Acquisitions bolster revenue at Steinhoff
Sales growth beat inflation even without new businesses, says analyst
Having bedded down a number of deals in 2016, Steinhoff is already reaping the financial benefits from its acquisitions, which contributed €1.3bn to the company’s coffers. The integrated retailer said on Tuesday that total revenue in the first quarter had increased 45% to €5.3bn. Without the contribution of the newly acquired Mattress Firm and Poundland businesses, Steinhoff’s total revenue in the three months to December 31 2016 rose 11%. Mergence equity analyst Peter Takaendesa said the group’s core operations in household goods and general merchandise retail continued to grow ahead of expectations. Revenue for the household goods and general merchandise segments rose 41% to €3.2bn and 66% to €1.8bn. "Despite weaker economies in most regions, Steinhoff is continuing to grow sales ahead of inflation, even if you exclude new business acquisitions. This implies they are continuing to gain market share organically and boosting further with new business acquisitions. A recovery in the ...
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