Leifheit Aktiengesellschaft: Leifheit proposes increased dividend of EUR 2.00 plus special dividend of EUR 0.75 per share
DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Final Results/Dividend
Leifheit proposes increased dividend of EUR 2.00 plus special dividend of EUR 0.75 per share
- Growth in turnover of 5%
- EBIT of EUR 21.7 million exceeds earnings forecast
- "Leifheit 2020" strategy already bearing fruit
- Adapted dividend policy
- Outlook for 2016: Solid growth in turnover and result expected
Nassau, 31 March 2016 - The Leifheit Group ended the 2015 financial year with higher turnover and a slightly improved result (EBIT) as compared to the previous year. Group turnover amounted to EUR 231.8 million, which represents a 5.0% increase over the previous year.
Strategically significant Brand Business also experienced considerable growth in 2015
The turnover of our Brand Business, which comprises the Leifheit and Soehnle brands, increased by 4.3% to EUR 188.1 million as of the end of the financial year. This continual growth is principally due to increasing demand for Leifheit branded products, primarily in the cleaning category, and being bolstered by renewed growth in double-digit amounts in the context of the e-commerce sales channel.
The turnover of the significantly smaller Volume Business rose by 8.6% to EUR 43.7 million, with this segment having benefited from the strong growth recorded in the kitchen goods and laundry care product categories in France, largely as a result of the first-time furnishing of a newly acquired commercial customer with Birambeau kitchen products.
With regard to its earnings before interest and taxes (EBIT) in the amount of EUR 21.7 million, the Leifheit Group recorded a slight increase over the figure for the previous year (EUR 21.5 million), in spite of significantly lower foreign currency gains. The EBIT margin realised was 9.3%, as compared to 9.8% in 2014. The EBIT adjusted for the foreign currency result rose by EUR 2.8 million to EUR 19.2 million and the adjusted margin by approximately one percentage point to 8.3%. The Leifheit Group's net result for the period, after deduction of taxes, amounted to EUR 14.3 million, having increased slightly from EUR 14.1 million in the previous year.
As at 31 December 2015, Leifheit had Group liquidity in the amount of EUR 68.2 million, with this increase in liquid funds of EUR 5.4 million over the previous year being primarily due to the cash flow from operating activities in the amount of EUR 20.8 million. The equity ratio continued to improve, rising to 44.9% as of the end of the 2015 financial year from 42.5% as at the balance sheet date for 2014.
Shareholder oriented dividend policy adapted
"The consistent implementation of our 'Leifheit 2020' strategy has already enabled us, in the first year of its application, to generate new and positive impetus, which has also had an impact on the market. In light of our positive business performance we will be proposing the payment of an increased dividend in the amount of EUR 2.00 (previous year: EUR 1.80) per share to the Annual General Meeting. In addition, due to our good liquidity we will be proposing a special dividend of EUR 0.75 per share" says Thomas Radke, CEO of Leifheit AG,
In principle the dividend policy provides for distributing around 75% of the net result for the period or the free cash flow of a financial year to shareholders as ordinary dividends. In addition Leifheit will in future consider the distribution of special dividends, if year-end Group liquidity exceeds the expected liquidity needs for potential M&A activities and for seasonal fluctuations of working capital in the amount of approx. EUR 55 million, as well as for dividends pay-out for the previous financial year. This was decided by the Management Board and the Supervisory Board in its recent meeting. "Our new dividend policy secures our financial flexibility for potential M&A transactions and is at the same time the expression of our shareholder oriented corporate management", says Dr Claus-O. Zacharias, CFO of Leifheit AG.
Outlook for 2016: Solid growth in turnover and result
The focus of the Management Board of Leifheit AG in the current business year remains on the implementation of the Group's strategy "Leifheit 2020", in particular by means of the expansion of its activities at the international markets and the further development of its product portfolio. The Leifheit Group aims to increase its turnover by between 3% and 4% in 2016, anticipating growth of between 4% and 5% in its Brand Business and turnover for its Volume Business in line with that for 2015. The company expects Group result (EBIT) of between EUR 22 million and EUR 23 million.
Further information can be found in the Leifheit annual financial report for 2015, which is available at http://financial-reports.leifheit-group.com.
Leifheit AG, founded in 1959, 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 among the best-known brands in Germany. In addition to the Brand Business, Leifheit AG operates in the service-oriented Volume Business via its French subsidiaries Birambeau and Herby. The Leifheit Group and its international branches combined have around 1,000 employees. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
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