Leifheit AG: results significantly up on previous year



Leifheit AG / Half Year Results

12.08.2010 08:57

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.


- Continued focus due to sale of Bathroom Furnishings division
- EBIT from continuing operations up at EUR 7.7 million 
- Consolidated turnover rises to EUR 105 million (excluding Bathroom
- Outlook: 2010 annual results tend towards previous year's level despite
sale of Bathroom Furnishings division

Note on the comparability of key ratios

Due to the sale of the Bathroom Furnishings division in the second quarter
of 2010, this is classified as 'discontinued operations'. In accordance
with IFRS 5, the results for this division are now shown separately in the
income statement. As a result, the income statement shows details only for
the continuing operations, comprising the former Household Products
division and the non-allocatable items (group functions). The figures for
the previous year were adjusted accordingly. The statement of financial
position for the period ending 30 June 2010 no longer includes the
deconsolidated Bathroom Furnishings division. The Bathroom Furnishings
division is, however, still included in the statement of financial position
for the period ending 31 December 2009.

Nassau, 12 August 2010 - Leifheit AG presents its report today on the first
half of 2010. The company has again increased turnover and all the
important earnings components.

After the sale of the Bathroom Furnishings division in the first half of
2010, the company is now organised in the segments 'Brand business'
(Leifheit, Dr. Oetker Bakeware and Soehnle) and 'Volume business'
(Birambeau and Herby).

Results significantly outperform expectations 

Consolidated turnover (excluding Bathroom Furnishings) grew by around 1 %
to EUR 105 million, slightly above the comparable figure for the previous
year (1st half of 2009 excl. Bathroom Furnishings: EUR 104 million, inc.
Bathroom Furnishings: EUR 137 million). The foreign share was unchanged at
56 %.

EBIT from continuing operations was EUR 7.7 million. It includes unrealised
foreign exchange gains from the revaluation of foreign exchange futures
transactions amounting to EUR 2.1 million. Therefore adjusted EBIT was EUR
5.6 million, well above not only the comparable figure for the previous
year (1st half 2009 excl. Bathroom Furnishings: EUR 0.9 million) but even
the previous year's figure including Bathroom Furnishings (EUR 2.8
million). This positive trend is due particularly to the growth in Brand
business, with a qualitative improvement in gross margin.

EBT from continuing operations rose in the period ending 30 June 2010 to
EUR 6.6 million (1st half 2009 excl. Bathroom Furnishings: EUR -0.1
million, 1st half 2009 inc. Bathroom Furnishings: EUR 1.6 million).

The result for the period, primarily from the proceeds of the disposal and
the result of the former Bathroom Furnishings division, increased
significantly to EUR 15.6 million (1st half 2009: EUR 0.4 million).

Cash flow from operating activities was EUR 0.2 million (1st half 2009: EUR
28.5 million), and now includes changes in receivables and payables for the
former Bathroom Furnishings division.

Brand business the mainstay of the group

Our strong brands Leifheit, Dr. Oetker Bakeware and Soehnle were again the
mainstay of group success. With turnover of EUR 90 million, the brands
matched the previous year (1st half 2009: EUR 90 million), which still
included turnover of c. EUR 6 million from the former ladders business.
Almost half (49 %) of turnover for the first half came from outside
Germany. The growth rates in Austria and the USA offset the continuing
declines in Eastern Europe. Cleaning products were particularly successful,
benefiting from the success of the TV campaign for the twist system.

The contribution of Brand business to consolidated EBIT for the period
ending 30 June 2010 rose significantly to EUR 7.3 million (1st half 2009:
EUR 1.1 million).

Solid Volume business 

Volume business, with articles previously distributed entirely outside
Germany by Birambeau (kitchen) and Herby (laundry) grew almost 4 % year
over year to EUR15 million (1st half 2009: EUR14 million). The segment's
share in consolidated turnover was stable at 14 %. In the first half of
2010, Birambeau managed to offset a missing special offer campaign in
France from the previous year through turnover from its kitchen appliances.
However, the loss of private label business in Spain partly diminished this
positive effect. In the laundry business area, Herby further expanded its
special offer and stockist business in France, generating growth of 10 %.

The contribution to consolidated EBIT for the period ending 30 June 2010
rose significantly to EUR 1.8 million (1st half 2009: EUR 1.4 million).

Moderate growth in second half

By end-2010 the company expects turnover to slightly exceed 2009 levels for
the comparable segments.

Growth in earnings in the second half will be relatively moderate compared
to the first half, as that included foreign exchange effects and
nonrecurring effects from the sale of the Bathroom Furnishings division.
However, the Board of Management is confident that earnings will tend
towards previous year's level even without the Bathroom Furnishings
division. On a comparable basis (continuing operations excluding Bathroom
Furnishings) the company will increase earnings in 2010, confirming the
growth path in the core areas.

Additional information is available in the financial report for the first
half year to 30 June 2010, available at

Leifheit AG
D-56377 Nassau
+49 2604 977218

12.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language:     English
Company:      Leifheit AG
              56377 Nassau
Phone:        02604 977-0
Fax:          02604 977-340
E-mail:       ir@leifheit.com
Internet:     www.leifheit.com
ISIN:         DE0006464506
WKN:          646450
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Hamburg, München, Berlin, Düsseldorf, Hannover, Stuttgart
End of News                                     DGAP News-Service


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