fall from grace.

Revenues were flat at two of the company’s businesses – Mattress Firm in the United States and French furniture retail division Conforama.

The company’s debt stood at 9.09 billion euros during the period and a number of lawsuits against the company continue to pose a challenge, Steinhoff said.

Steinhoff said all options would be considered as part of its debt reduction strategy, adding it would continue to keep the ownership of its well-performing businesses under review.

The company’s shares were up 1.68% at 0838 GMT.

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Steinhoff was built on furniture businesses, which created ALL the debt and fraud by Jooste and his cronies, yet its the Pepkor businesses which are putting the sales in tills and profits, and keeping Steinhoff afloat….

It’s funny listening to the bulls on Tv saying they wont survive and all asset managers “staying clear”.

Think analysts from alan gray and coro should just sit this one out. Why would I listen to your recommendation if you got it so wrong in the past.

It’s like these druggies and reformed alcoholics talking at schools to warn kids. Why would I listen to a moron when I have examples of people who kept it together all their life.

Increasingly looking that steinhoff survives this and is a 10x from here. Just watch.

tripleleveretf, what are you saying sharp-sharp?


Coronation were buyers at very high levels (ZAR80.00 and up) praising Jooste and company for being a genius and visionaries. Then the crash came. Instead of owning up to poor analysts with UCT and CFA qualifications (GROUPTHINK) they blamed management even though many wallstreet firms saw the fraud without even covering the company.

Then Coronation sold all shares during 2018 citing that the company won’t survive. There’s more! They sold at ZAR1.00. WHY SELL at that price. There’s more. They then decide to sue the company! hahahahaha. For what? OWN UP TO YOUR MISTAKES. You don’t know how to analyse a basic “roll-up strategy”.

I have no sympathy for these asset managers who are grossly under performing when the bull run stopped. They need to be held accountable. Maybe less time wearing K-way jackets and doing endurance runs on the weekend and more research reports. It’s scary how overpaid these managers are when you look at their complete inability to outperform in a tough market.

There’s a business here. Growth in any business in this market is good. Leave alone the shananigans. For as long as the numbers ‘fairly represent’. Think I will
Buy shares R100. I might get at 100 shares.

End of comments.





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