The parent company of Poundland has recorded upticks in half-year profits and sales, although its performance in the UK market was dented by the devaluing pound.
South African retail conglomorate Steinhoff, which also owns Benson for Beds in the UK, recorded a 13 per cent increase in operating profit to €903 million (£784.23 million) in the six months to March 31, as well as revenue growth of 48 per cent to €10.1 billion (£8.77 billion).
The company’s recent acquisitions, which includes Poundland, helped deliver a nine per cent increase in revenue excluding acquisition costs.
However, Steinhoff’s operating profit in the UK alone dropped 12 per cent during the period to €23 million (£19.96 million) while revenue dropped 19 per cent to €325 million (£282.13 million). There was also a two per cent dip in like-for-likes in the region.
Steinhoff attributed the declines to the devaluation of the pound and the decision to shut down 57 loss-making Poundland stores during the half-year period.
Steinhoff chief executive Markus Joost said this “should have a positive impact on profitability going forward”.
“We remain excited about the Poundland acquisition providing the general merchandise business with the necessary scale in the UK,” he said.
“Poundland is trading ahead of expectations with continuing positive like-for-like revenue growth.”