DGAP-News: Leifheit Aktiengesellschaft: Leifheit ends 2017 on par with the previous year
08.02.2018 (www.4investors.de) -
DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Development of Sales/Preliminary Results
Leifheit Aktiengesellschaft: Leifheit ends 2017 on par with the previous year
08.02.2018 / 12:49
The issuer is solely responsible for the content of this announcement.
Leifheit ends 2017 on par with the previous year
- Group turnover at EUR 236,8 million, according to preliminary figures
- Slight growth in strategically important Brand Business
- Solid rise in turnover in Germany and Eastern Europe
- EBIT forecast at the lower end of the range confirmed
Nassau, Germany, 8 February 2018 - According to preliminary figures, the Leifheit Group generated turnover of EUR 236.8 million in financial year 2017, which was approximately on par with the previous year (EUR 237.1 million). Brand Business again succeeded in generating a slight increase in turnover last year. The Leifheit brand and business in the e-commerce sales channel were the main growth factors.
The Group's domestic business recorded turnover growth of 2,5% to EUR 96.9 million, as compared to EUR 94.5 million in the previous year. This development was primarily influenced by the Leifheit brand and successful campaigns in Volume Business. The Eastern Europe region grew strongly, with a 11.3% increase in turnover to EUR 27.8 million (previous year: EUR 25.0 million). The markets in Hungary and the Czech Republic were the main drivers of growth in this region. By contrast, turnover development in Central Europe was lower by 4.6% and stood at a total of EUR 102.9 million (previous year: EUR 107.8 million).
The strategically important Brand Business continued its recovery as 2017 drew to a close and posted a slight rise of 0.5 % year on year. Turnover amounted to EUR 196.7 million (previous year: EUR 195.8 million), placing it within the range defined in the most recent forecast. The Leifheit brand's cleaning and laundry care product categories also developed positively. By contrast, the kitchen goods and wellbeing categories were forced to accept a drop in turnover. Viewed over the course of the year, higher turnover in the e-commerce sales channel and with discounters were instrumental to the growth in Brand Business.
As in the previous year, the significantly smaller Volume Business also recorded a decline in turnover of 2.8% in financial year 2017. As a result, turnover in Volume Business, which is geared towards profitability, stood at EUR 40.1 million, as compared to EUR 41.3 million in 2016. Volume Business in the German market saw positive development, as did Project Business.
"After a weak third quarter, we succeeded in once again strengthening our business as 2017 drew to a close, thereby generating Group turnover that was on par with the previous year. The launch of new products has also had a positive effect," says Thomas Radke, CEO of Leifheit AG.
Based on the preliminary turnover figures, Leifheit confirms the most recent earnings forecast for the past financial year, which predicted EBIT of EUR 2 million to EUR 3 million less than in the previous year (2016: EUR 22.1 million), albeit at the lower end of the range. The forecast takes into account non-recurring expenses for the restructuring of sales activities in Brand Business.
The company will release its final figures for 2017 when it publishes its full annual financial report on 27 March 2018.
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.
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08.02.2018 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.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
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