Leifheit Aktiengesellschaft: Leifheit presents a new Group strategy, stable turnover for the Group and significant growth in its Brand Business in 2014
Leifheit Aktiengesellschaft / Key word(s): Development of Sales/Miscellaneous
P R E S S R E L E A S E
Leifheit presents a new Group strategy, stable turnover for the Group and significant growth in its Brand Business in 2014
Nassau, Germany 12 February 2015 - According to preliminary figures, the Leifheit Group has met its forecasts and finished the 2014 financial year recording a Group turnover of EUR 220.7 million, which represents an increase of 0.5% compared to the comparative previous year's figure of EUR 219.5 million. The company was able to achieve these stable figures despite various obstacles, such as the difficult competitive environment and different performances, both in the product segments and in the individual regions.
Significant gains have been achieved not only in Germany, but also in Poland, the Czech Republic and Slovakia. Also in Italy and Spain, Leifheit recorded positive momentum. On the other hand, but in line with expectations, the markets in Russia and the Ukraine showed negative developments; declining turnover was likewise reported in France and in the regions outside Europe.
In its strategically important Group segment Brand Business, Leifheit generated a turnover of EUR 180.4 million in 2014. This represents a significant increase of 4.4%. On the other hand, the company's smaller Volume Business recorded a decline in turnover of 13.8% and generated EUR 40.3 million, these figures reflecting expectations.
The Leifheit Group will present its final figures for the year 2014 when it submits its complete annual financial report on 26 March 2015. However, well in advance on 29 January 2015, the Board of Management adjusted its forecast for operating earnings upwards; its new forecast, partly based on exceptionally positive foreign currency results of EUR 5 million for 2014, is a consolidated Group EBIT of EUR 21-22 million compared to EUR 14.9 million in the previous year.
The "Leifheit 2020" strategy is already making its mark on plans for 2015
The Leifheit AG Board of Management took the opportunity to unveil a revised Group strategy and the "Leifheit 2020" vision at the time of presenting its preliminary figures for 2014. "In essence, we are positioning the Leifheit brand in the future as the experts for easy and convenient clean and care in the household. At the same time, the Soehnle brand will be significantly strengthened and aligned more closely with the core brand. We are therefore continuing our efforts to improve profitability and to strengthen our brands; at the same time, we set new impulses for our future product range," according to Thomas Radke, CEO of Leifheit AG.
A significant focus of the strategy is to attract additional target groups through a holistic category approach in the core categories of clean and care including new price segments. Leifheit wants to pave the way to success by aligning its entire value chain to consumer needs and to boost its investment in innovation, development and marketing power.
"What that means for us specifically is that we will become the leading experts on solutions that make everyday life at home more easy and convenient," explained Thomas Radke. As part of this strategy, Leifheit will also aim to address individual purchasing behaviour. "We will focus on our target groups wherever they buy their household items, both in physical shops and online. Consumers who are looking for quality branded products need look no further than the products offered by Leifheit and Soehnle. However, in future we will also cater for the quality-conscious consumer looking for mid-priced products." The company also provides retailers with tailored solutions for differentiation as part of its POS excellence initiatives.
The new strategic guidelines have given a clear focus for the current 2015 financial year. Therefore, for the financial year 2015 the Board of Management expects a stable turnover for the Leifheit Group, Brand business growth between 1 and 3% and EBIT at the same level as for 2014 after adjustments for foreign currency results.
New product ideas at the Ambiente trade fair
Every year, Leifheit exhibits its latest trends and innovations at the Ambiente international consumer goods fair in Frankfurt. This year, Leifheit will show the new range of Xtra Clean brooms with their X-shaped arrangement of bristles, thus further expanding its range of cleaning products. Additionally, Leifheit will exhibit the new generation of its successful window vacuum cleaner - which has already been honoured with the Plus X Award 2015 - the latest all-in-one ironing board "AIR" systems range, and its new dryer models. The Soehnle brand is represented by numerous new designs for kitchen and bathroom scales.
Leifheit AG was founded in 1959 and 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 two of the most well-known brands in Germany. Apart from its Brand Business, Leifheit AG also operates in the service-based Volume Business through its French subsidiaries Birambeau and Herby. The Leifheit Group and its international branches combined have around 1,000 employees. More information on Leifheit can be found online at www.leifheit-group.com, www.leifheit.com and www.soehnle.com.
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