INTRODUCTION
The Group reported another strong performance
for the half year ended 31 March 2022 with a 12%
increase in revenue from continuing operations to
€5 152 million (1H2021: €4 585 million).
EBITDA from continuing operations increased
by 13% to €760 million (1H2021: €675 million),
reflecting the improved sales as well as good
expense management. Similarly operating
profit adjusted for material non-operational
items (“EBIT”) increased by 12% to €421 million
(1H2021: €376 million).
The disruptions to the businesses mainly as
a result of COVID-19 lockdown regulations
over the past two years continued to present
varying challenges. The lockdown regulations
themselves have fluctuated in the various
countries, resulting in unusual trading patterns
as restrictions are imposed or lifted. Operating
performance, when reviewed over a longer
period, and taking into account the various
specific restrictions, has continued to improve.
The war in Ukraine escalated during the
Reporting Period and has caused significant
disruption and uncertainty. The Pepco Group
is monitoring developments actively and has
focussed on the safety and wellbeing of both
employees and customers. In South Africa
flooding, linked to climate change, caused
widespread damage in and around Durban in
April 2022. These factors are all contributing
to further supply chain constraints and
challenges. The rising inflationary outlook
together with increasing interest rates are
putting both consumers and businesses under
further pressure. The markets within which we
operate are likely to remain volatile in the near
term due to these ongoing challenges.
Management within the operations
continued to focus on cashflow, operational
improvements and the supply chain. Both
Pepco Group and Pepkor Holdings are also
continuing to expand their footprints.
Mattress Firm is considered to be an associated
company as the Steinhoff Group owned 50.1%
(before management incentive share dilution)
as at 31 March 2022 (31 March 2021: 50.1%)
and as such it is equity accounted, and not
consolidated, into the results of Steinhoff N.V.
Simplification of the portfolio has been a key
objective of the Group over the past few years.
This operational review covers the continuing
operations only and comparatives have been
restated where appropriate.