DGAP-News: Leifheit AG: Leifheit result holds despite slight decline in turnover (english)
Leifheit AG: Leifheit result holds despite slight decline in turnover
DGAP-News: Leifheit AG / Key word(s): Quarter Results
Leifheit AG: Leifheit result holds despite slight decline in turnover
14.05.2013 / 08:57
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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 confirmed
Nassau, 14 May 2013 - The Leifheit Group, one of the leading European brand
suppliers of household items, achieved a stable result in the first quarter
of 2013 despite a decline in turnover of 4.2%. Despite the difficult
economic environment in some southern European markets - especially Greece,
Italy and Spain - as well as the long winter affecting turnover and
earnings development in the first quarter of 2013, the management is
sticking with its forecast for the year as a whole.
Georg Thaller, Chairman of the Board of Management of Leifheit AG: 'If the
framework conditions for our business and the influences on our main sales
markets do not change significantly, we expect a turnover growth at Group
level of 2 to 4% for 2013 and an EBIT at the previous year's level. In the
medium term we will continue to pursue our target for a sustainable and
profitable turnover growth of between 3 and 5% with a strong earnings
upturn. With cash amounting to EUR 38.1 million and an equity ratio of
45.5%, we are currently well-placed to secure these long-term growth and
earnings targets'.
First quarter affected by adverse weather conditions
The unusually long winter in many European countries resulted in a
significantly lower frequency in visits to shops. This culminated
particularly in the reluctance of consumers to purchase rotary dryers for
outdoor use as well as spring cleaning equipment. These effects are
reflected in the first quarter's figures: Group turnover reached EUR 55.6
million - a decrease of 4.2%. However, primarily due to positive currency
effects, Group earnings before interest and taxes (EBIT) in the first three
months of 2013 remained at the previous year's good level of EUR 2.8
million. In accordance with the business strategy and with a view to strict
cost discipline Leifheit has improved EBIT in the Brand Business segment
from EUR 2.3 million to EUR 2.5 million. In the Volume Business the company
recorded 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 of
the previous year, from 4.7% to 4.9%. Earnings before taxes (EBT) developed
positively at Group level: with an increase of 3.0% it reached EUR 2.4
million 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 the
previous year's level.
Expectation of positive effects on turnover for 2013 as a whole
Leifheit is forecasting significant catch-up effects for the second
quarter, which has already been observed in April and thus can largely
compensate for the lack of turnover in the first quarter. A range of new
products that Leifheit is due to launch in the middle of the year also
promises significant turnover momentum.
For the year as a whole Leifheit expects positive effects from the further
implementation of the 'Leifheit GO!' strategy. During the year, two
initiatives will be promoted: under the POS excellence concept we will
further optimise our brand presence in retail. Here Leifheit offers to
retailers intelligent solutions, by which the increasing brand and quality
orientation of consumers are taken into account. To this end, the
high-quality products of the Leifheit and Soehnle brands are presented with
eye-catching POS tools, expressive packaging and intelligent search logic
on the shelf.
Furthermore Leifheit is expanding its activities in e-commerce. To best
support this distribution channel, Leifheit has already implemented
organisational measures and process optimisation in the context of a
broad-based e-commerce project.
The aim of the Leifheit POS excellence initiative and of the e-commerce
activities is to generate further growth in core European markets. In
addition, Leifheit is focusing on the further expansion of distribution on
its new growth markets. The focus is on Eastern Europe, selected regions in
Asia and in Turkey.
For more information see the quarterly financial report as at 31 March 2013
and
www.leifheit.de/en/investor-relations/publications/financial-reports.html.
*On 31 December 2012 Leifheit ended the license for the use of the naming
rights to the brand Dr Oetker Bakeware. Turnover of Dr Oetker Bakeware
amounted to EUR 1.4 million in the first quarter of 2012. In the first
three months of the current financial year as part of the final completion
sales totalling EUR 0.8 million were made. For better comparability,
turnover has been adjusted for the business with Dr Oetker Bakeware for the
current year as well as the previous year's figures.
About Leifheit
Founded in 1959, Leifheit AG 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 sectors of
cleaning, laundry care, kitchen goods and wellbeing. 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. Taking into account its
international branches, the Leifheit Group has around 1,000 employees in
total.
Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218
End of Corporate News
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Language: English
Company: Leifheit AG
Leifheitstraße
56377 Nassau
Germany
Phone: 02604 977-0
Fax: 02604 977-340
E-mail: ir@leifheit.com
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
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210886 14.05.2013
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