Leifheit Aktiengesellschaft: Significant growth in earnings - EBIT forecast increased

10
November
2014

Corporate News


Leifheit Aktiengesellschaft / Key word(s): 9-month figures/Quarter Results

10.11.2014 / 08:23


Leifheit AG: Significant growth in earnings - EBIT forecast increased

- Stable group turnover of EUR 161.7 million
- Forecast shows 2.5% growth in the Brand Business
- Gross margin increases to 47.1%
- EBIT also improves to EUR 16.2 million due to currency effects
- Earnings forecast increased for the entire year, turnover target unchanged

Nassau, 10 November 2014 - Against the backdrop of the worldwide economic downturn, Leifheit's turnover development remained constant in the first three quarters of 2014 in comparison to the same period from the previous year and reached EUR 161.7 million. In accordance with the premise of "Brands and Margins" the Group's gross margin increased in the reporting period by 3.2 percentage points to 47.1% compared to the corresponding period of the previous year.

"We have consistently pressed forward with our announced operative measures for improving profitability and strengthening the Brand Business," explained Thomas Radke, chairman of the board of management at Leifheit AG.

The significant increase in earnings (EBIT) to EUR 16.2 million in comparison to the previous year's yearnings of EUR 6.6 million was particularly supported by the development of the
US dollar. The profit included positive effects from the foreign currency gains amount to
EUR 4.4 million (previous year: EUR -1.0 million). With a value of 10.0%, the EBIT margin is significantly above the level from the previous year (4.0%). The Group's net result for the period after tax amounted to EUR 10.6 million for the first nine months of the current financial year. The company was thereby able to significantly exceed the previous year's value of EUR 4.1 million as well.

Positive development in the Brand Business

The turnover of the Brand Business in which the products of the brands Leifheit and Soehnle are marketed grew by 2.5% in comparison to the previous year to a total of EUR 133.7 million. The company achieved the growth primarily through increased activities in the cleaning and laundry care categories under the Leifheit brand. The segment earnings (EBIT) grew from EUR 5.6 million in the previous year to EUR 9.4 million after adjustment for foreign currency results.

Volume Business continues to focus on profitability

The strategic concentration on the Brand Business led to a drop in business volumes in the smaller Volume Business segment. With a turnover of EUR 28.0 million, the company reported a decrease of around 12.4% in the Volume Business in comparison to the previous year. Leifheit conducts the Volume Business from the perspective of profitability. This made itself felt in the current financial year in the form of improved operative earnings: The segment earnings (EBIT) amounted to EUR 2.4 million after adjustment for foreign currency results, having earned EUR 2.0 million in the previous year.

Earnings forecast increased, turnover target unchanged

Overall for this year we expect a turnover on the Group level to be equivalent to the adjusted amount of the previous year. Leifheit is thereby adhering to its turnover forecast for 2014. The Group forecasts an increase in turnover of 1-3% in the Brand Business. A continued negative turnover development is expected for the Volume Business.

The Board of Management of Leifheit AG is increasing its earnings forecast for the entire year (EBIT) due to the increased foreign currency results and increased margins. Under the premise that the exchange rate for the US dollar will remain unchanged until the end of the year, the company expects a significant increase in the EBIT to EUR 18-19 million. The company previously assumed a value at the level of 2013 (EUR 14.9 million).

You will find additional information in the quarterly financial report from 30 September 2014 or at http://ir.leifheit-group.com/websites/leifheit_ir/English/3100/financial-reports.html.



About Leifheit

Founded in 1959, Leifheit AG is one of the leading European brand suppliers of household items. The company stands for high-quality, innovative products with great utility and pioneering design in the sectors of cleaning, laundry care, kitchen goods and wellbeing. Leifheit and Soehnle are among the best-known brands in Germany. Other than in the Brand Business, Leifheit AG operates in the service-oriented Volume Business via its French subsidiaries Birambeau and Herby. Taking into account its international branches, the Leifheit Group has around 1,000 employees in total.



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




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