Leifheit Aktiengesellschaft: Consistent implementation of 'Leifheit 2020' group strategy shows first results


Corporate News

DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Development of Sales

2016-02-11 / 09:30
The issuer is solely responsible for the content of this announcement.


Consistent implementation of "Leifheit 2020" group strategy shows first results

- Preliminary figures for 2015 show 5% growth in group turnover

- Turnover forecast of 4% exceeded

- Earnings forecast with EBIT of more than EUR 20 million confirmed

Nassau, 11 February 2016 - Leifheit AG achieved group turnover of EUR 231.8 million in the business year 2015. This represents an increase of 5.0% compared to the previous year (EUR 220.7 million) and exceeds the company's growth target of 4%. Early effects of the "Leifheit 2020" group strategy, introduced early in 2015, and the expansion of the company's customer base in France contributed significantly to the latest results. This is made clear by the preliminary figures published today.

Europe continues to be a growth driver in the two segments Brand and Volume Business. The Group recorded turnover growth of 3.9% in Germany and 7.7% in Central Europe. Continuing the trend of previous year, the markets in Russia and Ukraine recorded a downturn. However, this macroeconomic-driven development was offset by significant growth in the Czech Republic and Poland. In total, turnover in the Eastern Europe region was 0.8% higher than the previous year. Outside Europe, the Leifheit Group recorded a slight decrease in turnover of 0.9%.

The strategically important Brand Business achieved significant growth in 2015, with turnover reaching EUR 188.1 million by the end of the business year. This represents an increase of 4.3% over the previous year's figure of EUR 180.4 million. The continued growth of Brand Business turnover is principally due to increasing demand for Leifheit products, primarily in the cleaning category. E-commerce has also aided growth in this segment, which once again reached double figures.

Also the much smaller Volume Business achieved growth of 8.6% compared to the previous business year, recording turnover of EUR 43.7 million in 2015. The segment benefited from strong growth of the Birambeau and Herby subsidiaries in France in the product categories kitchen and laundry care. Turnover was also positively impacted by a one-off effect caused by the initial supply of a new customer with Birambeau kitchen products.

"We are consistently working on the implementation of our new strategy, "Leifheit 2020", and are delighted to already see its first successes in the market. This shows us that we are on the right track, even if we still have a long way to go," says Thomas Radke, CEO of Leifheit AG.

The preliminary turnover figures confirm Leifheit's earnings forecast for the last business year, which was concretised in November 2015 with the prediction that an EBIT of more than EUR 20 million would be comfortably achieved. The company will present its final figures for 2015 with the submission of its full-year financial report on 31 March 2016.

The first successes of "Leifheit 2020"

The past business year saw the launch of the "Leifheit 2020" group strategy and the implementation of its strategic guidelines across the company for achieving sustainable growth.

These include the "Innovation Factory", a holistic innovation strategy based on a medium-term roadmap of innovative products and significant growth potential designed to support the company's growth over the coming months and years. In addition, the company has further strengthened its design expertise while maintaining high product quality and revised its brand positioning.

"In 2015, we once again demonstrated our continuous stream of innovation - for example, with the introduction of the Soehnle Genio Kitchen Scale," Radke adds. The space-saving kitchen scale not only won the Kitchen Innovation Award 2016 and the "Best of the Best" Golden Award, but also scooped the IF Design Award.

Leifheit presents new initiatives at this year's Ambiente

The path adopted in the sector of innovation will be revealed by the new products on show at the Ambiente Consumer Fair in Frankfurt. The company's latest products and solutions will include innovations in ironing board covers and the Leifheit mop range. With the new Colour Edition, Leifheit and Soehnle will create colourful accents in their laundry care, kitchen and bathroom ranges. In addition, the company will present a new campaign under the slogan "Experience the Leifheit effect".

About Leifheit

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. In addition to the Brand Business, Leifheit AG operates in the service-oriented Volume Business via its French subsidiaries Birambeau and Herby. The Leifheit Group and its international branches combined have around 1,000 employees. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.

Leifheit AG
D-56377 Nassau
+49 2604 977218

2016-02-11 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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