(Adds Poundland performance, U.S. mattress deals, share price)
JOHANNESBURG, June 7 South Africa-based retail
group Steinhoff International reported a 13
percent rise in half-year operating profit and a 48 percent jump
in revenue as recent acquisitions buoyed sales.
Steinhoff, which bought U.S.-based Mattress Firm and
Britain's Poundland last year, said operating profit rose to 903
million euros ($1.02 billion) in the six months to the end of
March, up from 797 million euros a year earlier.
But diluted sustainable earnings per share (EPS) slipped 6
percent to 15.50 euro cents after the firm issued shares to
finance the acquisitions, so issued shares rose 15 percent.
Steinhoff's Johannesburg-listed shares dipped 2.8 percent to
67.53 rand by 0811 GMT, while its Frankfurt-listed shares fell
"Excluding the recent strategic acquisitions, the company's
retail business achieved total organic revenue of 7.2 billion
euros amidst volatile markets and currencies, translating to 9
percent organic growth," Steinhoff said in a statement.
The South African group, which moved its primary listing to
Frankfurt in 2015, focuses on thrifty furniture shoppers in
developed markets such as Europe and the United States. It also
sells clothing and mobile phone airtime in Africa.
Geographical and product diversification in a resilient
discount market led to solid revenue and operating margins,
Chief Executive Markus Jooste said.
U.S. bedding retail unit Mattress Firm, with 1,400 rebranded
Sleepy's and Sleep Train stores, contributed 1.5 billion euros
Steinhoff, after phasing out Tempur-Sealy brands at
its Mattress Firm stores, bought supplier Sherwood Bedding and
announced a partnership with manufacturer Serta Simmons.
"Although this creates short term disruption in our business
we remain confident that, strategically, this is the best long
term strategy for the business in the USA," Steinhoff said.
In Britain, discount chain Poundland was performing better
than expected, recording positive like-for-like growth for the
first time since December 2014, the company said.
Steinhoff, after withdrawing from a plan to merge its
African assets with grocer Shoprite, last month said it
planned to list its African businesses separately on the
Johannesburg Securities Exchange.
($1 = 0.8876 euros)
(Reporting by TJ Strydom; Editing by Jason Neely and Edmund