Leifheit AG: Leifheit AG significantly increases profitability

Leifheit AG  / Key word(s): Quarter Results

14.11.2011 07:34

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- 5.7 % growth in turnover in the first nine months of 2011
- Operating results outstrip turnover with 10.1 % growth
- Despite the downturn in the economic outlook, double-digit annual results
expected

Nassau, 14 November 2011 - The Leifheit Group increased consolidated
turnover in the first nine months of 2011 from EUR 156 million by 5.7 % to
EUR 165 million. Over the same period, EBIT rose significantly faster,
growing 10.1 % from EUR 6.4 million to EUR 7.1 million. The high EBIT
growth is particularly satisfactory, as high commodity prices were still
weighing heavily on results, particularly in the Volume Business segment.
The result after tax rose 67.2 % from EUR 3.6 million to EUR 6.0 million.

Georg Thaller, Chairman of the Board of Management of Leifheit AG:
'Leifheit was on track in the first nine months of the current financial
year. The numbers show that we are consistently following our principle of
profit before size. This is a central goal of our three-year growth
programme, which started in January.'

Strong German economy reflected in turnover

The German market was the driver of the overall growth in consolidated
turnover in the first nine months of 2011. The domestic share of sales rose
from 43 % to 44 %. By contrast, there was a negative trend in several
European markets and the overseas markets, as a result of significant
deterioration in the overall economic situation. The positive trend in the
German economy, compared to other countries, the stable labour market and
the continuing willingness to buy of German consumers were all evident
here.

Brand Business maintains stable growth 

Leifheit's business comprises the segments Brand Business (Leifheit, Dr
Oetker Bakeware and Soehnle) and Volume Business (Birambeau, Herby and
project business). As in the first two quarters, the Brand Business segment
maintained stable growth in turnover. In the first nine months of 2011,
Leifheit grew turnover in this segment by c. 5 % to EUR 129 million, from
EUR 123 million in the comparable period in 2010. The share of Brand
Business in consolidated turnover was more or less unchanged from the
previous year at 78 %. While domestic turnover rose, developments in other
regions varied widely in the period under review, depending on the local
economic situation. In terms of the Leifheit Group's various product
categories, the areas of cleaning, laundry care and wellbeing were the
drivers of growth in Brand Business. EBIT in Brand Business grew
substantially as expected, rising from EUR 2.6 million to EUR 4.3 million.

Volume Business growing by c. 9 % 

As in the previous year's quarter, Volume Business showed strong growth,
with turnover up by c. 9 % year-on-year at EUR 36 million. The segment's
share in consolidated turnover accordingly rose slightly from 21 % to 22 %.
The main growth in Volume Business is in foreign business, mainly France
and the US. However, growth in domestic turnover in the past nine months
has also been extremely satisfactory, with particularly strong growth in
the laundry care category. Despite the significant increase in turnover,
EBIT in Volume Business lagged behind the previous year's figure, falling
from EUR 3.8 million to EUR 2.8 million. Besides one-off costs of closing
down a production plant in Tunisia, results in Volume Business were hit
particularly by increased commodity prices.

Forecast for full-year 2011 confirmed

With its focus on household products, the Leifheit Group is well positioned
in the current economic environment to grow as planned. Leifheit is
demonstrating its innovative strength with products such as the Soehnle
'Relax' range with the new massage chairs, the 'Page Evolution' kitchen
scales (winners of the iF Product Design Award 2012) and the innovations in
the area of steam ironing. These products were recently presented at the
Berlin IFA, and were very warmly received by the trade, so that additional
growth in turnover can be expected in these areas. In addition, the
repositioning of the kitchen category as part of the renewed umbrella brand
and product range strategy under the Three-Year Programme, should provide
further stimulus from 2012.

Despite the global economic slowdown, Leifheit still expects growth in
turnover of 3-5 % for full-year 2011. Looking at changes in raw materials
prices in the past months, no further impact is currently expected on
results in the fourth quarter. The adjustments in selling prices which
Leifheit has been making since the third quarter of 2011 have also partly
offset the increase in raw materials prices. Georg Thaller: 'We expect
double-digit EBIT in 2011, confirming our long-term growth course'.

Additional information is available in the interim report for the period
ending 30 September 2011, and at
http://www.leifheit.de/en/investor-relations/publications/financial-report
s.html.



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





14.11.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language:     English
Company:      Leifheit AG
              Leifheitstraße
              56377 Nassau
              Germany
Phone:        02604 977-0
Fax:          02604 977-340
E-mail:       ir@leifheit.com
Internet:     www.leifheit.com
ISIN:         DE0006464506
WKN:          646450
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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