Leifheit Aktiengesellschaft: Leifheit AG publishes report for first half-year of 2019

Leifheit AG publishes report for first half-year of 2019

• At EUR 121.5 million, Group turnover on par with previous year
• Group EBIT at EUR 5.0 million following EUR 6.8 million in previous year
• 15% turnover growth in TV advertising test market Eastern Europe
• Turnover growth of roughly 3% along with EBIT of approximately EUR 9 million to EUR 10 million expected in 2019

Nassau, 13 August 2019 - The Leifheit Group, one of the leading brand suppliers of household items in Europe, continued to pursue its chosen strategy with focus and determination in the first half of 2019. At EUR 121.5 million, Group turnover was on par with the previous year in the first half of 2019 (previous year: EUR 121.5 million) following a positive start in the first three months and a modest development in the second quarter Earnings before interest and taxes (EBIT) stood at EUR 5.0 million following EUR 6.8 million in the previous year. The decline was mainly driven by negative customer and product mix effects, which had an impact on the gross margin. Less taxes, this equalled a net result for the period of EUR 3.0 million for the first half of the year (previous year: EUR 4.4 million).

Rising foreign sales make up for declines in domestic market

The domestic market of Germany saw a slight decline in the first half of the year, with turnover of EUR 54.3 million (previous year: EUR 56.7 million). The decline was also due to special offers in the previous year that were not repeated this year. By contrast, foreign turnover increased significantly by EUR 2.4 million to EUR 67.2 million (previous year: EUR 64.8 million). At EUR 47.6 million, turnover in the Central Europe region was virtually on par with the previous year (previous year: EUR 47.8 million). Listing business boosted sales in Italy, whereas turnover in France and the Netherlands fell short of the levels seen last year.

In Eastern Europe, Leifheit's turnover rose significantly to EUR 15.3 million after EUR 13.3 million in the previous year. Henner Rinsche, Chairman of the Board of Management (CEO) of Leifheit AG, says: "In Eastern Europe, Leifheit tested a strategy and increased its investments in TV advertising, thereby raising consumer demand for Leifheit products. The attempt was a success. In the first half of 2019, we achieved turnover growth in Eastern Europe of over 15%. We now plan to roll out the strategy in Germany as well. Our aim is to stimulate demand for our products here at home too through targeted consumer advertising."

In the Household segment, the Leifheit Group generated turnover growth of 0.3% in the first half of 2019. Turnover stood at EUR 98.0 million following EUR 97.7 million in the same period in the previous year. Leifheit generated slight growth in the cleaning product category, whereas the laundry care and kitchen product categories fell short of last year's figures. Leifheit will launch a completely new range of kitchen goods in late 2019 so as to better meet customers' needs.

In the Wellbeing segment, the company was able to increase turnover significantly by 4.7% to EUR 9.4 million (previous year: EUR 9.0 million) thanks mainly to the new range of scales, especially for kitchens.

In the Private Label segment, the Group recorded a 4.8% drop in turnover to EUR 14.1 million (previous year: EUR 14.8 million). Turnover at the two French subsidiaries, Birambeau and Herby, declined.

Leifheit implements strategic package of measures consistently

"In the first half of the year, we continued to work hard on the key strategic measures to lead the Leifheit Group back to a sustainably profitable growth path. We want to do a more consistent job of seizing potential in e-commerce while overhauling selected product ranges, speeding up our processes and investing more in advertising. We will be able to complete some of the measures in the second half of the year," says Ivo Huhmann, member of the Board of Management and Chief Financial Officer of Leifheit AG.

Despite the modest turnover development in the second quarter, Leifheit believes it is on track to achieve the forecast targets for 2019. The Board of Management expects Group turnover growth of approximately 3% year on year along with earnings before interest and taxes (EBIT) of roughly EUR 9 million to EUR 10 million for 2019 as a whole.

Additional information can be found in the full report for the first half-year of 2019, which is available 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 Leifheit Group divides its operating business in to the Household, Wellbeing and Private Label segments. Leifheit and Soehnle products - two of Germany's best-known brands - are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are also active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core areas of expertise in the product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people and operates 15 locations and branches of its own around the world. Leifheit AG shares have been listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange since 1984. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.