Leifheit AG: Sales on par with previous year despite Euro crisis

Leifheit: Sales on par with previous year despite Euro crisis

• Sales increase in the Brand Business
• Operating result (EBIT) rises by 10 percent
• POS excellence is the lead topic at the Ambiente 2013

Frankfurt/Nassau, 14 February 2013 - Despite the crises in the Southern European countries, the Leifheit Group, one of the leading European brand suppliers of household articles, has accomplished to increase its sales in the business year 2012 according to the preliminary calculations. The group's turnover climbed from EUR222.1 million to EUR224.2 million, which is a plus of nearly one percent compared to the previous year. Adjusted by a one-time consolidation effect in the year 2012, the turnover was on par with the previous year.

There were strong differences in performance among the main sales regions in Europe during the year 2012. In the focus countries of Central Europe, such as Germany, France, the Netherlands or Austria, Leifheit has generated clearly positive growth rates in part. Almost all Southern European countries in contrast have developed regressively in the course of the persisting Euro and debt crisis. However, double digit sales increases could be achieved in the Eastern European region.

With a plus in sales of 4.2 percent, which rose to EUR177.7 million, the Brand Business has closed the business year 2012 successfully. Adjusted by the special effect, growth was at 2.5 percent. The portion of the turnover from the most important business segment that holds together the brands Leifheit and Soehnle increased to 79.3 percent. Most of all, the e-commerce sales channel contributed to the growth as Leifheit is continuously expanding it further. The company reported a plus of 25.0 percent in this segment with an increase to EUR13.8 million.

In the second segment, the Volume Business, sales declined by 9.9 percent to EUR46.5 million. Among the reasons for this were the stagnating project business in the USA as well as turnover missing at the French subsidiaries, Birambeau and Herby.

Significant growth of the result

The group's result has once again taken a positive turn in the business year 2012. According to preliminary calculations, the company expects a considerable increase in the EBIT of about ten percent compared to previous year's result as adjusted by extraordinary effects. The company will publish the final, detailed figures of the business year 2012 on 9 April 2013.

Optimal presentation of strong brands

The continuation of the qualitative growth by a comprehensive POS Excellence Initiative is at centre stage for Leifheit at this year's Ambiente trade fair hosted in Frankfurt from 15 to 19 February. On a floor space of 160 square metres, Leifheit is presenting its new brand shop for the first time in the course of the Ambiente to showcase the entire product portfolio of the Leifheit and Soehnle brands, as 70 percent of purchase decisions are made at the point of sale. A customer-oriented product presentation and providing quick orientation on the sales shelf is essential in sparing consumers unnecessary searches and making the purchase decision as easy as possible for them.

'The success of our new POS concept is based on the combination of high-quality products, packaging drawing strong attention, an intelligent logic for searching the shelves and of course an efficient brand communication. The aim is to enable the consumer to experience our product with all senses', says Georg Thaller, Chairman of the Board of Directors at Leifheit AG. With the attractive mixture of optimised shelves, product presentation and accompanying communication, Leifheit supports the trading-up strategies of its trade partners and ensures a quicker product turnaround, higher sales and an improved value creation.

Product innovation at the Ambiente

At the Ambiente, the company is furthermore presenting a variety of product innovations in the four categories of cleaning, laundry care, kitchen and wellbeing. Among them is the new Clean Twist System with integrated spinning mechanism in the shaft and the Varioline laundry rack that is highly adjustable owing to its variable drying rods. Tedious window cleaning becomes easy as 1-2-3 with the practical Leifheit battery powered window vacuum cleaner, which received the Plus X Award. In the kitchen category, Leifheit relies on foldable and space-saving fresh storage containers. In addition, four new clever kitchen helpers were awarded the 2013 Kitchen Innovation Prize. Health and fitness conscious consumers will be pleased about the new generation of Soehnle Web-Connect scales. They enable keeping an eye on the determined weight at all times as it is made transparent via an internet portal or smart phone application.

Positive outlook into the business year 2013

The Leifheit Group has shown a positive development in the past year despite the difficult economic environment. The Chairman of the Board of Directors, Georg Thaller, is optimistic also for the current business year 2013: 'With such a solid financial basis, leading market position, high brand recognition, innovative product ideas and sales concepts, we are organised optimally for the future. At the present time we continue to maintain the long-term goal of additional sales and results increases.'

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 pioneering design in the segments of cleaning, laundry care, kitchen and well-being. 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.

Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218