Leifheit Aktiengesellschaft: Leifheit AG reaches operating profit target for 2019
DGAP-News: Leifheit Aktiengesellschaft
/ Key word(s): Development of Sales/Preliminary Results
Leifheit AG reaches operating profit target for 2019
Nassau, 19 February 2020 - Leifheit AG, one of the leading brand suppliers of household products in Europe, released its preliminary figures for the financial year 2019 today. According to preliminary calculations, the Leifheit Group generated turnover of EUR 234.0 million in 2019, down slightly from the previous year's level of EUR 234.2 million. The Board of Management expects Group EBIT of EUR 9.9 million, at the upper end of the original forecast range of EUR 9 to 10 million.
Henner Rinsche, Chairman of the Board of Management, says: "In 2019 we grew with our Leifheit branded products while overall Group turnover remained only at previous year's level. Nevertheless we reached our forecast targets for the operating result. This was mainly due to cost reduction measures. At the same time, we were able to successfully carry out tests with TV campaigns on a small scale for example in Austria and the Netherlands in 2019, with a view to enhancing our consumer communication this year. The key point is that we were able to launch important strategic initiatives in the 2019 financial year, from which Leifheit will now progressively benefit."
In its domestic market of Germany, Leifheit recorded a decline in turnover to EUR 93.5 million (2018: EUR 97.6 million). By contrast, turnover in Central Europe rose slightly to EUR 101.3 million (2018: EUR 100.7 million). In Eastern Europe and outside Europe, the company was able to increase turnover significantly, to EUR 30.7 million (2018: EUR 28.9 million) and to EUR 8.5 million (2018: EUR 7.0 million), respectively.
Henner Rinsche is optimistic for the current financial year: "Strategically, we will work hard to increase consumer demand, improve the gross margin and optimise cost structures along the entire value chain. In January, we launched our major TV campaign in our domestic market of Germany with the aim of reaching more consumers with our high-quality products. We will also focus on streamlining our assortments and further expanding our distribution. We have not yet fully exploited our potential in that respect."
In the largest segment by far, Household featuring the Leifheit brand, turnover increased from EUR 180.4 million in the previous year to EUR 182.0 million. In the significantly smaller segment Wellbeing featuring the Soehnle brand, turnover remained stable at EUR 19.8 million (2018: EUR 19.9 million) in the reporting year. In the Private Label segment, the company recorded turnover of EUR 32.2 million (2018: EUR 33.9 million) with its French subsidiaries Birambeau and Herby.
Leifheit will release the full annual financial report for 2019 and the forecast for the current financial year on 25 March 2020.
Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The Leifheit Group divides its operating business into the Household, Wellbeing and Private Label segments. Leifheit and Soehnle products - two of Germany's best-known brands - are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are also active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core areas of expertise in the product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people and operates 15 locations and branches of its own around the world. Leifheit AG shares have been listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange since 1984. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
+49 2604 977218
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||978559|
|End of News||DGAP News Service|