Leifheit Aktiengesellschaft: Outlook for 2024

Nassau/Germany, 21 February 2024 – Based on the preliminary business figures for 2023, the Board of Management of Leifheit AG (ISIN DE0006464506) decided the forecast for business year 2024 today.

According to preliminary calculations the Leifheit Group has achieved the turnover and earnings forecast for financial year 2023 that was recently adjusted upwards. The Leifheit Group generated turnover of EUR 258.3 million (2022: EUR 251.5 million), and thus achieved a slight growth of 2.7%, as recently forecasted.

According to the provisional figures in the 2023 consolidated financial statements, earnings before interest and taxes (EBIT) increased to EUR 6.0 million (2022: EUR 2.8 million) and is therefore in the mid-single-digit million-euro range, as recently forecasted. EBIT of EUR 6.0 million was achieved despite one-off expenses of EUR 2.7 million in connection with the changes in the Management Board. Preliminary free cash flow increased to EUR 12.1 million (2022: EUR 8.8 million) and was thus slightly above the recently forecasted upper single-digit million-euro range.

Forecast for 2024

The Leifheit Group continues to face challenging conditions in the financial year 2024. Nevertheless, the Board of Management of Leifheit AG anticipates a slight growth in Group turnover versus previous year. In the first quarter of 2024 turnover is expected to decrease slightly compared to the same period of 2023.

In the wake of the attacks by the Houthi rebels in the Red Sea, Leifheit has been facing a massive increase in sea freight costs since the beginning of 2024, which will have a negative impact on earnings, particularly in the first quarter, but also in 2024 as a whole. At the same time, the forecasted top-line growth and cost-cutting and efficiency measures will have a positive effect on earnings. Against this backdrop, the Board of Management predicts Group EBIT in the corridor of EUR 10 million to EUR 12 million.