The investment case for Steinhoff

Steinhoff has had a busy few months. In September it listed Steinhoff Africa Retail (Star), which includes Pep and Ackermans, but it’s also encountered some legal difficulties in Europe. What do the investment analysts have to say about this behemoth in the household goods space?

Lloyd Gedye

late last year Steinhoff was ranked amongst the top 50 global shares to watch in 2017 by Bloomberg Intelligence. The Bloomberg analysts looked at revenue growth, market share, profit margins, debt and economic conditions to select the top 50 companies. Incorporated in the Netherlands, Steinhoff has its primary listing on the Frankfurt Stock Exchange and a secondary listing on the JSE. It operates in 32 countries, employs 130 000 people and is the world’s second-largest furniture company after IKEA. The Bloomberg analysts highlighted Steinhoff’s aggressive expansion in the US, UK and Australia, which at the time included over R70bn worth of deals. This included the acquisition of Poundland (R11.4bn) in the UK, Mattress Firm (R55bn) in the US, Fantastic Holdings (R3.93bn) in Australia and Tekkie Town (undisclosed) in South Africa. 32 countries, employs 130…

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Finweek - English (Digital) - 1 Issue, 19-oct-17

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