DGAP-News: Leifheit AG: Above-average earnings growth in 2012 (english)

Leifheit AG: Above-average earnings growth in 2012DGAP-News: Leifheit AG / Key word(s): Final ResultsLeifheit AG: Above-average earnings growth in 201209.04.2013 / 10:01———————————————————————P R E S S I N F O R M A T I O N Leifheit: Above-average earnings growth in 2012 – Turnover growth in Brand Business – Adjusted EBIT increases by 13.4 percent – Planned dividend of EUR 1.50 per share – Cautiously optimistic outlook Nassau, 9 April 2013 – In financial year 2012, despite difficult frameworkconditions, the Leifheit Group, one of the leading European suppliers ofbranded household goods, had a slight increase in turnover of just underone percent to EUR 224.2 million (2011: EUR 222.1 million). The Groupbenefited from a one-time consolidation effect from taking over control ofits Czech distribution company. Adjusted for this effect, turnover remainedat the previous year’s level.Repeat in double-digit earnings growthConsolidated earnings before interest and taxes (EBIT) amounted to EUR 14.2million (2011: EUR 13.9 million). As in 2011, there were positiveextraordinary effects on earnings in the reporting year: in financial year2012, the net result includes a one-time effect of EUR 1.2 million fromterminating the license agreement for Dr Oetker Bakeware; in 2011, takingover control of the Czech distribution company had an effect of EUR 2.5million on earnings. Adjusted by this one-off effect, the EBIT in thereporting year was EUR 13.0 million (2011: EUR 11.4 million). Thisrepresents an increase of 13.4 percent. Thus the company achieved itsforecast of above-average earnings growth of at least 10 percent for 2012.The main reason for this positive development was the increased grossmargin of 44.2 percent (2011: 43.0 percent), which is mainly attributableto innovation, product range revisions and the decision to discontinuelow-margin business.The tax rate rose from 1.4 percent to 23.1 percent due to lower additionaldeferred tax assets on losses carried forward. The net result for thefinancial year 2012 thus decreased to EUR 9.4 million (2011: EUR 12.1million).The Leifheit Group continues to enjoy a solid equity base: by 31 December2012, the equity ratio rose to 50.6 percent (2011: 49.7 percent).Increased dividend plannedDue to the positive development of earnings, the Board of management andthe Supervisory Board of Leifheit AG have decided to propose to theshareholders at the Annual General Meeting on 6 June 2013 an increaseddividend of EUR 1.50 (previous year: EUR 1.30) per share for financial year2012. This corresponds to a current dividend yield of approximately 4.4percent.Brand Business remains the main revenue driverWith a share of 79.3 percent (2011: 76.8 percent), Brand Business, whichcomprises the Leifheit and Soehnle brands, contributes to the vast majorityof Group turnover. In financial year 2012, the company generated EUR 177.7million in this segment, which is 4.2 percent more than in the previousyear. Adjusted for the one-time consolidation effect mentioned above,growth was 2.5 percent.Due to dependency on a few customers, turnover in Volume Business ischaracterised by high volatility. At EUR 46.5 million in 2012 (2011: 51.6million), this figure was at the level of 2010. This was primarily becauseof the stagnant Project Business in the US, cyclical lack of turnover atthe French subsidiaries Birambeau and Herby, and also the decision todiscontinue low-margin turnover.Germany also remained one of the largest sales markets for the LeifheitGroup in 2012. Turnover for financial year 2012 was EUR 96.1 million (2011:EUR 96.6 million). The Central Europe region achieved revenues of EUR 97.1million (2011: EUR 96.3 million), an increase of one percent. However, aturnover increase of 27.6 percent to EUR 18.8 million (2011: EUR 14.7million) was achieved in Eastern Europe. Leifheit also achieveddouble-digit growth – at a lower level – in the Asian markets. Overall,turnover outside Europe were EUR 12.1 million (2011: EUR 14.5 million).POS Excellence Initiative and e-commerce are the focal points of 2013As part of their multi-year strategy, ‘Leifheit GO!’, Leifheit has alsobecome ideally equipped to hold leading competitive positions in thefuture, through an umbrella brand strategy which was developed for theLeifheit brand, and through clever product innovations, distributionconcepts and process optimisations. Here, the company aims to both grow inthe saturated markets of Central Europe, and to strengthen distribution ingrowth regions.In the developed markets, local retail will still be an important point ofcontact for the consumer in future. Furthermore online trading is alsoshowing a clear positive development. Therefore the aim for all relevantdistribution channels is to provide adequate support: Leifheit isdeveloping intelligent solutions for local retail under the term of POS(point of sale) Excellence, which enables the company to respond thegrowing brand and quality orientation of consumers. For this purpose, thehigh-quality products from Leifheit and Soehnle will be displayed on theshelves with eye-catching POS tools, informative packaging and intelligentsearch logic.At the same time, Leifheit will continue to drive forward the expansion ofe-commerce. For the best possible support of this distribution channel,organisational measures and process optimisations were taken as part of abroader e-commerce project. Initial successes were already evident infinancial year 2012: growing sales in the e-commerce distribution channelcontributed to the positive turnover trend with an increase of 25 percentto EUR 13.8 million.Moreover, Leifheit has defined clear-cut international focus markets. Thecompany will continue to expand its distribution in new growth regions,such as Eastern Europe, Turkey and selected Asian countries, in order tocompensate for cyclical declines in Southern Europe.Economic conditions influence future growthThe Euro and debt crisis will also impact the business development of theLeifheit Group in the current financial year. Nevertheless, looking to thefuture, the company remains optimistic about continuing along this growthpath with its ‘Leifheit GO!’ strategy.Georg Thaller, Chairman of the Board of Management at Leifheit AG: ‘Afterthe satisfactory year 2012 we expect a positive development for theLeifheit Group in the current financial year as well. We expect high growthrates in Eastern Europe and Asia. Causing more difficulty however is thepersistently low demand in the Southern European countries of Spain, Italy,and Greece as well as in the Netherlands. In addition, the unusually longwinter in Germany is entailing considerable moderation in the demand forrotary dryers that are used outdoors.Despite these difficult framework conditions, we expect a growth ofturnover at the Group level in the financial year 2013 between two to fourpercent and an EBIT at the level of the previous year – respectivelyadjusted for the terminated business with the Dr Oetker Bakeware brand. Atthe same time, the Brand Business makes the biggest contribution to growthwith rates of increase between three and five percent. The Volume Businessis remaining stable at the level of the previous year.’You can find further information in the annual financial report for 2012and underhttp://www.leifheit.de/en/investor-relations/publications/financial-reports.html.About LeifheitFounded in 1959, Leifheit AG is a leading European supplier of brandedhousehold products. The company stands for high-quality innovative productswith a high utility value and pioneering design in the areas of cleaning,laundry care, kitchen and well-being. Leifheit and Soehnle are among thebest known brands in Germany. Besides the Brand Business, Leifheit AG isactive in service-oriented Volume Business through its French subsidiariesBirambeau and Herby. With its international subsidiaries, the LeifheitGroup has around 1,000 employees.Contact:Leifheit AGD-56377 +49 2604 977218End of Corporate News———————————————————————09.04.2013 Dissemination of a Corporate News, transmitted by DGAP – acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.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: English Company: Leifheit AG Leifheitstraße 56377 Nassau Germany Phone: 02604 977-0 Fax: 02604 977-340 E-mail: Internet: www.leifheit.com ISIN: DE0006464506 WKN: 646450 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service ——————————————————————— 206412 09.04.2013Weitere Informationen: www.dpa-AFX.de