DGAP-News

Leifheit Aktiengesellschaft: Significant growth in earnings - EBIT forecast increased

DGAP-News: Leifheit Aktiengesellschaft / Key word(s): 9-month
figures/Quarter Results
Leifheit Aktiengesellschaft: Significant growth in earnings - EBIT
forecast increased

10.11.2014 / 08:23

---------------------------------------------------------------------

Leifheit AG: Significant growth in earnings - EBIT forecast increased

- Stable group turnover of EUR 161.7 million
- Forecast shows 2.5% growth in the Brand Business
- Gross margin increases to 47.1%
- EBIT also improves to EUR 16.2 million due to currency effects
- Earnings forecast increased for the entire year, turnover target
unchanged

Nassau, 10 November 2014 - Against the backdrop of the worldwide economic
downturn, Leifheit's turnover development remained constant in the first
three quarters of 2014 in comparison to the same period from the previous
year and reached EUR 161.7 million. In accordance with the premise of
"Brands and Margins" the Group's gross margin increased in the reporting
period by 3.2 percentage points to 47.1% compared to the corresponding
period of the previous year.

"We have consistently pressed forward with our announced operative measures
for improving profitability and strengthening the Brand Business,"
explained Thomas Radke, chairman of the board of management at Leifheit AG.

The significant increase in earnings (EBIT) to EUR 16.2 million in
comparison to the previous year's yearnings of EUR 6.6 million was
particularly supported by the development of the
US dollar. The profit included positive effects from the foreign currency
gains amount to
EUR 4.4 million (previous year: EUR -1.0 million). With a value of 10.0%,
the EBIT margin is significantly above the level from the previous year
(4.0%). The Group's net result for the period after tax amounted to EUR
10.6 million for the first nine months of the current financial year. The
company was thereby able to significantly exceed the previous year's value
of EUR 4.1 million as well.

Positive development in the Brand Business

The turnover of the Brand Business in which the products of the brands
Leifheit and Soehnle are marketed grew by 2.5% in comparison to the
previous year to a total of EUR 133.7 million. The company achieved the
growth primarily through increased activities in the cleaning and laundry
care categories under the Leifheit brand. The segment earnings (EBIT) grew
from EUR 5.6 million in the previous year to EUR 9.4 million after
adjustment for foreign currency results.

Volume Business continues to focus on profitability

The strategic concentration on the Brand Business led to a drop in business