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Leifheit Aktiengesellschaft: Leifheit achieves a significant increase in earnings and is geared towards significant growth through its strategy 'Leifheit 2020'

26
March
2015

Corporate News


Leifheit Aktiengesellschaft / Key word(s): Final Results/Dividend

2015-03-26 / 09:59


Leifheit achieves a significant increase in earnings and is geared towards significant growth through its strategy "Leifheit 2020"

  • EBIT of EUR 21.5 million and net result for the period of EUR 14.1 million each increased significantly in 2014
  • Leifheit will propose an increased dividend of EUR 1.80 per share to its shareholders
  • Kick-off for "Leifheit 2020": Board of Management envisages moderate growth in the first year of the new Group strategy

Nassau, 26 March 2015 - The Leifheit Group closed 2014 with a stable turnover, significantly increased EBIT and a considerable improvement in the net result for the period. Group turnover of EUR 220.7 million was 0.5% above the comparable adjusted previous year's figures. Leifheit managed to increase EBIT by 44.3% to EUR 21.5 million compared to the previous year. As a result, the EBIT margin increased substantially and was at 9.8% for the 2014 financial year. EBIT improved due to positive foreign currency results of EUR 5.1 million. The Group recorded a net result for the period of EUR 14.1 million which represents an increase in net profit by 37.7% in the 2014 financial year.

"The strategic development of the Group progressed well in 2014 and our cash position is comfortable. We therefore can start from a strong positon to implement our Group strategy 'Leifheit 2020' and are able to participate our shareholders in the positive profit development. Consequently, we will propose an increase in the dividend to EUR 1.80 per share to the Annual General Meeting", says Thomas Radke, CEO of Leifheit AG.

The consolidated Balance sheet as at 31 December 2014 recognised liquid funds of EUR 62.8 million. This represents an increase of EUR 10.8 million due to cash flows from operating activities. The equity ratio of the Leifheit Group was 42.5% at the balance sheet date and thus 4.0 percentage points below the previous year's level, an effect which results from the increase in total assets. The Group does not have any liabilities to banks as yet.

Focus on Brand Business is once more reflected in the trend in turnover

As in previous years, the strategic focus of the Leifheit Group in 2014 was on growing Group segment Brand Business and on operating with a greater focus on profitability in the smaller segment Volume Business. As a result, turnover developed as follows in 2014: A positive increase of 4.4% to EUR 180.4 million was generated in Brand Business in which the brands Leifheit and Soehnle are offered and thus exceeded forecasts. This growth was primarily driven by the favourable development of the Leifheit product categories cleaning and laundry care. Whereas the category cleaning achieved an increase in turnover of 12.7%, the products in the category laundry care generated an increase in turnover of 5.5%. On the whole, Leifheit increased the share contributed by the segment Brand Business to Group turnover to 81.8%.

Brand Business accounted for EBIT of EUR 16.2 million, representing a year-on-year increase by 51.5%. As such, the segment contributed accounted for roughly 76% of Group earnings.

Leifheit recorded a decline in turnover of 13.8% to EUR 40.3 million in Volume Business which comprises the subsidiaries Herby, Birambeau and Project Business. The share contributed by Volume Business to Group turnover decreased to 18.2%. EBIT in Volume Business amounted to EUR 5.3 million and, as such, was 25.7% above the previous year's level.

Implementation launch of the Group strategy "Leifheit 2020"

The Board of Management presented the revised Group strategy, "Leifheit 2020" at the very beginning of the year. This strategy contains the company's guidelines for future development which it seeks to apply to all levels of the value-added chain. The company's economic goal is sustained profitable growth to be achieved not only organically but also explicitly through acquisitions.

"We aim to position Leifheit as the expert in easy and convenient household cleaning and care. We also thereby strengthen the brand Soehnle. Therefore we continue to focus more broadly on Brand Business. In addition, our increased innovativeness, a revised category approach, offerings for new target groups and consistent thinking in product systems provide an important boost to future growth", explains Radke. In addition to internal projects, Leifheit is also considering potential additional acquisitions in some depth. Here the focus will be on European companies with turnover of up to EUR 100 million.

Outlook for 2015: Moderate Group growth

In the first year of the Group strategy "Leifheit 2020", Leifheit management anticipates that the Group will experience moderate growth. The company is aiming for an increase in Group turnover of two to three percent in 2015. For Brand Business the target is an increase in turnover of three to four percent, while turnover in Volume Business is expected to remain constant. With regard to operative earnings (EBIT), Leifheit plans to equal the previous year's level adjusted for the foreign currency result.

Further information can be found in the Leifheit annual financial report 2014 which is available at financial-reports.leifheit-group.com.

About Leifheit

Leifheit AG was founded in 1959 and 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. More information on Leifheit can be found online at www.leifheit-group.com, www.leifheit.com and www.soehnle.com.


Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218




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