27.03.2018
Leifheit Aktiengesellschaft DE0006464506
DGAP-News: Leifheit Aktiengesellschaft: Leifheit aims for turnover growth of 4 to 5%
DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Final
Results/Development of Sales
Leifheit Aktiengesellschaft: Leifheit aims for turnover growth of 4 to 5%
27.03.2018 / 07:32
The issuer is solely responsible for the content of this announcement.
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Leifheit aims for turnover growth of 4 to 5%
- Group turnover stable in financial year 2017
- Brand Business benefits from sustained growth of the Leifheit brand
- Special effects negatively affected EBIT
- Unchanged ordinary dividend of EUR 1.05 per share proposed
Nassau, Germany, 27 March 2018 - In financial year 2017, the Leifheit Group
generated Group turnover of mEUR 236.8, which was approximately on par with
its level in the prior year (2016 mEUR 237.1). Above all, the negative
foreign currency result, higher material prices as well as planned expenses
for the reorganisation of sales activities affected earnings before interest
and taxes (EBIT). EBIT reached mEUR 18.8, which was below its level in the
prior year (2016: mEUR 21.1). EBIT thereby remained in the forecast
corridor. In the current financial year, Leifheit aims to increase Group
turnover again, from about 4 to 5%.
"Last year our business performed less well than expected because we were
unable to counteract all the unexpected challenges with short-term measures.
However, we are generally on the right path with regard to the
implementation of our 'Leifheit 2020' growth strategy. That is reflected, in
particular, by the renewed positive development of the e-commerce
distribution channel and the significant impetus for growth achieved by the
introduction of new consumer-oriented products in the Brand Business," says
Thomas Radke, Chairman of the Board of Management of Leifheit AG.
Brand Business benefits from the success of the Leifheit brand
Turnover in the Brand Business, which includes the activities of the
Leifheit and Soehnle brands, increased slightly in the financial year,
reaching mEUR 196.7 by the end of the year. That compared to a total of mEUR
195.8 in the prior year. The development of the segment was driven by the
sustained growth of the Leifheit brand's cleaning and laundry care products.
For example, the Leifheit LinoProtect rotary dryer with integrated
waterproof cover introduced in 2017 and the Leifheit Care & Protect products
for wood floor care each made a significant contribution, along with the
Leifheit Click System, which has been established for a number of years.
Turnover in the e-commerce distribution channel also increased strongly
again, with growth of 10%. The Brand Business' total share of Group turnover
rose further to 83.1% (2016: 82,6%).
The significantly smaller Volume Business, which is characterised by a high
proportion of special offers and project business, and a strong focus on
individual markets and customers, achieved turnover of mEUR 40.1 in
financial year 2017. That represented a decrease of 2.8% after the mEUR 41.3
achieved in the prior year. The decrease was primarily the result of lower
business volume in France. Here, volumes for kitchen products from Birambeau
and laundry care products from Herby were lacking in various hyper markets.
Meanwhile, turnover in the Volume Business in Germany increased
significantly.
EBIT decreased year on year by mEUR 3.3 to mEUR 18.8. The EBIT margin in the
reporting period was 8.0 percent, and was therefore lower than the margin of
9.3 percent achieved in the prior year. Adjusted for the foreign currency
result, EBIT fell by mEUR 1.5 to mEUR 20.3. The adjusted EBIT margin of 8.6%
was lower than its level of 9.2% in the prior year. After deduction of
taxes, the Leifheit Group achieved a net result for the period of mEUR 12.9
(2016: mEUR 14.5).
Leifheit reported Group liquidity of mEUR 57.2 as at 31 December 2017. The
mEUR 12.3 decrease in liquidity is primarily due to a mEUR 14.6 reduction in
cash flow from operating activities and the increased dividend, including
the special dividend for financial year 2016. Equity reached mEUR 98.5 as at
31 December 2017 and therefore fell by mEUR 6.1 year on year. As a result,
the equity ratio stood at 43.8% as at the end of financial year 2017, having
amounted to 43.7% as at the balance-sheet date in 2016.
"We have further sharpened our 'Leifheit 2020' strategy"
Based on business development, the Board of Management of Leifheit AG will
propose an unchanged ordinary dividend of EUR 1.05 per share for the past
year to the upcoming Annual General Meeting on 30 May. That dividend takes
into the account the twofold increase in the quantity of shares compared to
the prior year due to the issuing of bonus shares in June 2017.
"We have had a good start in the year 2018. In the current year we will
again position ourselves in the market with innovative, consumer-oriented
products. That is the key prerequisite for the achievement of sustainable
growth. At the same time, we have further sharpened our 'Leifheit 2020'
strategy in some respects, such as with regard to our focus on channels and
assortments. Essentially, however, we intend to make better use of the
opportunities of digitalisation in many areas," adds Thomas Radke.
EBIT of between mEUR 17 and mEUR 18 expected - implementation of important
future-oriented projects in 2018
The Board of Management of Leifheit AG expects a return to the company's
long-term growth trajectory in the current year. It forecasts a year-on-year
increase in Group turnover of approximately 4 to 5%. In the Brand Business,
turnover is expected to increase by about 5% to 6%. For the smaller and more
volatile Volume Business, which is managed with a focus on profitability, in
2018 the Board of Management expects turnover at the level seen in 2017.
EBIT of approximately between mEUR 17 and mEUR 18 is expected. The
significant factors affecting the expected development of EBIT are, on the
one hand, predicted increases in the prices of materials and negative
currency effects on production costs. On the other hand, based on its
analysis of the last financial year, the Board of Management has developed
strategic medium-term projects that will make it possible to better exploit
the opportunities for growth presented by digitalisation, and to expand the
product categories while also sustainably increasing future profitability.
The cost of the projects will only be partially offset by optimisation and
savings.
Further information can be found in the Leifheit annual financial report
2017, which is available at financial-reports.leifheit-group.com.
About Leifheit
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 functional 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 1,100 employees. More information on Leifheit is
available online at www.leifheit-group.com, www.leifheit.de, www.soehnle.de.
Contact:
Leifheit AG
D-56377 Nassau
[email protected]
+49 2604 977218
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27.03.2018 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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Language: English
Company: Leifheit Aktiengesellschaft
Leifheitstraße
56377 Nassau
Germany
Phone: 02604 977-0
Fax: 02604 977-340
E-mail: [email protected]
Internet: www.leifheit-group.com
ISIN: DE0006464506
WKN: 646450
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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