Steinhoff grows global earnings but warns of 'unpredictability' from war in Ukraine

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A customer enters a Pepco store in Krakow, Poland.
A customer enters a Pepco store in Krakow, Poland.
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Retailer Steinhoff says its global operations focusing on "everyday value" in Africa and Europe grew in the first half of the year, while its smaller furniture and bed operations in Australia and New Zealand saw revenue fall.  

It is unaudited results for the six months ended March 2022, Steinhoff also warned of "volatility and unpredictability" caused by the war in Ukraine, which borders three of Steinhoff's largest markets in Eastern Europe. 

The group's share price dropped by 6% on Friday afternoon. 

"The markets within which the group operates are likely to remain volatile in the near term, due to the situation in Ukraine, ongoing global inflationary pressures and other regional challenges," Steinhoff said. 

The retailer said that in the first half of the year, global revenue grew by 12% from €4.6 billion in 2021 to €5.1 billion this year. 

Earnings before the deduction of interest, tax and amortisation (EBITA), meanwhile, increased by 13% to €760 million, up from €675 million last year. 

Steinhoff publishes its financial results in euros, as it is domiciled in the Netherlands and has its primary listing in Germany. 

"Individual businesses, such as Pepkor Holdings and Pepco Group, with their everyday value focus, continued to perform well throughout the reporting period, while others, such as Greenlit Brands and Mattress Firm, reported declining trade," it said. 

While the impact of Covid-19 has continued to ease, Russia's invasion of Ukraine created "volatility and unpredictability" in Eastern Europe. Nevertheless, the Pepco Group, which is listed on the Warsaw Stock Exchange and includes most of Steinhoff's operations, grew revenue by 19% to €2.37 billion. 

Steinhoff said its African subsidiary, JSE-listed Pepkor Holdings, grew revenue by 9% in euro terms (but only 3% in rand terms) to €2.4 billion.

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