Leifheit Aktiengesellschaft: Leifheit AG publishes report for business year 2018


Corporate News

DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Annual Results/Development of Sales

28.03.2019 / 08:26
The issuer is solely responsible for the content of this announcement.

Corporate News

Leifheit AG publishes report for business year 2018

- Slightly lower Group turnover of mEUR 234.2

- Group EBIT of mEUR 13.1

- Expansion of e-commerce activities and increased investments in Eastern European markets

- Constant dividend of EUR 1.05 per share proposed


Nassau, Germany, 28 March 2019 - Leifheit AG, one of the leading brand suppliers of household products in Europe, published its final results for financial year 2018 today. The Leifheit Group achieved a turnover of EUR 234.2 million, representing a slight year-on-year decrease (2017: EUR 236.8 million). While turnover in Central Europe decreased, the Leifheit Group grew moderately in the domestic market of Germany and achieved a significant increase in turnover in the target region of Eastern Europe. The Group EBIT of EUR 13.1 million (2017: EUR 18.8 million) was in line with predictions. EBIT was influenced by the decrease in gross profit, which was negatively impacted by foreign currency effects, price increases for materials, mix effects and lower contribution margins due to turnover. Non-recurring expenses for changes to the Board of Management also affected earnings. After deduction of taxes, the Leifheit Group achieved a period result of EUR 8.4 million (2017: EUR 12.9 million).

Ivo Huhmann, member of the Board of Management and Chief Financial Officer of Leifheit AG, says: "We focused on advancing important strategic core issues in financial year 2018 in order to put the Leifheit Group on the road to profitable growth again in the interest of our shareholders. In 2019 we are going to further increase investment in our brands and in digitalisation, but also into making the structures of the company more efficient. We are also working on further improving the benefits customers obtain from our core products and will gradually be updating them. At the same time we will increase our investment in the expansion of our brands in Eastern Europe."

In the reporting period, the business segments were newly organised. In the new Household segment, which generates the highest turnover and comprises the Leifheit brand as well as the laundry care, cleaning and kitchen product categories, the company achieved turnover of EUR 180.4 million in 2018 (2017: EUR 182.9 million). Within the segment, Leifheit was able to increase turnover in the cleaning product category by introducing product innovations. Significant contributions were made by, for example, the newly introduced Leifheit Regulus PowerVac cordless vacuum cleaner and the CleanTenso steam cleaner. However, this positive development could not fully compensate for the lower turnover volume in the laundry care and kitchen product categories.

In the Wellbeing segment, with the Soehnle brand and a range of scales, health products and room air treatment products, the company achieved turnover turnaround. Turnover in the segment grew to EUR 19.9 million (2017: EUR 19.6 million). Growth was particularly driven by the innovative Soehnle Living and Soehnle Medical product categories.

The company achieved turnover of EUR 33.9 million (2017: EUR 34.3 million) in the Private Label segment, which comprises the retail brand business of the French subsidiaries Birambeau and Herby. The slight decrease can be attributed in particular to the ongoing weakness of individual trade partners as well as the protests in France.

As at 31 December 2018, Leifheit achieved Group liquidity of EUR 50.9 million. The equity capital as at 31 December 2018 stood at EUR 101.8 million, an increase of EUR 3.3 million compared to the previous year's balance sheet date. Accordingly, the capital ratio at the end of financial year 2018 stood at 45.9% (2017: 43.8%).

The Board of Management of Leifheit AG will propose a dividend of EUR 1.05 per eligible no-par-value bearer share for financial year 2018 to the Annual General Meeting on 29 May 2019. This represents a continuation of the Leifheit Group's shareholder-oriented dividend policy.

The Board of Management predicts a 3% to 4% increase in turnover for financial year 2019, with all three segments expected to contribute. In addition, the Board of Management predicts earnings before interest and taxes (EBIT) of around EUR 9 million to EUR 10 million. "We expect our strategic measures to have positive effects on growth and results in the medium term. However, the necessary investments will have an initial negative impact on the result in 2019. An important element will be the interlocking and optimisation of our sales channels on a step-by-step basis so as to more fully exploit the potential in e-commerce. In the coming months, we will launch our own online shop in important markets, bringing us even closer to our customers. We want to considerably exceed the solid growth of 6.8% achieved in e-commerce in 2018 in the next few years" adds Ivo Huhmann.

The complete annual financial report 2018 of the Leifheit Group can be downloaded at finanzberichte.leifheit-group.com.

About Leifheit

Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The Leifheit Group divides its operating business in to 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.

Leifheit AG
D-56377 Nassau
+49 2604 977218

28.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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