DGAP-News: Leifheit AG: Leifheit result holds despite slight decline in turnover (english)

Leifheit AG: Leifheit result holds despite slight decline in turnoverDGAP-News: Leifheit AG / Key word(s): Quarter ResultsLeifheit AG: Leifheit result holds despite slight decline in turnover14.05.2013 / 08:57———————————————————————Leifheit result holds despite slight decline in turnover – EBIT for the first quarter of 2013 at previous year’s level of EUR 2.8 million – Weather causes decline in turnover of 4.2% to EUR 55.6 million* – Significant catch-up effects in April – Overall forecast for 2013 confirmedNassau, 14 May 2013 – The Leifheit Group, one of the leading European brandsuppliers of household items, achieved a stable result in the first quarterof 2013 despite a decline in turnover of 4.2%. Despite the difficulteconomic environment in some southern European markets – especially Greece,Italy and Spain – as well as the long winter affecting turnover andearnings development in the first quarter of 2013, the management issticking with its forecast for the year as a whole.Georg Thaller, Chairman of the Board of Management of Leifheit AG: ‘If theframework conditions for our business and the influences on our main salesmarkets do not change significantly, we expect a turnover growth at Grouplevel of 2 to 4% for 2013 and an EBIT at the previous year’s level. In themedium term we will continue to pursue our target for a sustainable andprofitable turnover growth of between 3 and 5% with a strong earningsupturn. With cash amounting to EUR 38.1 million and an equity ratio of45.5%, we are currently well-placed to secure these long-term growth andearnings targets’.First quarter affected by adverse weather conditionsThe unusually long winter in many European countries resulted in asignificantly lower frequency in visits to shops. This culminatedparticularly in the reluctance of consumers to purchase rotary dryers foroutdoor use as well as spring cleaning equipment. These effects arereflected in the first quarter’s figures: Group turnover reached EUR 55.6million – a decrease of 4.2%. However, primarily due to positive currencyeffects, Group earnings before interest and taxes (EBIT) in the first threemonths of 2013 remained at the previous year’s good level of EUR 2.8million. In accordance with the business strategy and with a view to strictcost discipline Leifheit has improved EBIT in the Brand Business segmentfrom EUR 2.3 million to EUR 2.5 million. In the Volume Business the companyrecorded a slight fall in EBIT from EUR 0.5 million to EUR 0.3 million.The EBIT margin increased by 0.2 percentage points on the same period ofthe previous year, from 4.7% to 4.9%. Earnings before taxes (EBT) developedpositively at Group level: with an increase of 3.0% it reached EUR 2.4million in the first quarter. The tax rate rose only slightly, from 23.1%to 24.0%. At EUR 1.8 million, the net result for the period was at theprevious year’s level.Expectation of positive effects on turnover for 2013 as a wholeLeifheit is forecasting significant catch-up effects for the secondquarter, which has already been observed in April and thus can largelycompensate for the lack of turnover in the first quarter. A range of newproducts that Leifheit is due to launch in the middle of the year alsopromises significant turnover momentum.For the year as a whole Leifheit expects positive effects from the furtherimplementation of the ‘Leifheit GO!’ strategy. During the year, twoinitiatives will be promoted: under the POS excellence concept we willfurther optimise our brand presence in retail. Here Leifheit offers toretailers intelligent solutions, by which the increasing brand and qualityorientation of consumers are taken into account. To this end, thehigh-quality products of the Leifheit and Soehnle brands are presented witheye-catching POS tools, expressive packaging and intelligent search logicon the shelf.Furthermore Leifheit is expanding its activities in e-commerce. To bestsupport this distribution channel, Leifheit has already implementedorganisational measures and process optimisation in the context of abroad-based e-commerce project.The aim of the Leifheit POS excellence initiative and of the e-commerceactivities is to generate further growth in core European markets. Inaddition, Leifheit is focusing on the further expansion of distribution onits new growth markets. The focus is on Eastern Europe, selected regions inAsia and in Turkey.For more information see the quarterly financial report as at 31 March 2013andwww.leifheit.de/en/investor-relations/publications/financial-reports.html.*On 31 December 2012 Leifheit ended the license for the use of the namingrights to the brand Dr Oetker Bakeware. Turnover of Dr Oetker Bakewareamounted to EUR 1.4 million in the first quarter of 2012. In the firstthree months of the current financial year as part of the final completionsales totalling EUR 0.8 million were made. For better comparability,turnover has been adjusted for the business with Dr Oetker Bakeware for thecurrent year as well as the previous year’s figures.About LeifheitFounded in 1959, Leifheit AG is one of the leading European brand suppliersof household items. The company stands for high-quality, innovativeproducts with great utility and pioneering design in the sectors ofcleaning, laundry care, kitchen goods and wellbeing. Leifheit and Soehnleare among the best known brands in Germany. Other than in the BrandBusiness, Leifheit AG operates in the service-oriented Volume Business viaits French subsidiaries Birambeau and Herby. Taking into account itsinternational branches, the Leifheit Group has around 1,000 employees intotal.Contact:Leifheit AGD-56377 +49 2604 977218End of Corporate News———————————————————————14.05.2013 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 ——————————————————————— 210886 14.05.2013Weitere Informationen: www.dpa-AFX.de