Leifheit Aktiengesellschaft: Focus on 'Brands and Margins' led to improved half-year
Leifheit Aktiengesellschaft / Key word(s): Half Year Results/Interim Report
Leifheit AG: Focus on "Brands and Margins" led to improved half-year results and stable turnover
- Group turnover remains stable at EUR 108.3 million
- Brand Business grows at approximately 2%
- Gross margin improves, rising to 47.4%
- EBIT increases to EUR 8.1 million
- Overall forecast for the year affirmed
Nassau, 13 August 2014 - Pursuant to the "Brands and Margins" objective for the 2014 financial year, the Leifheit Group ended the first six months with an increase in turnover in the Group's Brand Business sector and a distinctly improved result for the Group as a whole. Overall, the six-month report submitted today displays business development in line with expectations:
Group turnover remained at EUR 108.8 million in line with the previous year's level of EUR 108.3 million. Gross margin grew from 43.6% to 47.4%. The operating profit (EBIT), which rose considerably from EUR 5.0 million to EUR 8.1 million, was accompanied by a clearly increased EBIT-margin of 7.5 % compared to the previous year's value of 4.5%. Overall, the Leifheit Group reported a greatly improved net income of EUR 5.2 million in the first six months of 2014 in comparison to that of the EUR 3.3 million achieved in 2013.
Thomas Radke, Chairman of the Leifheit AG Executive Board, spoke positively of the six-month result: "The development of the business is clearly heading in the right direction. Our Brand Business is growing and at the same time we are improving the profitability of the entire Group."
Brand Business grows
The Brand Business, under which the Group manages Leifheit and Soehnle branded products, reported a turnover of EUR 90.4 million in the first six months of 2014, thereby achieving a growth of 1.8% in comparison to the previous year. Despite the withdrawal of a prominent customer in the DIY market having had a noticeable effect on the business since the beginning of the year, Leifheit was able to successfully compensate for this via other trade channels. The cleaning and laundry care product categories proved themselves to be particularly strong driving forces in the process. The Brand Business' share of the Group turnover rose accordingly by 1.9% to 83.5%. The segment EBIT increased from EUR 4.1 million in the previous year to EUR 6.9 million.
Increased EBIT in the Volume Business with a slight decline in turnover
As expected, the strategic concentration on the Brand Business led to a decline in turnover in the Volume Business, the considerably smaller sector of the Group. Turnover fell by 11.1% to EUR 17.9 million in comparison to the first six months of 2013; the Group's share of the turnover fell by 1.9% to 16.5. However, despite the lower turnover, improved gross margin and cost savings resulted in an increase in the segment EBIT from EUR 0.9 million in the previous year to the current EUR 1.2 million.
The forecast for the future business development of Leifheit AG remains unchanged from that given in the 2013 Annual Financial Report. The company continues to pursue the conservative ambition for steady growth in the 2014 financial year: a Group turnover similar to the adjusted figures for 2013 is expected. Appropriate to its current "Brands and Margins" objective the Executive Board anticipates an increase in turnover of 1 to 3 % in the Brand Business. In contrast, the Volume Business segment will be further managed in terms of profitability, highlighted by a slight decrease in turnover.
Leifheit anticipates an EBIT for 2014 at the good level reached in the previous year which settled at EUR 14.9 million.
Additional information can be found in the Financial Report for the first six months of 2014, available at financial-reports.leifheit-group.com.
Founded in 1959, Leifheit AG 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. Other than in the Brand Business, Leifheit AG operates in the service-oriented Volume Business via its French subsidiaries Birambeau and Herby. Taking into account its international branches, the Leifheit Group has around 1,000 employees in total.
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