Leifheit AG: 1st half of 2011 shows continuing growth in turnover

Leifheit AG  / Key word(s): Half Year Results11.08.2011 08:37Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------- Turnover increased from EUR 107 million to EUR 111 million despiteconsumerreticence in Europe  - Special effects lead to temporary decline in earnings - Forecast for financial year 2011 confirmedLeifheit AG presents its report today on the first half of 2011. The Groupincreased turnover significantly by 4%. However, a sharp rise in commodityprices and - particularly - currency effects from hedging procurement in USdollars led to a temporary decrease in earnings.Group turnover increasedLeifheit grew its global turnover from EUR 107 million in the first half of2010 to EUR 111 million, with domestic share rising from 45% to 46%. As amanufacturer concentrating exclusively on household products, Leifheitdivides its business into the segments 'Brand Business' (Leifheit, Dr.Oetker Bakeware, and Soehnle) and 'Volume Business' (Birambeau, Herby andProject Business).Brand Business growing steadilyThe Leifheit, Dr. Oetker Bakeware and Soehnle brands increased turnover byaround 3% to EUR 88 million (H1/2010: EUR 86 million). Growth in the BrandBusiness is primarily from the German market, where turnover increased toEUR 47 million (H1/2010: EUR 45 million). Foreign business continues toreflect the different economic conditions. The biggest growth drivers inBrand Business in the first half year were laundry care (7% growth inturnover) and wellbeing (9%).Volume Business continues on the growth trackVolume Business increased turnover to EUR 23 million (H1/2010: EUR 21million), an increase of over 10%. This was primarily due to salespromotion campaigns for laundry care products, which generated high growthrates. Growth of mid-price kitchen products also made a significantcontribution here.Currency effects and raw materials prices depress consolidated earningsGroup EBIT totalled EUR 3.4 million (H1/2010: EUR 7.7 million). Thedecrease in earnings, in contrast to the significant growth in turnover, isdue to a number of special effects. These include unrealised currencylosses of EUR 0.5 million from the measurement of foreign exchange forwardcontracts for the second half of 2011, which will be settled at year-end2011. Foreign exchange forward contracts are used to hedge risks from theprocurement in US dollars. In the previous year this effect had a positiveimpact on EBIT of EUR 2.1 million. In addition, there were other realisedforeign currency losses from settled foreign exchange forward contracts andfrom the measurement of foreign currency positions in the balance sheet ofEUR 1.1 million. This contrasts with other foreign currency gains of EUR1.0 million in the previous year. Operating EBIT adjusted for foreigncurrency gains and losses increased to EUR 5.0 million (H1/2010: EUR 4.6million).Despite significantly higher commodity prices (particularly for plastics),adjustments to the product range made it possible to maintain the grossmargin at the previous year's level of 43.0% (H1/2010: 42.9%). However,this was offset by higher distribution costs, due to volume effects andexpanded marketing activities.EBT for the period ending 30 June 2011 was EUR 2.5 million (H1/2010: EUR6.6 million), with net results for the period of EUR 1.7 million (H1/2010:EUR 5.5 million). The previous year's income statement also included netresults for the period of EUR 10.1 million from the former BathroomFurnishings division, which brought earnings for the first half of 2010 toEUR 15.6 million.Outlook for 2011: growth in turnover and earningsLeifheit had a good first half of 2011 in terms of turnover, showing thatthe initiated growth strategy is bearing fruit. The new brand and marketingstrategies will help leverage potential, particularly in the BrandBusiness. There will be visible effects in 2012, chiefly in theinternational sector.By year-end Leifheit expects turnover to lie 3-5 % above the 2010 level.However, sharp rises in commodity prices and negative currency effectscould significantly reduce the resulting growth in earnings. This is beingcountered by price adjustments for numerous products in the second half of2011. Assuming a moderate increase in raw material prices, managementaccordingly still believes it will be able to report further growth inearnings over 2010, adjusted for currency effects.Additional information is available in the interim report for the periodending 30 June 2011, and athttp://www.leifheit.de/en/investor-relations/publications/financial-reports.html.Contact:Leifheit AGD-56377 +49 2604 97721811.08.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      Leifheit AG              Leifheitstraße              56377 Nassau              GermanyPhone:        02604 977-0Fax:          02604 977-340E-mail:       :     www.leifheit.comISIN:         DE0006464506WKN:          646450Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------