Leifheit Aktiengesellschaft: Leifheit remains on track for growth
DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Half Year Results
Leifheit remains on track for growth
Nassau, 11 August 2016 - The Leifheit Group continued its growth course in the first half of 2016, generating turnover of EUR 121.1 million. This equates to a year-on-year rise of 7% from the previous year's figure of EUR 113.2 million. The Brand Business and Volume Business segments continued to expand in the first six months of the year. Turnover from international business increased substantially, climbing by 18.6% to EUR 70.1 million. The share of turnover generated abroad stood at 57.9%. This trend was influenced in the first half of the year by the relocation of a key mail order company from Germany to Luxembourg.
"We were able to increase our turnover considerably once again in the first half of the year and successfully pursue the growth course we have embarked upon, especially abroad," said Thomas Radke, CEO of Leifheit AG. "Turnover in our target region of Eastern Europe was particularly pleasing. This positive development is a further testament to the importance of this region in our efforts to achieve the goals laid out in the 'Leifheit 2020' strategy. It is also an affirmation that we made the right decision to establish a separate logistics centre for this growth region."
Significant improvement in consolidated operating Group EBIT
Growth at the Leifheit Group also continues to bear fruit in terms of earnings. The contribution margins from the increased turnover and the increase in the relative gross margin resulted in gross profit rising by EUR 5.4 million to EUR 57.6 million. As in the first quarter of 2016, consolidated Group EBIT was also influenced by the negative foreign currency result in the second quarter. The development of the US dollar and the HK dollar towards the end of the first half of the year led to a negative foreign currency result of EUR 1.0 million. By contrast, the Group benefited from a positive foreign currency result of EUR 1.9 million in the same period last year. As a result, Leifheit generated earnings before interest and taxes (EBIT) of EUR 10.1 million in the first half of the year, down from EUR 10.4 million in the same period last year. In operating terms, earnings actually improved considerably. Adjusted for the foreign currency result, EBIT rose from EUR 8.5 million to EUR 11.1 million. The adjusted EBIT margin rose to 9.2%.
After taxes, the Leifheit Group generated a net result for the period of EUR 6.6 million, down from EUR 6.8 million in the same period last year.
Brand Business grows in all product categories
The Leifheit Group reported a 7.5% increase in turnover to EUR 103.1 million in its strategically important Brand Business segment, which includes the Leifheit and Soehnle brands. This growth was generated across the board in all product categories. Once again, Leifheit cleaning products were the source of the highest growth levels, generating a double-digit increase in turnover. The floor cleaning and window vacuum cleaner range played a major role in this respect, and enjoyed particular success in international markets. Healthy growth was also achieved with Leifheit laundry care and kitchen products. Turnover with Soehnle products, particularly Soehnle kitchen and bathroom scales, rose year-on-year. Turnover in the e-commerce sales channel also developed extremely well, rising by 30.6% year-on-year. Brand Business' total share in Group turnover remained practically unchanged at 85.1%. The segment's EBIT came to EUR 8.8 million in the first half of the year, down from EUR 9.1 million in the previous year. Adjusted for the foreign currency result, EBIT increased by EUR 1.3 million to EUR 9.6 million.
Volume Business grows through expanded customer base
In the Volume Business segment, which encompasses subsidiaries Herby, Birambeau and project business, Leifheit's turnover rose by 4.4% to EUR 18.0 million compared to the same period in the previous year. Turnover involving Birambeau kitchen products in France rose by a double-digit margin in the reporting period. As in previous quarters, Birambeau benefited from the new customer it has been supplying since the third quarter of 2015. In addition, project business in the United States was significantly expanded. This segment's share in Group turnover was practically unchanged at 14.9%, with segment EBIT coming to EUR 1.3 million as in the previous year. Adjusted for the foreign currency result, EBIT increased by EUR 1.3 million to EUR 1.5 million.
Forecast confirmed for operating result, expectations adjusted for foreign currency result
Leifheit AG continues to expect Group turnover growth of between 3 and 4% in financial year 2016. In the Brand Business segment, which is at the heart of the "Leifheit 2020" strategy, the company expects to boost turnover by 4 to 5%. Leifheit anticipates turnover in the Volume Business segment to remain on a par with the previous year.
The operating result forecast remains unchanged; however, the company believes that the positive foreign currency result of roughly EUR 1 million underpinning the forecast will not materialise due to exchange rate movements. Now the Group expects to see earnings before interest and taxes (EBIT) come in at between EUR 21 million and EUR 22 million.
For more information, please refer to the half-year financial report as at 30 June 2016, which is available at http://financial-reports.leifheit-group.com.
Established in 1959, Leifheit AG is one of the leading European brand suppliers of household items. The company is synonymous with high-quality, innovative products that are convenient and functional in design. It focuses on the product categories of cleaning, laundry care, kitchen goods and wellbeing. Leifheit and Soehnle are among Germany's most well-known brands. Besides its Brand Business segment, Leifheit AG also engages in service-oriented volume business through its French subsidiaries Birambeau and Herby. Taking into account its international branches, the Leifheit Group employs around 1,000 employees. For further information on Leifheit, please visit the websites www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
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