DGAP-News

Leifheit Aktiengesellschaft: Leifheit sees positive development in second quarter - Seite 2

Group EBIT impacted by non-recurring expenses

The Group generated earnings before interest and taxes (EBIT) of EUR 6.8 million in the first half of 2017, compared to EUR 10.1 million in the same period of the previous year. The EUR 3.3 million decline resulted primarily from non-recurring expenses for the restructuring of sales activities in Brand Business in the amount of EUR 2.3 million and higher advertising costs of EUR 1.3 million for strengthening the Group's brands. The foreign currency result decreased by EUR 0.1 million to EUR -1.1 million in the first half of 2017 (previous year: EUR -1.0 million). Gross profit stood at EUR 57.0 million in the first half of 2017, compared to EUR 57.6 million in the previous year. The decline was mainly the result of higher purchasing prices for raw materials and goods purchased in foreign currencies. The gross margin therefore fell by 0.5 percentage points to 47.1% (previous year: 47.6%).

Less taxes, this equalled a net result for the period of EUR 4.4 million, compared to EUR 6.6 million in the first half of 2016.

Brand Business on par with previous year

Turnover in Brand Business, which includes the Leifheit and Soehnle brands, showed stable development compared to the first half of 2016 and amounted to EUR 103.2 million. As a result, the contribution of Brand Business to Group turnover was somewhat higher year on year at 85.3%.

The Group generated healthy growth in the cleaning and laundry care product categories in the reporting period. The products for floor and surface cleaning, such as the new Leifheit Care & Protect System, and for ironing and laundry drying, made a particularly substantial contribution to this development. By contrast, the kitchen product category and Soehnle-branded products recorded a drop in turnover. Turnover in the e-commerce sales channel rose once again year on year by 5.8%.

Turnover in Brand Business in Germany increased, and the Group generated further turnover growth in the Eastern European target markets as well. With the exception of Belgium, turnover in the Central European target region was down by contrast in the first half of the year, while turnover in Spain remained largely stable. Aside from South America and Australia, Brand Business in target markets outside of Europe also recorded a decline in turnover.