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Steinhoff Investments swung into a full-year loss

Steinhoff Investment Holdings on Friday swung into a full-year loss of R13.68 billion for the year to end September. Photographer: Dwayne Senior/Bloomberg

Steinhoff Investment Holdings on Friday swung into a full-year loss of R13.68 billion for the year to end September. Photographer: Dwayne Senior/Bloomberg

Published Dec 18, 2020

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DURBAN - Steinhoff Investment Holdings, a wholly-owned subsidiary of Steinhoff International Holdings, on Friday swung into a full-year loss of R13.68 billion for the year to end September, negatively impacted by impairments and Covid-19 outbreak in its operations.

The group reversed a profit of R3.94bn it reported last year.

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Steinhoff Investments said it recorded total impairments of R5.1bn during the financial year.

The group also made a provision of R9.4bn in respect of litigation settlement proposal and a foreign exchange loss of R5bn was recognised on the Steinhoff International Holdings Proprietary Limited contingent payment undertaking (SIHPL CPU) liability.

In July Steinhoff said it was engaged in active discussions with litigants, their legal representatives, creditors and other relevant parties for a proposal of R16.5bn to settle past legal disputes arising from the December 2017 accounting scandal.

In the results, revenue from continuing operations increased by 3.5 percent to R63.7bn and an operating loss of R9.49bn compared to an operating profit of R7.57bn reported last year.

Its headline loss surged to 12 483.1 cents a share, from headline earnings per share (Heps) of 7 971.6c compared to a year earlier.

The group said the ongoing Covid-19 has had a material impact on its retail businesses from March 230, when lockdown measures were initiated.

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“These measures resulted in the temporary closure of many of the Steinhoff Investments group’s general merchandise stores and central office and warehousing facilities. Given the significant and immediate impact on revenue and cash, management acted swiftly to implement a definitive Covid-19 response strategy,” the group said.

The group added that while it is confident that these actions to address the impacts of Covid-19 are appropriate and timely, the situation remains fast moving and uncertain and these are being kept under constant review.

BUSINESS REPORT ONLINE

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