14.08.2018
Leifheit Aktiengesellschaft DE0006464506
DGAP-News: Leifheit Aktiengesellschaft: Leifheit sees slight turnover growth
DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Half Year
Results/Interim Report
Leifheit Aktiengesellschaft: Leifheit sees slight turnover growth
14.08.2018 / 08:02
The issuer is solely responsible for the content of this announcement.
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Leifheit sees slight turnover growth
* EBIT on par with previous year
* Brand Business turns in stable performance
* Volume Business increases
* Forecast for 2018 slightly adjusted
Nassau, Germany, 14 August 2018 - The Leifheit Group closed out the first
half of 2018 with slight growth in turnover. The Group offset the turnover
shortfall from the first three months of 2018 in the second quarter and
generated 0.5% growth in turnover to mEUR 121.5. This growth was due in
particular to solid performance in the domestic market of Germany. At mEUR
6.8, the company generated earnings before interest and taxes (EBIT) in the
first six months of 2018 that were exactly on par with the previous year.
In the first six months of 2018, the Leifheit Group continued to see
substantial growth in Germany. Turnover rose by 2.1% to mEUR 56.7 (previous
year: mEUR 55.6), which accounts for a share of total turnover of 46.7%
(previous year: 46.0%). The growth was driven equally by Brand Business and
Volume Business.
In contrast, turnover in foreign markets decreased by 0.9% to mEUR 64.8.
Prompting this development in particular was the drop in turnover outside of
Europe owing to the strategic focus on the Central and Eastern European
markets. Turnover in Eastern Europe also declined due to significant brand
building measures in the previous year. Similar programmes have been planned
for the later quarters of this financial year. The sales and distribution
region of Central Europe remained largely stable.
In the first half of 2018, the Group generated turnover growth in Brand
Business comprising the brands Leifheit and Soehnle of 0.2% to mEUR 103.4
(previous year: mEUR 103.1). Growth was solid in the Leifheit brand's
cleaning and laundry care product categories. Products for floor cleaning
and drying made a substantial contribution to this development, whereas
sales of electrical appliances for surface cleaning fell short of
expectations. Product innovations from the Soehnle brand for fitness, health
and air treatment contributed significantly to the growth in the brand's
turnover.
Volume Business, which is much smaller and managed with a clear focus on
profitability, generated an increase in turnover in the first six months of
2018 of 1.9% to mEUR 18.1 (previous year: mEUR 17.7). Kitchen products from
Birambeau and a boost in promotional business were the factors driving
growth in Volume Business. As a result, they more than offset falling
turnover from laundry care products and in Project Business.
For the first half of 2018, the Leifheit Group reported EBIT on par with the
previous year of mEUR 6.8 (previous year: mEUR 6.8). After a decrease in
earnings in the first quarter, EBIT in the second quarter of 2018 rose by
26% to mEUR 2.1 (previous year: mEUR 1.6). Lower non-recurring expenses, a
decline in administrative costs and a significant improvement in the foreign
currency result helped stabilise EBIT. In the first half of the year, the
net result for the period likewise reached the level from the previous year
of mEUR 4.4.
"After seeing declining turnover in the first three months due partly to
weather conditions, we succeeded in generating growth again in the second
quarter, even if it was lower than we imagined. At the same time, we
continued to expand our market position in Germany and saw further gains
both in Brand Business and Volume Business. However, we currently evolve
further new strategies for sustained improvement of growth and
profitability. At the same time we are pressing ahead with strategic
measures to better seize the opportunities of digitalisation and to pick up
the pace for the development of new products in order to continue
strengthening the ranges of our brands. In addition, programmes for
enhancing the efficiency and effectiveness of sales and distribution and of
the entire value chain have been initiated. We will also be stepping up our
efforts to expand geographically in the Asian markets in future. Through
these measures, we aim to swiftly return to broader sustainable growth,"
says Thomas Radke, Chairman of the Board of Management of Leifheit AG.
Forecast adjusted slightly
The Leifheit Group has detailed its forecast for the remainder of financial
year 2018. The weak demand in the market for electrical surface cleaning
appliances may have a more lasting impact than initially assumed. However,
the Group expects to see appreciable growth above all due to the launch of
new products in Brand Business. For financial year 2018, the Leifheit Group
anticipates turnover growth of 2.5% to 3.5%, compared to most recently
expected growth slightly below of 4% to 5%. The company expects growth of 3%
to 4% in Brand Business, while it believes there will be no change in
turnover in Volume Business, which is slated to be on par with 2017. The
Leifheit Group now forecasts earnings before interest and taxes for
financial year 2018 of approximately mEUR 16 to mEUR 17. So far, it had
expected to achieve EBIT at the lower end of mEUR 17 to mEUR 18.
Additional information can be found in the financial report for the first
half-year ending 30 June 2018, available at
http://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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14.08.2018 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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