DGAP-News: Leifheit Aktiengesellschaft: Leifheit AG enjoys success with clear strategy and high-quality range of products
DGAP-News: Leifheit Aktiengesellschaft
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Leifheit Aktiengesellschaft: Leifheit AG enjoys success with clear strategy and high-quality range of products (news with additional features)
21.07.2020 / 16:43
The issuer is solely responsible for the content of this announcement.
Leifheit AG enjoys success with clear strategy and high-quality range of products
- Group EBIT up significantly: quadrupled year on year in Q2 and up by approximately 76% in H1
- Group turnover 7.3% higher than previous year at EUR 130.4 million
- Positive overall outlook for 2020
- Range of products assisting consumers in the pandemic
- Plans to continue advertising offensive in the second half of the year
Nassau, 21 July 2020 - Leifheit AG, one of the leading brand suppliers of household items in Europe, is reporting on its current business situation based on preliminary figures for the first half of 2020. According to preliminary calculations, the Leifheit Group generated EBIT of EUR 8.8 million in the first six months of financial year 2020, increasing its earnings by a significant year-on-year margin of 75.5% (previous year: EUR 5.0 million). The positive earnings development over the first half of the year was primarily due to the systematic implementation of the Scaling Up Success growth strategy. According to preliminary figures, Leifheit increased Group turnover by 7.3% compared to the previous year's figure of EUR 130.4 million. The improvement in gross margin from 42.8% to 44.1% and a strict cost management policy also played a major role in earnings growth.
"The first half of the year showed that the Leifheit Group is extremely well positioned, even in the midst of the current pandemic, thanks to its business model and high-quality product range" said Henner Rinsche, Chairman of the Board of Management of Leifheit AG. "Increased awareness of hygiene has boosted consumer demand for our Profi floor wiper system, as well as other products such as the Pegasus drying rack. The lockdown in April did affect our business for a brief period due to the closure of important distribution channels, however we recorded a major rise in sales figures in May and June across all channels."
Leifheit products help maintain a clean and hygienic home
The coronavirus pandemic has sustainably changed the awareness of hygiene. Leifheit products can help consumers keep their homes clean and hygienic. Leifheit's product range includes the Profi XL floor wiper and the Regulus Aqua PowerVac, which wipes and vacuums the floor at the same time. Both of these products have been awarded test grades of "very good", with tests showing that they eliminate 99.99%* of viruses. The Airfresh Clean Connect 500 from Soehnle, which filters out airborne allergens, viruses and bacteria, is also the perfect accessory in a clean house. In a test conducted by Stiftung Warentest, it was awarded a rating of "good" and was found to be the second-best tested product.
Leifheit Group continues to focus on a high-quality product range in the course of its growth strategy. In Germany, Leifheit develops top-of-the-range products that make consumers' lives easier at home according to its "designed in Germany, made in Europe" principle. Owing to the Group's continuous and successful development activities, Leifheit and Soehnle products are regularly awarded top grades of "very good" in tests conducted by independent institutes. Examples include the Leifheit Columbus insulating jug, the new Flip mug range and the Leifheit CleanTenso steam cleaner, which were all awarded "very good" ratings and finished top in tests conducted by magazine Haus & Garten. "The Flip mug from our kitchen range is proving very popular among consumers," said Rinsche. "This product is meeting the demand from many consumers for a product that helps reduce the impact on the environment. Drinking tap water at home or on the go is simple with our best-in-test product."
Soehnle products also regularly finish top of product tests. Recently Haus & Garten awarded "very good" ratings to the Page Profi 300 digital kitchen scales, the Shape Sense Connect 200 bathroom scales and the Systo Monitor Connect 300 blood pressure monitor.
Advertising offensive to continue in the second half of the year
Leifheit is set to continue the advertising offensive that began at the start of the year in the second half of 2020. Further TV campaigns are in the pipeline to draw consumer attention to products such as the CLEAN TWIST Ergo mop set or the Pegasus drying rack, which was tested and awarded a grade of "very good".
In addition, Leifheit is set to embark on the largest Soehnle print campaign in its history in August using the claim "Auf's Gramm genau lecker" (delicious to the gram). The campaign will be focused on the Soehnle Page Profi 300 digital kitchen scales, recently awarded a "very good" test result, which features intelligent four-sensor technology for precision weighing and a weight-bearing capacity of up to 20kg. The Soehnle Page Profi range is the most-popular range of kitchen scales in Germany.
"We intend to continue to increase consumer demand for our products in our domestic market of Germany as well as in selected European markets," explained Henner Rinsche. "The new print campaign for Soehnle will be in partnership with publishing houses Gruner + Jahr, Burda and the Funke Mediengruppe and will see the Soehnle Page Profi 300 digital kitchen scales advertised in relevant glossy magazines. We also want to use our outstanding products and enhanced consumer communication to maintain our position as a reliable growth driver for our distribution partners. In the first half of the year, we successfully expanded our distribution network in the DACH region with the addition of over 1,200 supermarkets. I am confident that this marketing strategy will continue to bring Leifheit forward."
Positive outlook for 2020
In the course of preparing the half year financial statements, the Board of Management has updated its forecast for financial year 2020, with the Board of Management now assuming Group turnover growth of between 7% and 9% and Group EBIT growth of between EUR 12 million and EUR 15 million.
The forecast is based on the assumption that there will be no further significant restrictions due to the COVID-19 pandemic in the markets and sales channels relevant to Leifheit. In its previous guidance, which was made prior to the potential effects of the COVID-19 pandemic, the Board of Management forecast Group turnover growth of around 8% and EBIT growth of EUR 9.5 million to EUR 10 million for financial year 2020.
Leifheit AG will publish the full report for the first half of 2020 on 13 August 2020 at financial-reports.leifheit-group.com.
Images to this release are available for download at https://ir.leifheit-group.com/websites/leifheit_ir/German/3900/bilder.html
Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The Leifheit Group divides its operating business into the Household, Wellbeing and Private Label segments. Leifheit and Soehnle products - two of Germany's best-known household brands - are known for high quality and great utility for consumers. Its French subsidiaries Birambeau and Herby are active in the service-oriented Private Label segment with a selected product range. In each segment, the company focuses on its core product categories of cleaning, laundry care, kitchen goods and wellbeing. The Leifheit Group employs some 1,100 people. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de and www.soehnle.de.
* Profi XL: Tested on modified-Vaccinia-Ankara-Virus micro duo Wiper Cover and Leifheit Power Cleaner (25ml on 5l water, water temperature 60˚C)
* Regulus Aqua PowerVac : Tested on modified-Vaccinia-Ankara-Virus with Leifheit Universal Cleaner (5ml on 500ml, water temperature max 60˚C)
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File: Leifheit Corporate News 2020_07_21 Images
21.07.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de
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