Leifheit AG: Earnings increase by 52% in first half of 2012

09
August
2012

Corporate News


Leifheit AG / Key word(s): Half Year Results

09.08.2012 / 09:35


Leifheit AG: Earnings increase by 52% in first half of 2012

- Group EBIT increases from EUR 3.4 million to EUR 5.1 million

- Group turnover slightly below previous year's level

- 2012 earnings forecast confirmed


Nassau, 9 August 2012 - The Leifheit Group posted turnover of EUR 110.5 million in the first half of 2012, slightly below the prior-year level of EUR 111.4 million. In contrast to this, EBIT of the Leifheit Group increased considerably by 51.9% from EUR 3.4 million to EUR 5.1 million. Unrealised currency effects from the measurement of forward foreign exchange contracts totalling EUR 0.5 million had a negative impact on EBIT in the same period of the previous year. Adjusted for this effect, the comparable figure for the previous year was EUR 3.9 million, leading overall to a considerable increase of 33.4% in EBIT. Successful optimisation measures and focusing on high-margin business as part of the 'Leifheit GO!' business strategy are responsible for this significant improvement.

After taxes, the company generated EUR 3.5 million in net result for the period, more than double the prior-year amount of EUR 1.7 million. 'Despite the moderate development in turnover in the first half of 2012, our efforts to generate higher efficiency and strengthen the margins are having beneficial effects. Increased profitability is the result of our business strategy', stated Georg Thaller, CEO of Leifheit AG.

Focus markets with vastly different development

As one of the leading European suppliers of branded household items, Leifheit's turnover is heavily dependent on consumer confidence in different sales markets. For this reason, the European sovereign debt crisis greatly affected Leifheit's turnover, especially in the southern European countries. In contrast, some of the company's focus markets that were not so hard-hit by the crisis performed well, for example, the Netherlands, Austria, Russia and France. Leifheit increased turnover by 4.0% overall in Europe excluding Germany. In Germany, turnover declined by 2.8%. In particular, poor weather in the spring months had a negative influence on business with rotary driers.

Brand Business grows, Volume Business deteriorating

Business from the Leifheit, Dr. Oetker Bakeware and Soehnle brands was the pillar of Group turnover development in the past half-year as well. Brand Business deteriorated in Southern Europe, but performance in other markets offset this. For example, turnover from Brand Business in the first half of 2012 was EUR 90,0 million, or up by 1.6% from the previous year. Its share of Leifheit's total turnover further increased in line with strategic corporate decisions and reached 81.4%. The Group recorded a decline in turnover of 10.4% to EUR 20.5 million in the Volume Business. This development is mainly due to a decline in Project Business with a US customer.

Forecast turnover adjusted, earnings forecast confirmed

Due to the decreasing momentum of the global economy and the ongoing negative influence of the debt crisis on consumer confidence in Europe, Leifheit believes its own economic prospects have worsened. 'Even though we consider ourselves to be well positioned: We cannot escape increasing consumer restraint, which is due in large part to the ongoing sovereign debt crisis in Europe', explained Thaller. The forecast turnover was therefore adjusted. The turnover objective for 2012 as a whole is now for 2% growth. The company also continues to assume that it can generate an increase of more than 10% in adjusted EBIT for financial year 2012 and thus confirmed the forecast of a strong earnings upturn. The prerequisite for this is a stronger exchange rate for the euro vis-à-vis the US dollar.

About Leifheit

Formed in 1959, Leifheit AG is one of the leading European suppliers of branded household items. The Company is a byword for high quality innovative products with high consumer benefit and pioneering design in the core areas of cleaning, laundry care, kitchen and wellbeing. Leifheit, Dr Oetker Bakeware and Soehnle are among the best-known German brands. Besides its Brand Business segment, Leifheit AG is active in the service-oriented Volume Business segment through its French subsidiaries Birambeau and Herby. With its international branches, the Leifheit Group has around 1,100 employees.

Additional information can be found in the half-yearly financial report as at 30 June 2012 and at http://www.leifheit.de/en/investor-relations/publications/financial-reports.html.

Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218



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