Leifheit Aktiengesellschaft: Positive development in Brand Business increases turnover and earnings in the first half-year

Leifheit AG: Positive development in Brand Business increases turnover and earnings in the first half-year

• Group turnover increases by 4.5%
• Strong growth in Brand Business by 6.1%
• Further improvement in EBIT to EUR 10.4 million
• Outlook for 2015: Turnover forecast slightly up, earnings at the top end of the forecast range

Nassau, 12 August 2015 - In the first half-year of 2015 the Leifheit Group's turnover rose by 4.5% to EUR 113.2 million. Key to this was the strong growth in the Brand Business segment. However, the Volume Business was slightly down on the previous year.

"After a strong start to the new financial year, we have continued to make good progress in the second quarter. The total for the first half-year already shows the first positive results generated by our extensive activities, which we are now gradually implementing as part of the Group strategy 'Leifheit 2020'", says Thomas Radke, Chairman of the Board of Management at Leifheit AG.

Disproportional rise in Group EBIT

The Leifheit Group grew its operating result (EBIT) in the reporting period by EUR 2.3 million or 28.0% to EUR 10.4 million. The EBIT margin rose to 9.2% compared with 7.5% in the same period of the previous year. The Group benefitted from increased contribution margins generated by the growth in turnover and from a positive foreign currency result, which reached EUR 1.9 million in the first half-year - up by EUR 1.4 million on the same period of the previous year. The EBIT adjusted by the foreign currency result was EUR 8.5 million, 10.3% up on the comparable value in the previous year.

After deduction of tax, the Leifheit Group made a net profit for the period of EUR 6.8 million - a clear increase of 30.7%.

Glowing results for Brand Business

In the first half-year of 2015, turnover in the Brand Business segment rose by 6.1% to
EUR 95.9 million. The Leifheit and Soehnle brand products are managed in this segment. There was an upturn in the Brand Business, particularly in Germany, Austria and the Czech Republic. Particularly popular were products from the cleaning and laundry care categories.

The positive turnover development of the first half-year of 2015 increased the share of the Brand Business in the Group-wide turnover to around 85%. The segment's EBIT rose by
EUR 9.1 million, compared with EUR 6.9 million in the previous year.

Volume Business remains slightly down on the previous year

The development in the Volume Business segment must also be considered in association with the strategic concentration on the Brand Business. Turnover in the first six months of 2015 was EUR 17.3 million compared with EUR 17.9 million in the previous year. The company achieved gains in the product category laundry care with its French subsidiary Herby. However, turnover from kitchen goods and in the project business in the US fell.

The share of the Volume Business in the Group's overall turnover was around 15% in the first half-year. The segment's EBIT reached EUR 1.3 million, slightly up on the previous year's value of EUR 1.2 million.

Outlook for 2015: Turnover forecast slightly up, earnings at the top end of the forecast range

With the publication of the 2015 half-year report, Leifheit has increased its turnover forecast: The Company is currently anticipating an increase in turnover growth at the Group level of between 3% and 4% for 2015. This represents a rise of one percentage point in the forecast range. Business with the Leifheit and Soehnle brands will also continue to be central to the Group development determined by the "Leifheit 2020" strategy. The current target is for an increase in turnover for 2015 of between 4% and 5%. Previously, Leifheit had expected an increase of between 3% and 4% in this segment. The Group expects constant development of the Volume Business, which is managed with a particular focus on profitability.

The company is anticipating an EBIT at the top end of the forecast range between EUR 19 million and EUR 20 million for 2015 overall, based on a year-end exchange rate of USD 1.07 to EUR 1, unchanged from 31 March 2015.

Expansion of logistics capacities in the framework of the new strategy

In year one of the extensive Group strategy "Leifheit 2020", the company is undertaking pioneering investments: As announced in the annual financial report, the ground-breaking ceremony took place for a new logistics hall in Blatná in the Czech Republic. The construction of the new distribution centre will further strengthen Leifheit's market position, as the company will be able to supply the major growth regions in Eastern Europe even more efficiently and flexibly in the future. Leifheit is expecting an overall investment volume of around EUR 3 million at this location for 2015.

New shareholder structure with strong increase in floating stock

As already reported in the first quarter of 2015, the shares of the long-standing majority shareholder Home Beteiligungen GmbH were reallocated in spring. The shares were allocated to reputable international institutional investors. According to the definition of the German stock index, Leifheit AG had a free float of around 76% at the end of June. "We are pleased with the positive feedback from institutional investors to the strong increase in free float. The interest that our new investors are showing in our share validates the course we have set for the continued strategic development of the Group", said Radke.

Additional information is available in the financial report for the first half of 2015, which is available online at http://financial-reports.leifheit-group.com.

About Leifheit

Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The company stands for high quality, innovative products with great utility and functional design in the sectors of cleaning, laundry care, kitchen goods and wellbeing. Leifheit and Soehnle are among the best-known brands in Germany. Other than in the Brand Business, Leifheit AG operates in the service-oriented Volume Business via its French subsidiaries Birambeau and Herby. The Leifheit Group including its international branches employs a staff of about 1,000 employees. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.com, www.soehnle.com.