Leifheit Aktiengesellschaft: Leifheit AG off to a successful start to the financial year 2021
/ Key word(s): Quarterly / Interim Statement/Quarter Results
Leifheit AG off to a successful start to the financial year 2021
The increase in the gross margin and the substantial turnover growth of 25.5% in the first quarter of 2021 were the main contributors to the improved result. Group turnover increased to EUR 86.2 million (previous year: EUR 68.7 million). The very strong turnover growth of 38.3% in its German domestic market along with the 24.3% increase in turnover in central Europe made significant contributions. In particular, the Group achieved considerable gains in France and Italy with turnover growth of 53.8% and 45.9%. There was also significant turnover growth of 30.6% in Austria as a result of the expanded distribution network. Turnover in the Eastern Europe sales region decreased slightly in the first three months. However, double-digit growth was achieved in important markets in the region. Turnover in the Czech Republic, for example, grew by 24.4% and by 21.9% in Romania.
Henner Rinsche, Chairman of the Board of Management of Leifheit AG, is satisfied with the business development at the beginning of the year: "Despite the ongoing challenges of the market environment, we made a good start to financial year 2021. In the course of our Scaling up Success growth strategy, we invested increasingly in consumer advertising during the first quarter. For the first time, the Soehnle brand was advertised on television. With great success: turnover for Soehnle scales has increased by approximately 52%, which led to a significant turnover growth of 27.5% in the Wellbeing segment. The campaign focused on the Style Sense Safe 300 personal scales which received a 'very good' test rating from the 'Haus & Garten Test' magazine. In response to the pandemic, consumers have also shown a greater demand for floor cleaning and air purification products as well as kitchen accessories."
In the Household segment, the Leifheit Group generated turnover growth of 22.5% to EUR 69.7 million (previous year: EUR 56.9 million) in the first quarter of 2021. As result, 80.9% of the Group turnover were generated in the Household segment (previous year: 82.9%). All product categories contributed to the strong performance with double-digit growth rates. In the kitchen and cleaning categories, Leifheit benefited from TV advertising for cleaning products and changes in consumer behaviour caused by the pandemic.
In the Wellbeing segment with the Soehnle Brand, the Leifheit Group generated turnover of EUR 7.9 million (previous year: EUR 6.2 million), reflecting significant growth of 27.5% compared to the first quarter of the previous year. In addition to the strong growth with Soehnle scales, the strong demand for Soehnle air purifiers also contributed to the segment's positive turnover development. The range of air purifiers was expanded in the first quarter with the addition of the Soehnle Airfresh Clean 400, which recently finished first in a test conducted by the "Haus & Garten Test" magazine. The air purifier filters out 99.95%1 of particles such as allergens, viruses and pollutants through its high-performance four-stage cleaning system, HEPA filter and UV-C light. This product innovation already made a positive contribution to turnover. All in all, the Leifheit Group was able to almost double turnover in the air product group.
In the Private Label segment, which mainly comprises sales of private-label brands by the French subsidiaries Birambeau and Herby, turnover increased to EUR 8.6 million (previous year: EUR 5.6 million). This represents an increase of 53.6% year-on-year.
Discussing the implementation of the growth strategy during the current financial year, Henner Rinsche explains: "We will continue to bring selected products into the focus of consumers that have been awarded 'very good' test ratings on account of their excellent quality through extensive TV activities. For example, these include Leifheit rotary dryers, which recorded their most successful first quarter in the company's history in terms of turnover and sales. The Linomatic 600 Deluxe Cover rotary dryer also provided additional impetus. As the winner of a 'Meine Gartenwelt' magazine test, it was rated 'very good'. In addition, the Regulus Aqua PowerVac cordless vacuum wiper will also be seen on TV. We have significantly increased our market shares in this strongly growing market in recent months."
The Leifheit Group continues to face challenges in the supply chain, production and logistics due to the pandemic. At the same time, ongoing restrictions and closures of key trade channels remain a factor, so that the impact of the pandemic on the business activities of the Leifheit Group remain difficult to assess. Also in view of the fact that the earnings performance in the first quarter of 2021 has exceeded the original expectations, the Board of Management therefore continues to expect Group turnover growth of at least 5% year-on-year as well as a Group EBIT of between EUR 20 million and EUR 24 million.
Further information can be found in the quarterly statement for the period ending 31 March 2021, available at financial-reports.leifheit-group.com.
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11.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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