DGAP-News: Leifheit AG: Brand business is growing thanks to demand from abroad (english)
08
November
2012
DGAP-News
Leifheit AG: Brand business is growing thanks to demand from abroad
DGAP-News: Leifheit AG / Key word(s): Interim Report/Quarter Results
Leifheit AG: Brand business is growing thanks to demand from abroad
08.11.2012 / 08:37
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Leifheit AG: Brand business is growing thanks to demand from abroad
- Group turnover is EUR 164,0 million after nine months
- EBIT improved by 9.4% compared to the previous year
- Significant operating result growth planned for 2012
The Quarterly Financial Report of Leifheit AG dated 30 September 2012 shows
divergent business development in the two segments Brand Business and
Volume Business. Whereas it was possible to achieve the targeted growth in
the Brand business, turnover in the lower-margin Volume business remained
below the previous year's value. The Group turnover of Leifheit AG after
nine months was EUR 164,0 million overall and was therefore 0.5% below the
previous year's value of EUR 164.8 million. On the other hand, Leifheit
achieved an increase of 9.4% to EUR 7.7 million in the operating result
(EBIT). Net profit for the period declined from EUR 6,0 m to EUR 5.2
million due to tax.
'The turnover trend for the first nine months still manifests the
repercussions of the weak first six months that were affected by the
continuing difficult sales situation in Southern European countries and the
weak Project Business in the USA. The stable third quarter was not able to
compensate for this,' said Georg Thaller, Chairman of the Board of Leifheit
AG. The third quarter delivered a turnover for Leifheit at the previous
year's level of EUR 53.5 million.
Overseas markets are the growth drivers in the Brand Business
The overseas markets were the crucial growth drivers in the Brand Business
despite large regional differences. The trend in Eastern Europe and Asia
was very pleasing. In Central Europe, good growth rates were achieved in
France, the Netherlands and Switzerland. On the other hand, the consumers
reluctance in Southern Europe had a detrimental effect on business.
The domestic market in Germany also declined slightly compared to the
previous year. Overall, Leifheit achieved a solid plus of 2.1% in the Brand
Business from January to September 2012 with a turnover of EUR 132,0
million.
The Volume Business, where Leifheit achieved sales primarily in France and
the USA, was weaker in both these countries and in Germany than the
previous year. The report for the first nine months of the current
financial year, therefore, shows a decline in turnover in the Volume
Business of 10.1% to EUR 32,0 million. Its share in the total turnover
dropped accordingly to 19.5%.
Leifheit expects significant EBIT growth for 2012
'Due to the continuing precarious situation in Southern Europe, we have
adjusted our regional focus as part of our corporate strategy and we are
concentrating more on Eastern Europe and selected markets in Asia. We also
see significant growth potential in e-commerce', explained Thaller.
Leifheit expects a slight increase in turnover at Group level for the whole
of 2012 compared to the previous year. The Brand Business with solid growth
and stable margins forms the basis for this development. The sales forecast
assumes that the business parameters and the trends in the principal
markets do not deteriorate substantially in the fourth quarter.
The company still expects an overproportional increase in the operating
result in the 2012 financial year of at least 10% in relation to the
adjusted EBIT.
About Leifheit
Formed in 1959, Leifheit AG is one of the leading European suppliers of
branded household items. The Company is a byword for high quality
innovative products with high consumer benefit and pioneering design in the
core areas of Cleaning, Laundry care, Kitchen and Wellbeing. Leifheit, Dr
Oetker Bakeware and Soehnle are among the best-known German brands. Besides
its Brand Business segment, Leifheit AG is active in the service-oriented
Volume Business segment through its French subsidiaries Birambeau and
Herby. With its international branches, the Leifheit Group has around 1,000
employees.
Additional information can be found in the Quarterly Financial Report dated
30 September 2012 and by visiting
http://www.leifheit.de/de/investor-relations/publications/financialreports
.html
Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218
End of Corporate News
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Language: English
Company: Leifheit AG
Leifheitstraße
56377 Nassau
Germany
Phone: 02604 977-0
Fax: 02604 977-340
E-mail: ir@leifheit.com
Internet: www.leifheit.com
ISIN: DE0006464506
WKN: 646450
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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