Leifheit Aktiengesellschaft: Strong rise in earnings in the second quarter, forecast 2020 with significant turnover and earnings growth

Leifheit AG: Strong rise in earnings in the second quarter, forecast 2020 with significant turnover and earnings growth

Nassau, 15 July 2020 - Leifheit AG (ISIN DE0006464506) has achieved significantly higher earnings in the second quarter 2020 than in the previous year. According to preliminary calculations earnings before interest and taxes (EBIT) of the Leifheit Group stood at EUR 4.5 million in the second quarter and thus roughly quadrupled compared to the previous year's figure of EUR 1.1 million.

After the first six months of the 2020 financial year Group EBIT reached EUR 8.8 million, 75.5% above the result of the first half of 2019 of EUR 5.0 million. The positive earnings development is essentially based on the consistent implementation of the Scaling up Success growth strategy. Group turnover increased by 7.3% compared to the previous year to EUR 130.4 million. At the same time, the improvement in gross margin from 42.8 % to 44.1% and a strict cost management contributed particularly to the EBIT growth.

Forecast 2020

The Board of Management made a forecast for the financial year 2020 before possible impacts of the COVID-19 pandemic, which anticipated a Group turnover growth of about 8% and an EBIT of between EUR 9.5 million and EUR 10.0 million. Due to the dynamic development and the uncertainties associated with the corona pandemic in the past few months, the impact on Leifheit's business development has not been realistically assessable so far.

In the course of preparing the half year financial statements the Board of Management has updated its forecast for the financial year 2020. The Management Board now assumes a growth of Group turnover between 7% and 9% and Group EBIT of between EUR 12 million and EUR 15 million for the financial year 2020.

The forecast is based on the assumption that there will be no further significant restrictions due to the COVID-19 pandemic in the markets and sales channels relevant to Leifheit.

Information on the development in the second quarter and in the first half of 2020 is based on preliminary calculations. As a result, there may be deviations from this information in the financial figures that will be published in the half-year financial report on 13 August 2020.