DGAP-News: Leifheit Aktiengesellschaft: Leifheit makes successful start to financial year 2019
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DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Quarterly / Interim Statement
Leifheit Aktiengesellschaft: Leifheit makes successful start to financial year 2019
14.05.2019 / 09:26
The issuer is solely responsible for the content of this announcement.
Leifheit AG makes successful start to financial year 2019
Turnover increased by 3.4% to EUR 64.3 million
Group EBIT at EUR 3.9 million following EUR 4.7 million in previous year
Disproportionately high growth in e-commerce
Increased distribution activities in Eastern Europe
Turnover and earnings forecast for 2019 confirmed
Nassau, 14 May 2019 - Leifheit AG, one of Europe's leading brand suppliers of household items, has made a positive start to financial year 2019 and progressed in line with overall expectations. The Leifheit Group increased its turnover by 3.4% in the first three months of financial year 2019 to EUR 64.3 million (previous year: EUR 62.2 million). Earnings before interest and taxes (EBIT) came to EUR 3.9 million after the first three months of 2019, down from EUR 4.7 million in the previous year. The decline in EBIT was due to negative customer and product mix effects as well as increases in freight costs. After taxes, this equalled to a net result for the first three months of EUR 2.5 million (previous year: EUR 3.1 million).
"We worked hard on important strategic projects also in the first quarter in order to continue leading Leifheit's development in its anniversary year," said Ivo Huhmann, Board of Management member and Chief Financial Officer of Leifheit AG. "Our focus is on seizing the potential offered by e-commerce on a more consistent basis, overhauling selected product segments, modernising our IT systems and further strengthening our presence in Eastern Europe. Strong growth of roughly 19% in e-commerce business shows that we are on the right track."
The Leifheit Group was able to generate growth in its international sales regions in the reporting period. Foreign turnover increased significantly by 11.3% to EUR 35.5 million (previous year: EUR 31.9 million). As a result, the foreign share of turnover stood at 55.3% (previous year: 51.3%). Turnover in the Central Europe region rose by 6.7% to EUR 25.2 million (previous year: EUR 23.6 million) in the first quarter of 2019, primarily due to positive development in Italy. At the same time, the Group generated significant growth of 30.0% in Eastern Europe, with turnover increasing to EUR 8.5 million (previous year: EUR 6.5 million). This robust turnover growth, most of which was generated in the Czech Republic and Poland, was driven above all by increased brand-building activities. In our home market, Germany, turnover was slightly down year on year in the first quarter of 2019 at EUR 28.8 million (previous year: EUR 30.3 million). This was due to the promotional campaigns being postponed until later on in the year.
The business segments, which were previously reported in Brand Business and Volume Business, were reorganised in financial year 2018. In the Household segment, the Leifheit Group generated solid turnover growth of 3.0% in the first three months of 2019. Turnover amounted to EUR 52.1 million, up from EUR 50.5 million in the previous year. Not only did Leifheit make significant gains in the cleaning product category, sales of electrical products to clean glass surfaces also showed a slight increase. Launches of new products, such as the Leifheit CleanTenso steam cleaner, contributed to the growth.
In the Wellbeing segment, Leifheit was able to increase turnover significantly by 8.6% to EUR 5.2 million (previous year: EUR 4.8 million). The share of total turnover attributable to this segment rose slightly year on year to 8.1% (previous year: 7.7%). The new range of scales, particularly for kitchen use, was the primary driver of growth. At the same time, turnover generated with the Soehnle Medical product range more than doubled year on year.
Leifheit also generated slight turnover growth of 2.4% to EUR 7.0 million (previous year: EUR 6.9 million) in the Private Label segment. Turnover of the French subsidiary Birambeau developed positively, whereas turnover generated by subsidiary Herby declined.
For financial year 2019, the Board of Management continues to expect Group turnover growth of between 3% and 4% compared to the previous year and earnings before interest and taxes (EBIT) of between EUR 9 million and EUR 10 million.
Additional information can be found in the quarterly statement for the period ending 30 March 2019, available at http://financial-reports.leifheit-group.com.
Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The Leifheit Group divides its operating business in to the Household, Wellbeing and Private Label segments. Leifheit and Soehnle products - two of Germany's best-known brands - are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are also active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core areas of expertise in the product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people and operates 15 locations and branches of its own around the world. Leifheit AG shares have been listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange since 1984. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
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14.05.2019 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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