DGAP-News: Leifheit AG / Key word(s): Half Year Results
Leifheit AG: Earnings increase by 52% in first half of 2012
09.08.2012 / 09:35
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Leifheit AG: Earnings increase by 52% in first half of 2012
- Group EBIT increases from EUR 3.4 million to EUR 5.1 million
- Group turnover slightly below previous year's level
- 2012 earnings forecast confirmed
Nassau, 9 August 2012 - The Leifheit Group posted turnover of EUR 110.5
million in the first half of 2012, slightly below the prior-year level of
EUR 111.4 million. In contrast to this, EBIT of the Leifheit Group
increased considerably by 51.9% from EUR 3.4 million to EUR 5.1 million.
Unrealised currency effects from the measurement of forward foreign
exchange contracts totalling EUR 0.5 million had a negative impact on EBIT
in the same period of the previous year. Adjusted for this effect, the
comparable figure for the previous year was EUR 3.9 million, leading
overall to a considerable increase of 33.4% in EBIT. Successful
optimisation measures and focusing on high-margin business as part of the
'Leifheit GO!' business strategy are responsible for this significant
improvement.
After taxes, the company generated EUR 3.5 million in net result for the
period, more than double the prior-year amount of EUR 1.7 million. 'Despite
the moderate development in turnover in the first half of 2012, our efforts
to generate higher efficiency and strengthen the margins are having
beneficial effects. Increased profitability is the result of our business
strategy', stated Georg Thaller, CEO of Leifheit AG.
Focus markets with vastly different development
As one of the leading European suppliers of branded household items,
Leifheit's turnover is heavily dependent on consumer confidence in
different sales markets. For this reason, the European sovereign debt
crisis greatly affected Leifheit's turnover, especially in the southern
European countries. In contrast, some of the company's focus markets that
were not so hard-hit by the crisis performed well, for example, the
Netherlands, Austria, Russia and France. Leifheit increased turnover by
4.0% overall in Europe excluding Germany. In Germany, turnover declined by
2.8%. In particular, poor weather in the spring months had a negative
influence on business with rotary driers.
Brand Business grows, Volume Business deteriorating
Business from the Leifheit, Dr. Oetker Bakeware and Soehnle brands was the
pillar of Group turnover development in the past half-year as well. Brand
Business deteriorated in Southern Europe, but performance in other markets
offset this. For example, turnover from Brand Business in the first half of
2012 was EUR 90,0 million, or up by 1.6% from the previous year. Its share
of Leifheit's total turnover further increased in line with strategic
corporate decisions and reached 81.4%. The Group recorded a decline in
turnover of 10.4% to EUR 20.5 million in the Volume Business. This
development is mainly due to a decline in Project Business with a US
customer.
Forecast turnover adjusted, earnings forecast confirmed
Due to the decreasing momentum of the global economy and the ongoing
negative influence of the debt crisis on consumer confidence in Europe,
Leifheit believes its own economic prospects have worsened. 'Even though we
consider ourselves to be well positioned: We cannot escape increasing
consumer restraint, which is due in large part to the ongoing sovereign
debt crisis in Europe', explained Thaller. The forecast turnover was
therefore adjusted. The turnover objective for 2012 as a whole is now for
2% growth. The company also continues to assume that it can generate an
increase of more than 10% in adjusted EBIT for financial year 2012 and thus
confirmed the forecast of a strong earnings upturn. The prerequisite for
this is a stronger exchange rate for the euro vis-Ã -vis the US dollar.
About Leifheit
Formed in 1959, Leifheit AG is one of the leading European suppliers of
branded household items. The Company is a byword for high quality
innovative products with high consumer benefit and pioneering design in the
core areas of cleaning, laundry care, kitchen and wellbeing. Leifheit, Dr
Oetker Bakeware and Soehnle are among the best-known German brands. Besides
its Brand Business segment, Leifheit AG is active in the service-oriented
Volume Business segment through its French subsidiaries Birambeau and
Herby. With its international branches, the Leifheit Group has around 1,100
employees.
Additional information can be found in the half-yearly financial report as
at 30 June 2012 and at
http://www.leifheit.de/en/investor-relations/publications/financial-report
s.html.
Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218
End of Corporate News
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09.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Leifheit AG
LeifheitstraÃe
56377 Nassau
Germany
Phone: 02604 977-0
Fax: 02604 977-340
E-mail: ir@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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181072 09.08.2012
DGAP-News: Leifheit AG: Earnings increase by 52% in first half of 2012
| Source: EQS Group AG