Leifheit AG: Q1: growth in turnover in all segments

Leifheit AG  / Key word(s): Quarter Results

12.05.2011 08:33

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

- Group turnover improved from EUR 56 million to EUR 59 million 
- Currency effects impact results
- Forecast confirmed: further growth in 2011 annual results

Nassau, 12 May 2011 - Leifheit AG presents its report today on the first
quarter of 2011. With an increase of about 5 % the Group again achieved
significant growth in turnover, although currency effects impacted
consolidated results.

Leifheit grew its global turnover from EUR 56 million in Q1 2010 to EUR 59
million, with domestic share rising from 45% to 47%. Gross margin improved
to 42.9 % (Q1/2010: 42.0 %).

EBIT was EUR 1.5 million (Q1/2010: EUR 2.9 million). The decrease is
primarily due to unrealised currency effects from the measurement of
forward foreign exchange contracts which resulted in a loss of EUR 0.6
million; in 2010 the same effects contributed EUR 0.5 million to EBIT.

EBT amounted to EUR 1.1 million (Q1/2010: EUR 2.5 million), with results
for the period after tax of EUR 0.6 million. Q1/2010 net results after tax
for continuing operations amounted to EUR 1.8 million; the Group income
statement also benefited from the contribution to results of EUR 1.3
million by the sold Bathroom Furnishings division, so that the results for
Q1/2010 totalled EUR 3.1 million.

Brand Business and Volume Business growing rapidly

As a manufacturer concentrating exclusively on household products, Leifheit
divides its business into the segments 'Brand Business' (Leifheit, Dr
Oetker Bakeware, and Soehnle) and 'Volume Business' (Birambeau, Herby and
Project Business).

Brand Business again reports growth

The Leifheit, Dr Oetker Bakeware and Soehnle brands increased turnover by
3% to EUR 47 million (Q1/2010: EUR 46 million). Growth in the Brand
Business again came from the German market, where turnover rose to EUR 26
million (Q1/2010: EUR 24 million). Foreign business continues to reflect
the prevailing local economic conditions. Cleaning products continue to be
a reliable growth engine in the Brand Business segment, with 9% growth.
The contribution to consolidated operating EBIT (adjusted for the effects
of forward foreign exchange contracts) was unchanged from the previous year
at EUR 1.3 million. Higher distribution costs and foreign exchange losses
more than offset the positive trend in margins in Brand Business.
 
Volume Business on the growth track

Volume Business increased turnover to EUR 12 million (Q1/2010: EUR 10
million), an increase of 12%. This is primarily due to business with
kitchen goods in the medium price bracket, which showed very high growth,
and laundry care also made a significant contribution.

Volume Business contributed EUR 0.8 million (Q1/2010: EUR 1.1 million) to
adjusted operating EBIT, reflecting the impact of higher purchasing prices.
EBIT in the previous year also benefitted from one-time government aid in
France totalling EUR 0.2 million.

Outlook for 2011: strong growth at all levels

With its growth in turnover of 5% in Q1/2011, Leifheit has proved that the
company can follow through on its growth predictions. Now, it is important
to utilise further potential in both Brand and Volume Business. The new
brand and marketing strategies currently being developed will make a major
contribution to this.

By year-end Leifheit expects turnover to lay 3-5% above the 2010 level.
However, sharp increases in commodity prices and negative currency effects
could significantly reduce the resulting growth in earnings. Assuming a
moderate increase in commodity prices, management believes it will be able
to report further growth in results, adjusted for currency effects.

Additional information is available in the quarterly report for the period
ending 31 March 2011, and at 
http://www.leifheit.de/en/investor-relations.html.


Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218




12.05.2011 DGAP's Distribution Services include Regulatory Announcements, 
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      Leifheit AG
              Leifheitstraße
              56377 Nassau
              Deutschland
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 Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------