Small growth in revenue for Steinhoff boosts share price more than 6%
But the unaudited data included in the sales update does not give an indication of Steinhoff’s profitability
Steinhoff International’s share price rose as much as 6.3% to R3.02 on Friday after it released a sales update that showed small growth in revenue for the nine months to end-June, but provided no indication of profitability.
Steinhoff reported its total revenue grew 2% to €12.9bn in the nine months, from €12.7bn in the matching period in 2017.
In Frankfurt, its share rose 3% to €0.18.
"The negative press surrounding the group influenced customer behaviour in many of the operations, and during this period enhanced communication was required," the trading statement said.
Its US businesses, Mattress Firm and Sherwood Bedding, suffered a 4% decline in sales to €1.9bn.
Mattress Firm’s sales suffered from "significant near-term disruptions from the accelerated rebranding of more than 1,300 stores, combined with underperforming product transitions following the exit of Mattress Firm’s supply arrangement with its largest supplier".
Friday’s update included this caveat: "The revenue and other financial information on the group contained in the operational review and this update are unaudited. Shareholders and other investors are advised to exercise caution when dealing in the securities of the group."