Leifheit Aktiengesellschaft: Positive business development continues for Leifheit
DGAP-News: Leifheit Aktiengesellschaft / Key word(s): 9-month figures/Quarter Results
Positive business development continues for Leifheit
Nassau, 11 November 2015 - In 2015 business development continues to be positive for the Leifheit Group, with turnover and results experiencing a further increase in the third quarter of the year. In the first nine months, turnover increased by 7.1% to EUR 173.2 million compared to the same period of the previous year. As was the case during the first half of 2015, the robust growth with the Leifheit brand had a particularly strong impact on turnover in the domestic market. With 44.5%, Germany still has the largest share of turnover for the group. Above-average growth in individual Central European markets and significant growth in the Middle East, the Far East, Australia and South America also had a positive impact on results. Furthermore the pipeline filling activities at a new retail partner in France in the Volume Business segment contributed to the growth during the third quarter.
'The positive development experienced during the first three quarters of 2015 can be linked back to our 'Leifheit 2020' group strategy. These results provide further encouragement as we implement this strategy. We will now focus on expanding Brand Business and stabilising Volume Business, with the overall aim of accelerating the Group's growth', says Thomas Radke, CEO of Leifheit AG.
Leifheit Group EBIT continues to improve
In the reporting period, the Leifheit Group's EBIT increased by 10.8% to EUR 17.9 million compared to EUR 16.2 million in the previous year. The EBIT margin is 10.4%. As a result of the growth in turnover within the course of the business year, the group therefore benefited from increasing contribution margins.
After deduction of taxes, the net result for the first nine months of 2015 amounted to EUR 11.9 million, representing an increase of 12.2% on the previous year's figure (EUR 10.6 million).
Brand Business turnover continues to grow strongly
In the first three quarters of 2015, Brand Business turnover increased by EUR 9.0 million to EUR 142.7 million. The segment in which Leifheit and Soehnle products are offered registered an increase in turnover of 6.7% compared to EUR 133.7 million in the same period of the previous year.
The continued growth of Brand Business turnover is principally due to increasing demand for Leifheit branded products, primarily in the Cleaning category. E-commerce has also aided growth in this segment, which once again hit double digits during the first nine months of the business year.
Brand Business' share of Group turnover amounted to 82.4%, which is approximately in line with figures from the previous year. During the reporting period, segment EBIT increased by 9.2% to EUR 14.5 million.
Volume Business benefits from strong growth in France
In the first nine months of 2015, Volume Business turnover amounted to EUR 30.5 million compared to EUR 28.0 million in the previous year. The positive development experienced during this reporting period is based on the good development of Leifheit AG's French subsidiaries, Birambeau and Herby, in the Kitchen and Laundry Care product categories. A positive one-time effect had a significant impact on turnover during the third quarter due to pipeling filling activities with Birambeau kitchen goods at a new commercial client. Project Business in the USA, however, continued to decline during the same reporting period.
At the end of the third quarter, Volume Business' share of Group turnover amounted to 17.6%. The segment EBIT reached EUR 3.4 million, 18.1% over the previous year's figure of EUR 2.9 million.
Outlook for 2015: forecast specified
After positive business development in the first three quarters of the year, Leifheit expects Group turnover to increase by approximately 4% in 2015. Brand Business will be strengthened through the expansion of Leifheit's product portfolio, which will focus on developing comprehensive product systems to form the basis for accelerated organic growth. Turnover in this area during 2015 should increase by approximately 5%. The group aims to stabilise Volume Business in line with its long-term strategy for growth, 'Leifheit 2020', and is therefore acting on the assumption that development will be stable during the current business year.
Against a backdrop of continuing positive business development and assuming that economic conditions in the Group's target markets remain stable, the Leifheit Group has specified its earnings forecast for 2015 and expects an EBIT about EUR 20 million.
Further information can be found in the Leifheit quarterly financial report for the period ending 30 September 2015, which is available online at http://financial-reports.leifheit-group.com.
Leifheit AG, founded in 1959, 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. The Leifheit Group including its international branches employs a staff of about 1,000 employees. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.com, www.soehnle.com.
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