Steinhoff Says Profit Rises 11% as Retail Operations Improve

Steinhoff International Holdings Ltd. (SHF), a South African furniture maker dependent on Europe for more than half its revenue, said six-month earnings rose 11 percent as the group gained market share.

Net income rose to 3.24 billion rand ($358 million) from 2.91 billion rand a year ago, the company said in a statement today. Basic earnings per share increased to 173.9 cents from 165.5 cents a year earlier. Sales jumped 52 percent to 57.3 billion rand from 37.6 billion rand.

“The integrated retail business in Europe reported solid results and increased market share in many of the territories where the group operates,” the company said.

The stock gained as much as 2.6 percent, the biggest intraday increase since Jan. 31, and traded 1.8 percent higher to 26.45 rand by 3:23 p.m. in Johannesburg.

“Our enlarged business in Europe is certainly producing benefits and this, coupled with continued investments in infrastructure, has helped to improve margins for the group,” Chief Executive Officer Markus Jooste said in the statement.

To contact the reporter on this story: Kamlesh Bhuckory in Johannesburg at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net