Leifheit AG: Leifheit reports first quarter growth despite weak consumption

Leifheit AG / Quarter Results

11.05.2010 08:30

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Leifheit reports first quarter growth despite weak consumption

- EBIT increases to EUR 4.7 million (Q1/2009: EUR 2.6 million) 
- Result for the period of EUR 3.1 million ahead of budget (Q1/2009: EUR
1.4 million)
- Consolidated turnover increased to EUR 75 million (Q1/2009: EUR 70
million)
- Tighter focus on core business 

Nassau, 11 May 2010 - Leifheit AG presents its report today on the first
quarter of 2010. With focused marketing and communication activities, the
company has again boosted all key components of turnover and earnings. EBIT
was significantly increased to EUR 4.7 million (Q1/2009: EUR 2.6 million),
while results for the period soared to EUR 3.1 million (Q1/2009: EUR 1.4
million).

Strong growth in results

Despite the continuing tense consumer mood, Leifheit grew turnover
worldwide in Q1/2010 by 7% to EUR 75 million (Q1/2009: EUR 70 million). The
domestic share rose from 44% to 47%.
 
Besides the rise in turnover, the slimmed-down organisational and cost
structure and currency effects led to a significant increase in EBIT to EUR
4.7 million (Q1/2009: EUR 2.6 million). This not only got Leifheit off to a
success start in 2010, but also outperformed budget.

Gross margin was increased from the previous year to 44.1% (Q1/2009:
41.8%), and EBT increased EUR 2.2 million to EUR 4.2 million.

Household Products division: reliable growth

The traditionally strong Household Products division against made a
decisive contribution to the Group's success in the period under review.
The Leifheit, Dr. Oetker Bakeware, Soehnle, Birambeau and Herby brands
boosted their turnover 4% compared to the previous year to c. EUR 55
million (Q1/2009: EUR 53 million).

While growth was primarily concentrated in Germany, with turnover of EUR 25
million (Q1/2009: EUR 23 million), sales also developed very positively in
Belgium, Austria and the USA. The laundry care category was particularly
successful, confirming the success of the focus strategy. Given the
economic conditions, it was still too soon for the eastern European markets
to share in the growth.

The restructuring measures completed last year led to a substantial
increase to EUR 3.7 million in the Household Products division's
contribution to consolidated EBIT (Q1/2009: EUR 2.3 million).

Bathroom Furnishings division returns to growth

The three Bathroom Furnishings brands Spirella, Kleine Wolke and Meusch
showed clear growth in the first quarter, with turnover rising to EUR 20
million (Q1/2009: EUR 17 million), representing 27% of consolidated
turnover. The domestic share grew significantly from the previous year to
52% (Q1/2009: 47%). Double-digit growth was also achieved in Austria,
Belgium, Spain and Russia. The Kleine Wolke brand was particularly
successful, growing turnover 30% as a result of special campaigns.

As a result, the Bathroom Furnishings division boosted its contribution to
consolidated EBIT to EUR 1.8 million (Q1/2009: EUR 1.3 million).

Leifheit strategy: maintaining a consistent focus 

The heart of the strategy is the focus on the four core business areas
cleaning, laundry care, kitchen and scales, which have been the biggest
source of the company's success to date and also promise a successful
future. Another part of this strategy is that Leifheit will dispose of
business areas outside these core areas, as favourable opportunities arise.
Last year, the ladders business was sold for this reason. At the same time,
the company intends to further strengthen and grow its core business
through strategic acquisitions. By implementing this strategy, the company
will give Leifheit brands a sharper profile in the market, ultimately
contributing to increased awareness among customers and resulting increased
turnover in the core business.

Additional information is available in the financial report for the first
quarter 2010 to 31 March, 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




11.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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, Hannover, München, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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