Leifheit AG: Leifheit AG significantly increases profitability

Leifheit AG  / Key word(s): Quarter Results14.11.2011 07:34Dissemination 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.---------------------------------------------------------------------------- 5.7 % growth in turnover in the first nine months of 2011- Operating results outstrip turnover with 10.1 % growth- Despite the downturn in the economic outlook, double-digit annual resultsexpectedNassau, 14 November 2011 - The Leifheit Group increased consolidatedturnover in the first nine months of 2011 from EUR 156 million by 5.7 % toEUR 165 million. Over the same period, EBIT rose significantly faster,growing 10.1 % from EUR 6.4 million to EUR 7.1 million. The high EBITgrowth is particularly satisfactory, as high commodity prices were stillweighing heavily on results, particularly in the Volume Business segment.The result after tax rose 67.2 % from EUR 3.6 million to EUR 6.0 million.Georg Thaller, Chairman of the Board of Management of Leifheit AG:'Leifheit was on track in the first nine months of the current financialyear. The numbers show that we are consistently following our principle ofprofit before size. This is a central goal of our three-year growthprogramme, which started in January.'Strong German economy reflected in turnoverThe German market was the driver of the overall growth in consolidatedturnover in the first nine months of 2011. The domestic share of sales rosefrom 43 % to 44 %. By contrast, there was a negative trend in severalEuropean markets and the overseas markets, as a result of significantdeterioration in the overall economic situation. The positive trend in theGerman economy, compared to other countries, the stable labour market andthe continuing willingness to buy of German consumers were all evidenthere.Brand Business maintains stable growth Leifheit's business comprises the segments Brand Business (Leifheit, DrOetker Bakeware and Soehnle) and Volume Business (Birambeau, Herby andproject business). As in the first two quarters, the Brand Business segmentmaintained stable growth in turnover. In the first nine months of 2011,Leifheit grew turnover in this segment by c. 5 % to EUR 129 million, fromEUR 123 million in the comparable period in 2010. The share of BrandBusiness in consolidated turnover was more or less unchanged from theprevious year at 78 %. While domestic turnover rose, developments in otherregions varied widely in the period under review, depending on the localeconomic situation. In terms of the Leifheit Group's various productcategories, the areas of cleaning, laundry care and wellbeing were thedrivers of growth in Brand Business. EBIT in Brand Business grewsubstantially as expected, rising from EUR 2.6 million to EUR 4.3 million.Volume Business growing by c. 9 % As in the previous year's quarter, Volume Business showed strong growth,with turnover up by c. 9 % year-on-year at EUR 36 million. The segment'sshare in consolidated turnover accordingly rose slightly from 21 % to 22 %.The main growth in Volume Business is in foreign business, mainly Franceand the US. However, growth in domestic turnover in the past nine monthshas also been extremely satisfactory, with particularly strong growth inthe laundry care category. Despite the significant increase in turnover,EBIT in Volume Business lagged behind the previous year's figure, fallingfrom EUR 3.8 million to EUR 2.8 million. Besides one-off costs of closingdown a production plant in Tunisia, results in Volume Business were hitparticularly by increased commodity prices.Forecast for full-year 2011 confirmedWith its focus on household products, the Leifheit Group is well positionedin the current economic environment to grow as planned. Leifheit isdemonstrating its innovative strength with products such as the Soehnle'Relax' range with the new massage chairs, the 'Page Evolution' kitchenscales (winners of the iF Product Design Award 2012) and the innovations inthe area of steam ironing. These products were recently presented at theBerlin IFA, and were very warmly received by the trade, so that additionalgrowth in turnover can be expected in these areas. In addition, therepositioning of the kitchen category as part of the renewed umbrella brandand product range strategy under the Three-Year Programme, should providefurther stimulus from 2012.Despite the global economic slowdown, Leifheit still expects growth inturnover of 3-5 % for full-year 2011. Looking at changes in raw materialsprices in the past months, no further impact is currently expected onresults in the fourth quarter. The adjustments in selling prices whichLeifheit has been making since the third quarter of 2011 have also partlyoffset the increase in raw materials prices. Georg Thaller: 'We expectdouble-digit EBIT in 2011, confirming our long-term growth course'.Additional information is available in the interim report for the periodending 30 September 2011, and athttp://www.leifheit.de/en/investor-relations/publications/financial-reports.html.Contact:Leifheit AGD-56377 +49 2604 97721814.11.2011 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 ---------------------------------------------------------------------------