Leifheit Aktiengesellschaft: On growth course in financial year 2020
/ Key word(s): Annual Report/Annual Results
Leifheit AG: On growth course in financial year 2020
Nassau, 24 March 2021 - Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, released its final figures for financial year 2020 today. The Leifheit Group was able to generate turnover of EUR 271.6 million in the past financial year, equating to a year on year rise of 16.0% (2019: EUR 234.0 million). Double-digit growth was recorded across all regions. Development in Germany was particularly pleasing, as the Leifheit Group succeeded in reversing the trend of declining turnover in its domestic market in 2020. The Leifheit Group generated full-year turnover of EUR 107.2 million in Germany in 2020, an increase of 14.6% compared to the previous year (2019: EUR 93.5 million). In addition, the Leifheit Group generated earnings before interest and taxes (EBIT) of EUR 18.8 million, which is almost double the previous year's Group EBIT (2019: EUR 9.9 million).
Looking back on financial year 2020, Henner Rinsche, Chairman of the Board of Management of Leifheit AG, is positive: "We achieved a clear turnaround in terms of turnover, margin and EBIT trends in financial year 2020. In doing so we also managed to maintain a reliable supply of our customers thanks to our European production and logistics footprint despite the challenges presented by the coronavirus pandemic. One challenge remains: the growth- and pandemic-related rise in working capital has had an impact on cash flow. We will continue to focus on improving cash flow in 2021. In 2020 we clearly demonstrated that we have made real progress with our Scaling up Success growth strategy. Besides making further investments in consumer advertising, we have also implemented additional streamlining measures, thereby initiating important decisions to increase consumer demand and improve the margin and cost situation in 2021."
In the Household segment with the Leifheit brand, the Leifheit Group significantly increased its turnover year on year by 17.0% to EUR 213.1 million (2019: EUR 182.0 million). As a result, the Household segment contributed 78.5% of Group turnover (2019: 77.8%). The cleaning and laundry care categories were particular factors in this robust segment growth, which was fuelled by the successful TV advertising campaign in 2020 and also reflects the increasing need for good hygiene among consumers. The Leifheit Group also benefited from the change in consumer behaviour caused by the coronavirus pandemic. Spending on kitchen products rose on account of consumers preparing and cooking more food at home.
In the significantly smaller Wellbeing segment with the Soehnle brand, turnover increased by 33.7% from EUR 19.8 million in 2019 to EUR 26.5 million in 2020. This equates to a 9.8% share in Group turnover. Strong growth in sales of Soehnle kitchen scales and increased demand during the pandemic for Soehnle air purifiers, which remove allergens from the air and combat viruses and bacteria, were crucial factors in this positive turnover trend.
In the Private Label segment, turnover involving the French subsidiaries Birambeau and Herby was stable in 2020 at EUR 32.0 million (2019: EUR 32.2 million). Although France, the key core market in this segment, was affected by the COVID-19 restrictions, this negative effect was able to be absorbed by new customer acquisition.
The Leifheit Group capital structure remained solid in 2020. As at 31 December 2020, the company generated liquidity of EUR 38.8 million (2019: EUR 50.3 million). Equity rose marginally and stood at EUR 100.4 million (2019: EUR 96.2 million). With the balance sheet total rising at the same time, the equity ratio was slightly down year on year at 43.7% (2019: 44.8%). As in previous years, Leifheit had no liabilities to banks at the end of financial year 2020.
The Board of Management and the Supervisory Board will propose to the Annual General Meeting on 2 June 2021 a dividend of EUR 1.05 per no-par-value bearer share for financial year 2020. After paying out a dividend of EUR 0.55 per dividend-entitled share in 2020 due to uncertainty surrounding the coronavirus crisis, Leifheit is thus continuing the reliable dividend policy of previous years.
The Leifheit Group will continue to implement its growth strategy in the current financial year. "Our TV campaigns for our best-selling products with their 'very good' test ratings began successfully at the beginning of 2021, giving us a good start into the new year in terms of turnover. We are also expanding our activities to include the Soehnle brand and other European markets," continues Rinsche. "At the same time, the effects of the COVID-19 pandemic remain noticeable. The significant rise in steel and plastic prices, the strained sea freight situation and the pandemic-related cost increases at our plant in Blatná, Czech Republic, are currently posing us challenges. We will continue to monitor developments closely and take effective countermeasures. For example, we ramped up our inventories at the end of 2020 to ensure our ability to deliver and consider ourselves well-equipped for the extensive advertising campaigns this year. We are confident that we can continue the previous year's positive growth trend in the current financial year."
Against the backdrop of global economic development currently forecasted for 2021 and the gradual easing of the measures to combat the COVID-19 pandemic over the next few weeks, the Board of Management of Leifheit AG anticipates year on year Group turnover growth of at least 5% in financial year 2021. The Leifheit Group will continue to focus on expanding its core business with the Leifheit and Soehnle brands with increased consumer advertising. The Board of Management also anticipates EBIT of between EUR 20 million and EUR 24 million in financial year 2021.
The Leifheit Group's full annual financial report 2020 is available for download at financial-reports.leifheit-group.com.
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 household brands - are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
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24.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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