The integrated retailer that manufactures, sources and retails furniture and household goods in Europe, Africa and the Pacific Rim also reported revenue increases by 20 per cent to 117 billion rand up from 97 billion in 2013.
[DATA SHF:Steinhoff International Holdings Limited]’s headline earnings from continuing and discontinued operations increased by 23 per cent to 8.8 billion rand from 7.1 billion in the same comparable period.
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The company's headline earnings from continuing operations rose 40 per cent to 9.1 billion rand from 6.5 billion rand for the comparable period in 2013.
The furniture manufacturer says, in a year where consumer confidence in Europe showed some improvement, market share gains and margin improvement were prominent in the majority of the countries where we operate.
The company noted that relevant infrastructure, efficient supply chain, and e-commerce strategy in its European operations positioned the company for positive growth in the region.
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“Steinhoff Europe is in a good position to efficiently link customers to the group's price competitive product range and it continues to take market share in Europe,” read the company statement on SENS.
“With continued investment in stores, the European retail footprint and properties with fixed-yield internal rental streams will protect the sustainability of the group's retail operations and cost base.”
Steinhoff says, the international retail operations benefited from the group's growing purchasing power, group procurement initiatives and established infrastructure.
Steinhoff added that the increasing value of the group's asset base, underpinned by the property portfolio, increases the group's ability to secure long-term financing at competitive rates.