Leifheit Aktiengesellschaft: Preliminary figures for financial year 2022

Leifheit AG: Preliminary figures for financial year 2022

• At EUR 251.5 million, Group turnover down on previous year’s record
• Group EBIT in low single-digit million range
• Jump in demand for energy-saving laundry dryers

Nassau, 24 February 2023 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, today released preliminary unaudited financial figures for financial year 2022. The Group figures for financial year 2022 are within the ranges most recently forecast.

According to preliminary calculations, the Leifheit Group generated turnover of EUR 251.5 million in 2022, corresponding to a fall of 12.8% compared with the record turnover of 2021. In view of the rise in inflation, the consumer climate in the core markets of the Leifheit Group dampened noticeably in financial year 2022. However, Group turnover continued at a high level in 2022 and was up significantly, by roughly 7%, on the same period in the pre-coronavirus year of 2019.

Despite extraordinarily difficult market conditions, the Leifheit Group generated a positive Group result. According to the preliminary status of the consolidated financial statements, earnings before interest and taxes (EBIT) will amount to EUR 2.8 million and will therefore lie within a low single-digit million range as recently forecast. Earnings were impacted primarily by the lack of contribution margins due to lower turnover, as well as the drastic rise in material and energy prices.

Henner Rinsche, Chairman of the Board of Management of Leifheit AG, says: “In 2022, the Leifheit Group was confronted by an exceptionally challenging market environment. In light of cautious consumer spending and the sharp rise in production prices, we have focused on strict cost and resource management. We were able to roll out higher sales prices, which gradually started to have an effect throughout the year, but were only able to offset some of the cost increases on the procurement side. Meanwhile, in the course of our advertising activities, we shifted the focus to the sustainability and energy efficiency of our products with our ‘Electricity Savers’ campaign. Our efforts are striking a chord with consumers, as the increased demand for our energy-saving laundry dryers and rotary dryers shows. We will continue to highlight the high quality and durability of our products as part of our advertising campaigns.”

In its domestic market of Germany, the Leifheit Group’s turnover fell by 21.8%, from EUR 126.4 million in 2021 to EUR 98.8 million in 2022. There, a historically high level of consumer restraint due to the Russia-Ukraine war in conjunction with increased energy prices had an impact in the reporting year.

In Central Europe, turnover fell less sharply by 4.5 % in financial year 2022 and reached EUR 111.2 million (2021: EUR 116.4 million). Despite the successful expansion of distribution network in countries such as France and Italy, turnover in this region was down year on year due to a noticeable decline in people’s appetite for spending on consumer goods. By contrast, turnover increased in Spain and the Netherlands.

Turnover in the Eastern Europe sales region stood at EUR 34.2 million in 2022, compared to EUR 37.9 million in the previous year. In the markets outside Europe, turnover amounted to EUR 7.3 million in 2022, which was only slightly below the previous year (2021: EUR 7.6 million). 

Looking ahead to the current financial year, Rinsche says: “The Leifheit Group is again up against difficult conditions in financial year 2023, even though the general consumer climate has brightened somewhat. We will continue to focus on positioning the Group cost-efficiently and taking targeted measures to counteract the sharp rise in prices for energy, freight and materials. In addition, we plan to improve our processes and move closer to our customers.”

In the Household segment with the Leifheit brand, by far the largest segment, turnover decreased from EUR 230.8 million in 2021 to EUR 204.2 million in 2022. In the significantly smaller Wellbeing segment with the Soehnle brand, turnover declined from EUR 25.5 million to EUR 16.1 million. In the Private Label segment with the French subsidiaries Birambeau and Herby, turnover fell only slightly to EUR 31.2 million in 2022, following EUR 32.0 million in the previous year.

Leifheit will publish the final figures for financial year 2022 with the full annual report on 29 March 2023.

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.