DGAP-News: Leifheit AG: New products boost turnover for the Leifheit Group
(firmenpresse) - DGAP-News: Leifheit AG / Key word(s): Quarter Results
Leifheit AG: New products boost turnover for the Leifheit Group
11.11.2013 / 08:41
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New products boost turnover for the Leifheit Group
- Group turnover* grows 1.5% to EUR 162.4 million
- EBIT before currency effects increases from EUR 7.0 million to EUR 7.8
million
- Free cash flow reaches EUR 21.0 million
- Turnover and earnings forecast confirmed for 2013
Nassau, 11 November 2013 - In the first three quarters of the current
financial year 2013, the Leifheit Group generated turnover of EUR 162.4
million, compared with EUR 160.0 million in the same period last year.
Behind this 1.5% increase were product innovations and catch-up effects in
the second and third quarter, after the first quarter was marked by an
unusually long period of frost making unfavourable weather conditions for
the sale of some Leifheit products.
Operating profitability on the rise
Group earnings (EBIT) after the first nine months of the year amounted to
EUR 6.6 million compared to EUR 7.7 million in the same period last year.
However, the Leifheit Group was able to increase its operating
profitability: Adjusted for effects from the valuation of foreign exchange
hedges, Group EBIT rose by 11.3% to EUR 7.8 million (previous year: EUR 7.0
million). In addition, provisions for severance payments totalling EUR 1.1
million had a negative impact on earnings.
Earnings before taxes (EBT) developed in line with EBIT and reached EUR 5.2
million in the reporting period (previous year: EUR 6.4 million). The tax
rate rose from 19.2% in the first nine months of 2012 to 22.4% in the
reporting period 2013. The net result for the period reached EUR 4.1
million (previous year: EUR 5.2 million).
Beginning of a recovery on European markets
In Germany turnover rose by 1.5% to EUR 70.2 million (previous year: EUR
69.2 million). In other European countries, turnover amounted to EUR 83.5
million (previous year: EUR 81.3 million), an increase of 2.8%. This was
mainly influenced by Central Europe. Here Leifheit recorded growth of 3.3%
to EUR 71.0 million (previous year: EUR 68.8 million). At the same time,
some countries that were previously affected by the financial crisis showed
signs of recovery: Spain, Portugal and Greece improved slightly, albeit at
low levels. At EUR 12.5 million, turnover in the Eastern Europe region
reached the good level of the previous year. In the other regions of the
world, total turnover fell to EUR 8.7 million (previous year: EUR 9.5
million).
In the third quarter, Group turnover reached EUR 53.6 million (previous
year: EUR 52.1 million), an increase of 2.7%.
Brand Business on track
In the first nine months, with its well-known brands Leifheit and Soehnle,
the company booked a Brand Business turnover of EUR 130.4 million (previous
year: EUR 128.0 million). Above all, the launch of three product
innovations had a positive effect: the window cleaner, the Varioline drying
rack and the Fresh&Slim collapsible storage boxes enjoyed great
popularity among consumers. In line with the strategic direction of the
company, the Brand Business' share of Group turnover compared to the
previous year rose again slightly to 80.3% (previous year: 80.0%)
Germany boosted the segment with an increase in turnover of 3.1% to EUR
66.4 million (previous year: EUR 64.4 million). The Brand Business also
booked growth in Central Europe. Turnover amounted to EUR 45.9 million
(previous year: EUR 45.1 million), a growth of 1.8%. The countries of
Eastern Europe remained at last year's level with a turnover of EUR 12.5
million. In the rest of the world, turnover amounted to EUR 5.6 million
(previous year: EUR 6.0 million).
In the third quarter, sales in the Brand Business rose by 2.5% to EUR 41.7
million (previous year: EUR 40.6 million).
Volume Business on a stable level
In the Volume Business, Leifheit generated turnover of EUR 32.0 million in
the first nine months of the financial year, as in the previous year. The
Volume Business' share of Group turnover decreased slightly to 19.7%
(previous year: 20.0%). In Germany, the segment recorded a decline of 20.1%
and generated EUR 3.8 million (previous year: EUR 4.8 million). Among other
things, this was due to a lack of volume of special offers with non-branded
laundry care products. In contrast, turnover in the Central Europe region
rose by 6.0% to EUR 25.1 million (previous year: EUR 23.7 million).
Overseas, turnover fell on a low level by 12.7% to EUR 3.1 million
(previous year: EUR 3.5 million).
In the third quarter, the Volume Business increased slightly and reached a
turnover of EUR 11.9 million (previous year: EUR 11.5 million).
Forecast for 2013 confirmed
Dr Claus-O. Zacharias, Chairman of Leifheit AG: 'We see 2013 as a year of
transition and we are realigning Leifheit in terms of structure and
personnel. However, we are confirming our forecast of a turnover growth of
2 to 4% on the turnover for 2012 adjusted for business with the Dr Oetker
Bakeware brand. We are now assuming that the increase in sales will be at
the lower end of the range.'
Based on current analyst estimates Leifheit is assuming a US-dollar
exchange rate well below the level of the end of September 2013, so that no
effects from the valuation of foreign exchange hedges are expected.
Overall, the company therefore expects a stable earnings development with
EBIT at the level of adjusted earnings for 2012.
Growth through strategic focus
With an equity ratio of 44.0%, a free cash flow that has risen to EUR 21.0
million (previous year: EUR -5.7 million) and cash amounting to EUR 51.9
million (previous year: EUR 28.3 million) the company believes it is well
prepared for future challenges. 'In the medium term, we will continue to
pursue our goal of achieving sustainable and profitable turnover growth of
3 to 5% at Group level. At the same time, we are aiming for an above
average earnings upturn. By 2016 we aim to achieve an EBIT margin of 8% -
an ambitious but quite realistic goal,' says Dr Zacharias.
The further implementation of the 'Leifheit GO!' business strategy will
significantly contribute to this. Main contents are concentrating on
strategic focus markets in Central and Eastern Europe, the optimisation of
brand presence at point of sale by the term POS Excellence as well as the
international expansion of the E-Commerce distribution channel. Leifheit is
also focusing on strengthening its innovative power.
For more information, see the quarterly financial report for the period
ending 30 September 2013 and the company's website at:
http://www.leifheit.de/en/investor-relations/publications/financial-report
s.html
About Leifheit
Founded in 1959, Leifheit AG is one of the leading European brand suppliers
of household items. The company stands for high-quality, innovative
products with great utility and pioneering design in the sectors of
cleaning, laundry care, kitchen goods and wellbeing. Leifheit and Soehnle
are among the best-known brands in Germany. Other than in the Brand
Business, Leifheit AG operates in the service-oriented Volume Business via
its French subsidiaries Birambeau and Herby. Taking into account its
international branches, the Leifheit Group has around 1,000 employees in
total.
*On 31 December 2012 Leifheit ended the licence for the use of the naming
rights to the brand Dr Oetker Bakeware. The turnover of Dr Oetker Bakeware
amounted to EUR 4.0million in the first nine months of 2012. During the
same period this year, as part of the final completion, sales totalling EUR
1.5 million were made. For better comparability, in the comments the
turnover for this year and last year has been adjusted for the business
with Dr Oetker Bakeware.
Contact:
Leifheit AG
D-56377 Nassau
ir(at)leifheit.com
+49 2604 977218
End of Corporate News
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11.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Leifheit AG
Leifheitstraße
56377 Nassau
Germany
Phone: 02604 977-0
Fax: 02604 977-340
E-mail: ir(at)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
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