SNH: STEINHOFF INTERNATIONAL HOLDINGS N.V. - Steinhoff Continues Strong Growth Momentum In The Quarter Ended 31 December 2016

SNH: STEINHOFF INTERNATIONAL HOLDINGS N.V. - Steinhoff Continues Strong Growth Momentum In The Quarter Ended 31 December 2016
Steinhoff Continues Strong Growth Momentum In The Quarter Ended 31 December 2016
STEINHOFF INTERNATIONAL HOLDINGS N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share code: SNH
ISIN: NL0011375019
28 February 2017
Steinhoff continues strong growth momentum in the quarter ended 31 December 2016
(Q1FY2017)
Amsterdam, The Netherlands, 28 February 2017 - Steinhoff International Holdings N.V.
("Steinhoff") today announced its financial results for the first quarter of the 2017 financial year
that ended on 31 December 2016. This quarter saw a continuation of sales momentum, similar
to that seen during the last quarter of the 2016 fiscal year. The group´s total revenue for the
quarter increased by 45% against the comparative quarter to EUR5.3 billion. This growth includes
the newly acquired Mattress Firm and Poundland businesses, which in aggregate contributed
revenue of EUR1.3 billion during the quarter under review. Excluding these acquisitions, group
revenue increased by 11%.
Markus Jooste, CEO of Steinhoff, said: "The group performed well during the first quarter of the
2017 financial year with growth momentum continuing in line with management expectations as
our business positioning in the discount segment of the market has continued to be beneficial to
the group. Revenue growth achieved in the European General Merchandise segment exceeded our
expectations and management must be commended with strong double digit like-for-like sales
growth (excluding the effect of the Poundland acquisition). The Poundland business´s performance
was ahead of the value creation plan and positive like for like sales was achieved for the quarter."
Revenue for the Household goods retail segment improved by 41% to EUR3.2 billion in the period
under review. Retail revenue in this segment, excluding Mattress Firm and global supply chain
operations, increased by 13%. In Europe, the Conforama group performed well during the
quarter with continued market share gains in all territories. The ERM business continued to
perform well, with continued revenue growth as a result of the resilient performance in the
German-speaking territories as well as the effect of new store openings. In the US, Mattress
Firm´s quarter under review, is traditionally its slowest trading quarter. The revenue was also
impacted by the accelerated integration of Sleepy´s stores in order to fast track the single brand
rationalisation. In the UK and Australia, revenue was maintained on a constant currency basis,
notwithstanding the challenging post-Brexit UK environment. In southern Africa, like-for-like
revenue growth amounted to 6% despite difficult market conditions.
Our General Merchandise retail segment continued to exhibit strong growth, increasing
revenue by 66% to EUR1.8 billion. This includes the newly acquired Poundland business, which
performed ahead of expectation during the quarter. Excluding the contribution of Poundland,
revenue increased by 17%. The European division continued strong growth momentum with
growth (excluding the Poundland division) above 50% and strong double digit like for like
revenue growth, highlighting the success of the trading model in Eastern Europe. Double digit
revenue growth in South Africa was underscored by the resilience of the defensive Pepkor
model and supported by modest footprint growth. Australia and the rest of Africa performed
well in challenging market conditions with the former delivering flat revenue in constant
currency while the rest of African operations reported strong constant currency growth.
The Automotive division increased revenue by 6% in constant currency for the quarter. On a
like-for-like basis, revenue increased by 4% despite continued weakness in the new and pre-
owned vehicle markets in South Africa.
Outlook
Based on the group´s performance during the first quarter, management remains confident that
the momentum in the business will continue and that the group will perform in line with
expectations.
Additional information
The quarterly financial update is available in English via the following link:
www.steinhoffinternational.com.
Steinhoff will host a conference call for analysts and investors on 28 February 2017 at 14:00 pm
CET to discuss its quarterly update. The webcast link is on the company website via
www.steinhoffinternational.com
Media contact
Reina De Waal
Investor Relations
Manager: Corporate Services
Phone: +27 21 808 0711
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 Europe, the United Kingdom, the United States of America, 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; and
   - 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 125 000 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 EUR22 billion.
JSE Sponsor: PSG Capital Proprietary Limited
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