Leifheit Aktiengesellschaft: Solid start to financial year 2023
/ Key word(s): Quarterly / Interim Statement/Quarter Results
Leifheit AG: Solid start to financial year 2023
Nassau, 11 May 2023 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, began the new financial year 2023 in solid shape despite ongoing challenges in the market environment. In the first three months of 2023, the Leifheit Group achieved turnover of EUR 70.3 million. At -2.1%, turnover was only slightly down on the previous year’s figure of EUR 71.8 million and at the same time represented the third-highest sales in a first quarter within the last 15 years.
Earnings before interest and taxes (EBIT) stood at EUR 2.3 million in the first quarter of 2023 (Q1 2022: EUR 2.7 million). The decline was mainly attributable to the lack of contribution margins following the fall in turnover, as well as a lower foreign currency result combined with high procurement costs. Leifheit is countering these effects with measures to boost efficiency and cut costs. Less taxes, this equalled a net result for the period of EUR 1.3 million in the first quarter of 2023 (Q1 2022: EUR 1.8 million).
In the Household segment, the Leifheit Group’s turnover decreased slightly by 1.6% to a total of EUR 58.5 million in the first quarter of 2023 (Q1 2022: EUR 59.5 million). Accordingly, the share of Group turnover accounted for by this segment amounted to 83.2% in the reporting period, compared to 82.7% in the same period of the previous year. Both the cleaning and the kitchen goods categories fell short of the turnover they generated in the first quarter of 2022. At the same time, opportunities arose for the Leifheit Group through stronger demand from consumers for household products with a lower energy and carbon footprint. Leifheit is ideally positioned to serve this trend with products such as the Linomatic rotary dryers and Pegasus drying racks. Therefore, despite the historically low consumer climate in key target markets, the laundry care category achieved significant turnover growth.
In the Wellbeing segment with the Soehnle brand the Leifheit Group recorded turnover of EUR 4.2 million (Q1 2022: EUR 4.7 million). This represents a drop of 11.0% compared to the first quarter of 2022. The share of Group turnover attributable to this segment therefore amounted to 6.0% (Q1 2022: 6.6%). In the reporting period, business activities in this segment were again dominated by difficult overall conditions and consumer restraint. At the same time, however, Soehnle remains the clear market leader for bathroom and kitchen scales in Germany.
In the Private Label segment, which mainly comprises sales of private-label brands by the French subsidiaries Birambeau and Herby, turnover was roughly on a par with 2022, falling by 0.4% to EUR 7.6 million in the first quarter of 2023 (Q1 2022: EUR 7.6 million). While Birambeau’s kitchen products recorded slight declines in turnover in the first quarter, Herby’s energy-saving laundry dryers saw a slight growth.
The Leifheit Group continues to face a challenging market environment. The consequences of the Russia-Ukraine war and ongoing inflation concerns are weighing on economic development and consumer demand. High energy and commodities prices, along with the persistently tense situation on the global procurement markets, are likely to continue putting pressure on the Leifheit Group’s earnings development. In light of this, the Board of Management of Leifheit AG continues to forecast a slight year-on-year decline in Group turnover for financial year 2023 and positive earnings before interest and taxes (EBIT) in the low single-digit million-euro range. On this basis, free cash flow is also expected to be in the lower single-digit million-euro range.
Further information can be found in the quarterly statement for the period ending 31 March 2023, available at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/.
Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The Leifheit Group divides its operating business into the Household, Wellbeing and Private Label segments. Leifheit and Soehnle products – two of Germany’s best-known household brands – are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
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11.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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1629997 11.05.2023 CET/CEST