DGAP-News: Leifheit AG: Earnings increase by 52% in first half of 2012 (english)

Leifheit AG: Earnings increase by 52% in first half of 2012DGAP-News: Leifheit AG / Key word(s): Half Year ResultsLeifheit AG: Earnings increase by 52% in first half of 201209.08.2012 / 09:35———————————————————————Leifheit AG: Earnings increase by 52% in first half of 2012 – Group EBIT increases from EUR 3.4 million to EUR 5.1 million – Group turnover slightly below previous year’s level – 2012 earnings forecast confirmedNassau, 9 August 2012 – The Leifheit Group posted turnover of EUR 110.5million in the first half of 2012, slightly below the prior-year level ofEUR 111.4 million. In contrast to this, EBIT of the Leifheit Groupincreased considerably by 51.9% from EUR 3.4 million to EUR 5.1 million.Unrealised currency effects from the measurement of forward foreignexchange contracts totalling EUR 0.5 million had a negative impact on EBITin the same period of the previous year. Adjusted for this effect, thecomparable figure for the previous year was EUR 3.9 million, leadingoverall to a considerable increase of 33.4% in EBIT. Successfuloptimisation measures and focusing on high-margin business as part of the’Leifheit GO!’ business strategy are responsible for this significantimprovement.After taxes, the company generated EUR 3.5 million in net result for theperiod, more than double the prior-year amount of EUR 1.7 million. ‘Despitethe moderate development in turnover in the first half of 2012, our effortsto generate higher efficiency and strengthen the margins are havingbeneficial effects. Increased profitability is the result of our businessstrategy’, stated Georg Thaller, CEO of Leifheit AG.Focus markets with vastly different developmentAs one of the leading European suppliers of branded household items,Leifheit’s turnover is heavily dependent on consumer confidence indifferent sales markets. For this reason, the European sovereign debtcrisis greatly affected Leifheit’s turnover, especially in the southernEuropean countries. In contrast, some of the company’s focus markets thatwere not so hard-hit by the crisis performed well, for example, theNetherlands, Austria, Russia and France. Leifheit increased turnover by4.0% overall in Europe excluding Germany. In Germany, turnover declined by2.8%. In particular, poor weather in the spring months had a negativeinfluence on business with rotary driers.Brand Business grows, Volume Business deterioratingBusiness from the Leifheit, Dr. Oetker Bakeware and Soehnle brands was thepillar of Group turnover development in the past half-year as well. BrandBusiness deteriorated in Southern Europe, but performance in other marketsoffset this. For example, turnover from Brand Business in the first half of2012 was EUR 90,0 million, or up by 1.6% from the previous year. Its shareof Leifheit’s total turnover further increased in line with strategiccorporate decisions and reached 81.4%. The Group recorded a decline inturnover of 10.4% to EUR 20.5 million in the Volume Business. Thisdevelopment is mainly due to a decline in Project Business with a UScustomer.Forecast turnover adjusted, earnings forecast confirmedDue to the decreasing momentum of the global economy and the ongoingnegative influence of the debt crisis on consumer confidence in Europe,Leifheit believes its own economic prospects have worsened. ‘Even though weconsider ourselves to be well positioned: We cannot escape increasingconsumer restraint, which is due in large part to the ongoing sovereigndebt crisis in Europe’, explained Thaller. The forecast turnover wastherefore adjusted. The turnover objective for 2012 as a whole is now for2% growth. The company also continues to assume that it can generate anincrease of more than 10% in adjusted EBIT for financial year 2012 and thusconfirmed the forecast of a strong earnings upturn. The prerequisite forthis is a stronger exchange rate for the euro vis-à-vis the US dollar.About LeifheitFormed in 1959, Leifheit AG is one of the leading European suppliers ofbranded household items. The Company is a byword for high qualityinnovative products with high consumer benefit and pioneering design in thecore areas of cleaning, laundry care, kitchen and wellbeing. Leifheit, DrOetker Bakeware and Soehnle are among the best-known German brands. Besidesits Brand Business segment, Leifheit AG is active in the service-orientedVolume Business segment through its French subsidiaries Birambeau andHerby. With its international branches, the Leifheit Group has around 1,100employees.Additional information can be found in the half-yearly financial report asat 30 June 2012 and athttp://www.leifheit.de/en/investor-relations/publications/financial-reports.html.Contact:Leifheit AGD-56377 +49 2604 977218End of Corporate News———————————————————————09.08.2012 Dissemination of a Corporate News, transmitted by DGAP – acompany 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: 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 ——————————————————————— 181072 09.08.2012Weitere Informationen: www.dpa-AFX.de