Leifheit AG: Leifheit is earning more and increasing dividends
Leifheit AG / Key word(s): Final Results
P R E S S R E L E A S E
Leifheit is earning more and increasing dividends
- Operating results (EBIT) up 15.2% on the adjusted results for the previous year
- Net result for the period up 9.2%
- Dividend proposal EUR 1.65 per share
- Stable growth predicted for the Group
Nassau, 27 March 2014 - Leifheit AG's audited annual financial report for the financial year 2013 confirms its preliminary figures of a slight increase in turnover. Group turnover rose accordingly on an adjusted basis* from EUR 217.4 million in the previous year to EUR 219.5 million, an increase of 1.0%. By contrast, the operating result (EBIT) rose very strongly by 15.2%. It reached EUR 14.9 million following on from an adjusted result* of EUR 13.0 million in 2012. As a result, the EBIT margin also recorded a significant year-on-year rise from 5.8% to 6.8%. Overall, the Leifheit Group reported a net result for the period after tax of EUR 10.2 million in the 2013 financial year. This represents an increase of 9.2% on the previous year from EUR 9.4 million.
"When I took up my post in January 2014, I found a company with a very healthy economic and financial structure. This provided the best possible starting point for moving forward and driving top-line growth significantly," comments Thomas Radke, Chairman of the Board of Management of Leifheit AG.
As at the 2013 balance sheet date, the Leifheit Group reported an equity ratio up 1.5% on the previous year at 46.5%. Leifheit also reported Group liquidity of EUR 52.0 million as at the balance sheet date, a rise of EUR 15.0 million on 2012. The Group has no bank liabilities.
Brand Business generates the majority of growth as planned
In line with the company's strategy, Leifheit reported a slight increase in the turnover of Brand Business segment in 2013 with EUR 172.8 million. Year-on-year growth was 1.1%. Cleaning, the second largest product category according to turnover, contributed strongly to this result with a 12.8% increase in turnover.
The operating result (EBIT) for the Brand Business reached EUR 10.7 million. By contrast, this figure was EUR 9.0 million in the previous year. Overall this segment generated 72.0% of the Group's turnover.
Volume Business remains stable as forecast
In the Group's second largest segment, the Volume Business, the company reported a generally stable turnover. Turnover rose from EUR 46.5 million in the previous year to EUR 46.7 million in the 2013 financial year. French subsidiary Herby contributed the most overall to this stable turnover in the Volume Business, with a 6.8% increase.
EBIT for the Volume Business was EUR 4.2 million in the financial year ending, compared to EUR 4.0 million in 2012. This accounted for a share of 28% of the Group's EBIT.
Dividend increase to EUR 1.65
The Board of Management and Supervisory Board of Leifheit AG are set to propose a dividend of EUR 1.65 per Leifheit share to the shareholders at the Annual General Meeting on 22 May 2014. This dividend proposal represents a 10.0% increase on the previous year, which saw a dividend distributed of EUR 1.50 per share.
Stable growth expected for the Group in the current financial year
Leifheit is set to continue its "Leifheit GO!" strategy in 2014. Within the framework of this strategy, Leifheit will continue to focus on organic growth by concentrating efforts on the current strategic target markets, by strengthening its presence in Turkey from the end of 2014, by continuing its intensive expansion of e-commerce sales channels, by strengthening its innovative capacity with a focus on consumer-relevant products and by honing our brand appearance through brand and communication strategies, with a particular focus on presence at the point of sale.
In 2014 business development of the Leifheit Group will once again depend significantly on the development of framework conditions in the core regions of Europe. The forecast is therefore based on assumptions that the conditions in these regions will continue to improve slightly, in line with the most recent trend, and that commodity prices will remain relatively stable.
"Based on these assumptions we are pursuing a conservative target for 2014 based on stable development. At Group level we are expecting turnover similar to the previous year's adjusted figures. We will place the Brand Business at the heart of our activities and aim to further improve the profitability of our Volume Business. In 2014 the focus for Leifheit will be on brand and margins," explains Radke. Overall the company is anticipating a rise in turnover of 1% to 3% in 2014 in the Brand Business in contrast to a slight downturn in Volume Business. The operating results look set to remain constant at the 2013 level. Sales forecasts will be specified in more detail in the course of the year.
Additional information can be found online in the 2013 annual financial report available to download from http://financial-reports.leifheit-group.com.
*On 31 December 2012 Leifheit ended the license agreement for the use of the naming rights to the brand Dr Oetker Bakeware. The turnover of Dr Oetker Bakeware amounted to EUR 6.8 million in 2012. In 2013, as part of the final completion, sales totalling EUR 1.4 million were made. For better comparability, in the comments turnover for this and last year has been adjusted for the business with Dr Oetker Bakeware. EBIT for 2012 was adjusted in the comments for the positive one-off effects arising out of the termination of business with Dr Oetker Bakeware in the amount of EUR 1.2 million.
Leifheit AG, which was 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 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. Further information on Leifheit can be found on our website at www.leifheit-group.com.
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