Steinhoff posts H1 loss as restructuring wipes out sales gain

Steinhoff, Stellenbosch. Photo: David Harrison – [email protected]

JOHANNESBSURG – South African retailer Steinhoff, which has been embroiled in an accounting scandal, said its first-half retail revenues rose 1 percent but it still posted a net loss due among others to restructuring costs and losses on asset disposals.
Retail revenues rose to 9.4 billion euros ($11.1 billion) in the six months through March from a restated 9.3 billion in the year-earlier period, it said following a meeting with lenders on Friday, citing preliminary figures.
It remains essential that a restructuring is agreed with lenders as soon as possible, it said.
The group announced recently out of that €10.4bn debt, an amount of €8.7bn is attributable to Europe, with €1.4bn to South Africa and €0.25bn to its US operations. 
Ron Klipin, Cratos Capital senior analyst, said he expected Steinhoff to sell bigger stakes in South African operations in KAP Industrial Holdings, STAR and PSG Group. 
“They could have raised more liquidity by selling off more stakes in these companies,” he said.