For the Steinhoff lovers , Gurus and pumpers;
extracts from the 9 months quarterly review / update dated 30June 2018 ( Unaudited)
The extraordinary events during the current year have created significant uncertainties for the Group and its operating businesses. Furthermore, the confidence of the Group’s suppliers, creditors and customers has been undermined. This all contributed to a difficult general trading environment (as explained in more detail in the operational review) and significant diversion of management’s time.
The Group reported revenue growth of 2% to
€12.9 billion (9MFY17: €12.7 billion) from continuing operations for the nine months under review.
Operational results were severely impacted by the Steinhoff events and a difficult general retail trading environment
Operational entities were impacted by the events at their parent company and operational management teams faced additional challenges and incurred extraordinary costs. These challenges include:
• Liquidity management
- Raising working capital facilities at operating entity level to replace Group treasury funding
- Change of operational processes resulting from reduced supplier credit
- Active engagement with suppliers and credit insurers to substantiate and maintain reduced credit lines
• Customer confidence
- The negative press surrounding the Group influenced customer behaviour in many of the operations, and during this period enhanced communication was required. This was specifically relevant in product categories that provide multi-year customer guarantees and with made-to-order furniture (for example kitchens, upholstery and other large furniture items), as these products have a long lead time and require customers to pay a deposit upon ordering. These transactions were under pressure as a result of the uncertainty surrounding the stability of the Steinhoff Group.
• Organic growth
- In the household goods business, store openings and capex projects were put on hold.
- Business plans of all the operations have been thoroughly interrogated and management has been tasked to focus on profitability, cash flow, inventory management and overall cost reduction.
Difficult general retail trading environment
In most territories where the Group operates, operational divisions have experienced difficult trading environments resulting in reduced store traffic footfall and store profitability. The trading environment was influenced in the various geographies by low economic growth rates, increased competition and overtrading, the impact of online retailers, and customer indebtedness.
Above is just tip of the ICEBERG.....
Imagine when the Audited AFS comes out
BTW i didnt read anything about Steinhoff before my streetwise conclusion that it is going to zero and pulled this out only today..
Pretty obvious to me the name Steinhoff and the word disaster is 2 things you need to keep away from.