Steinhoff share price bouys up on wave of revenue spike

Johannesburg – Steinhoff International Holdings share price on the JSE on Friday closed 2.1% higher at R2.38, after the group reported that the gradual easing of global lockdown restrictions had boosted its revenue.

In a trading update, on Friday, the global retailer reported a 15% increase in revenue to 6.81 billion pounds R118 billion) in the first nine months of the 2021 financial year, up from 5.9 billion pounds in the same period, last year.

Steinhoff said all operations performed well in the third quarter, while results in the comparative quarter reflected a period when significant lockdown restrictions were in force.

Revenue rose by 16% to 3.03 billion pounds for the Steinhoff’s Pepco Group as customer restrictions were progressively eased, following 18.4% total trading weeks lost.

Steinhoff’s US-based Mattress Firm recorded a 29% increase in revenue to 2.63 billion pounds despite a 3.7% reduction in the store base year-on-year and store closures due to Covid-19.

It’s JSE-listed Pepkor Afrika saw revenue increasing by 12% to 3billion pounds in spite of volatile third quarter trading which moderated in April, followed by strong trading in May and a return to more subdued trading in June.

According to Steinhoff chief executive Louis du Preez, Pepkor continued to expect a constrained retail environment going forward.

Du Preez said this was as a result of the longer-term impact of Covid-19 on the South African economy, further exacerbated by the recent civil unrest, that resulted in damage to 105 of Pepkor’s store base, such as PEP, Ackermans and Russels.

“Recovery plans have been formulated and implementation has commenced,” said Du Preez.

“The pace at which stores will be reopened is dependent on factors such as access to materials and equipment for store refitment purposes and the ability of property owners to restore premises which suffered extensive damage.”

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