- Steinhoff’s full-year operating profit rose 32%
- The retail group’s sales soared 33%
- The South African retail giant warned that its existing UK businesses including Harveys and Bensons for Beds could be adversely effected by a fall in the value of the pound
Steinhoff has recorded increased profits and sales but warned that the value of the pound could have “an adverse effect on future margin”.
The South African retail conglomerate, which had its increased takeover offer for value retailer Poundland accepted last month, has recorded a 32% rise in its full-year operating profit to €1.5bn (£1.27bn) in the 12 months to 30 June.
The retail group also recorded a 33% increase in sales to €13.1bn (£11.1bn) during the same period.
Steinhoff said it had delivered “a solid set of results amid volatile markets and currencies”.
However, the South African retail giant warned that a slump in the value of the pound triggered by the EU referendum could have “an adverse effect on future margin” across its UK operations, which include furniture retailers Harveys and Bensons for Beds.
The retail group, which also operates retail businesses across Europe, Africa and Australasia, said that the devaluation of the pound may result in an “unfavourable effect when translating our businesses’ earnings reported in euro.”
Steinhoff, which also attempted takeover bids for Argos and French electricals business Darty earlier this year, said it would be protected “to some degree” against the depreciation of the pound as its bedding and furniture goods are made in the UK.
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