Report
Victor Dima
EUR 7.30 For Business Accounts Only

SNH GR reports neutral organic growth of 7.6% y/y in Q1 17A

SNH group revenue grew by 45.5% y/y (slightly below ACe: +46.6% y/y) to EUR 5.33bn (ACe: EUR 5.38bn) in Q1 17A, driven by the inclusion of Mattress Firm - MFRM (c.17.0% of revenue) and Poundland (c.8.0% of group revenue) contributing c.35% y/y to SNH’s 45% y/y top-line growth (ACe: 35% y/y). The group reported organic growth of 7.6% y/y.

·General Merchandise - GM (c.27% of group revenue) growing by 66.0% y/y (ACe: 52.0% y/y) mainly driven by the Poundland acquisition. organic growth for the segment was c.17% y/y (ACe: c.10% y/y).

·Household Goods (c.63% of group revenue) revenue grew by 40.8% y/y slower than ACe: c.49% y/y to EUR 3.2bn. This high growth was largely due to the inclusion of Mattress Firm – MFRM contributing c.33% to the segment’s revenue growth. Household Good’s organic growth was 3.8% y/y (ACe: 4.0% y/y), excluding both MFRM and Kika-Leiner.

Underlying
Steinhoff Holdings GR

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Victor Dima

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