DGAP-News: Leifheit AG: Brand business is growing thanks to demand from abroad (english)



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 --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 08.11.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 192155 08.11.2012 Weitere Informationen: www.dpa-AFX.de