Leifheit Aktiengesellschaft: Growth trend confirmed in the third quarter of 2023

Leifheit Aktiengesellschaft: Growth trend confirmed in the third quarter of 2023

• Group turnover up by 3.5% to EUR 200.0 million in the first nine months of 2023
• Significant year-on-year improvement in gross margin to 41.4%
• Group EBIT climbs to EUR 5.0 million
• Free cash flow rises by EUR 5.4 million in Q3 2023, taking nine-month figure to EUR 13.0 million
• Full-year Group forecast for 2023 raised
• New CEO Alexander Reindler takes office on 1 December 2023

Nassau/Germany, 15 November 2023 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household goods in Europe, increased Group turnover by 3.5% to EUR 200.0 million in the first nine months of financial year 2023 (previous year: EUR 193.2 million), despite a market environment that remains challenging. The Leifheit Group also confirmed its growth trend in its domestic market of Germany, where turnover rose by 5.2% in the first nine months of 2023 to EUR 84.6 million (previous year: EUR 80.4 million). Targeted advertising campaigns in selected sales markets, as well as distribution gains in retail, contributed positively to turnover development in the reporting period.

The Leifheit Group generated earnings before interest and taxes (EBIT) of EUR 5.0 million in the first nine months of 2023 (previous year: EUR 3.2 million). The EUR 1.8 million increase resulted primarily from contribution margins from the increases in turnover and the rise in gross margin on account of higher sales prices and positive product mix effects. By contrast, persistently high raw material and energy prices had a negative effect on earnings, but were partially balanced out by productivity gains in manufacturing and logistics. In addition, one-off expenses relating to Board of Management changes impacted earnings and cash flow in the third quarter. Less taxes, this equalled a net result for the period of EUR 2.6 million in the first nine months of 2023.

Group liquidity rose by EUR 5.9 million in the first nine months of 2023 to EUR 42.2 million, compared to EUR 36.3 million as at 31 December 2022.

Free cash flow was up by EUR 5.4 million in the third quarter of 2023, taking the nine-month figure to EUR 13.0 million (previous year: EUR 2.0 million). The improved working capital was the main reason for this increase. Significantly lower inventories were more than able to compensate for the rise in trade receivables resulting from turnover growth.

In the Household segment, the Leifheit Group generated turnover of EUR 165.7 million in the first nine months of 2023 (previous year: EUR 158.9 million), which equates to an increase of 4.2%. The laundry care category in particular saw considerable growth in the reporting period. The continuation of successful advertising campaigns in this segment in the third quarter, such as “The electricity savers”, played a major role in the success of the company.

In the Wellbeing segment with the Soehnle brand, the company recorded turnover growth of 4.3% following a significant decline in the same period of the previous year. Turnover climbed from EUR 11.7 million in the previous-year period to EUR 12.3 million in the first three quarters of financial year 2023, with bathroom and kitchen scales once again making the largest contribution to the segment’s turnover in the reporting period.

In the Private Label segment, which mainly comprises sales of private-label brands by the French subsidiaries Birambeau and Herby, turnover fell slightly by 2.3% to EUR 22.0 million in the first nine months of 2023 (previous year: EUR 22.6 million). While Birambeau’s kitchen goods recorded slight declines in turnover, Herby’s energy-saving drying racks saw a small amount of growth.

The Leifheit Group continues to see a very challenging market environment ahead in the final quarter of financial year 2023, which will be dominated by geopolitical crises, sustained high inflation and a persistently poor consumer climate. Despite these conditions, the Board of Management of Leifheit AG raised its full-year forecast on 13 October 2023 on the basis of preliminary figures for the first nine months of 2023. As a result, the Board of Management now expects a slight increase in Group turnover for financial year 2023 compared to the previous year’s figure (previous year: EUR 251.5 million) and EBIT in the mid-single-digit million-euro range (previous year: EUR 2.8 million). On this basis, free cash flow is anticipated to be in the upper single-digit million-euro range (previous year: EUR 8.8 million).

In the fourth quarter, the Leifheit Group will continue to concentrate on its successful campaigns for profitable products and cater in particular to the consumer trend towards energy- and emissions-saving household appliances in its advertising. The focus will also be on promising innovations in the areas of laundry care and cleaning. One example is the innovative Pegasus 150 Solid Slim Black from the Leifheit dryer range, which attracted strong demand from consumers in the third quarter.

Alexander Reindler will take office as the new chairman of the Board of Management (CEO) effective as at 1 December 2023. He has spent his entire career in the consumer goods industry at Beiersdorf AG and will bring with him more than 25 years of international experience in senior marketing, sales and management positions. At the same time, Stefan De Loecker, who will remain chairman of the Board of Management on an interim basis until the end of November 2023, will return to his position as deputy chairman of the Supervisory Board of Leifheit AG.

Further information can be found in the quarterly statement for the period ending 30 September 2023, available at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/.
 

About Leifheit

Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The Leifheit Group divides its operating business into the Household, Wellbeing and Private Label segments. Leifheit and Soehnle products – two of Germany’s best-known household brands – are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.