Leifheit Aktiengesellschaft / DE0006464506
21.02.2024 - 18:52:50Leifheit Aktiengesellschaft: Preliminary figures for financial year 2023, outlook for 2024
| Leifheit Aktiengesellschaft / Key word(s): Preliminary Results/Forecast 21.02.2024 / 18:52 CET/CEST The issuer is solely responsible for the content of this announcement. Group turnover up by 2.7% to EUR 258.3 million Group EBIT increases significantly to EUR 6.0 million, despite one-off expenses of EUR 2.7 million in connection with changes in the Management Board Free cash flow reached EUR 12.1 million Forecast for 2024: Slight growth of Group turnover, Group EBIT expected in the corridor of EUR 10 million and EUR 12 million Revision of the corporate strategy with a focus on sustainable profitable growth Nassau/Germany, 21 February 2024 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household goods in Europe, has achieved the turnover and earnings forecast for financial year 2023 that was recently adjusted upwards, according to preliminary, unaudited financial figures. Despite challenging market conditions, the Leifheit Group generated turnover of EUR 258.3 million in 2023 (2022: EUR 251.5 million) according to preliminary calculations. This corresponds to an increase in turnover of 2.7% compared to the previous year. Targeted marketing campaigns in selected markets, product innovations and the successful expansion of distribution have had a positive effect. Turnover growth was driven by all core regions. According to the provisional figures in the 2023 consolidated financial statements, earnings before interest and taxes (EBIT) increased significantly to EUR 6.0 million (2022: EUR 2.8 million) and is therefore in the recently forecasted mid-single-digit million-euro range. The uptick in earnings was achieved despite one-off expenses of EUR 2.7 million in connection with the changes to the Management Board. The increase is primarily the result of successful marketing campaigns for profitable products and the increase in the gross margin due to sales price adjustments and positive product mix effects. The slight decline in procurement and energy costs also had an effect, despite these items remaining high. The Leifheit Group continued to place particular emphasis on consistent lean management in production and logistics in 2023, leading to increases in productivity and positive cost effects. In 2023 free cash flow increased by EUR 3.3 million to EUR 12.1 million (2022: EUR 8.8 million) and was thus slightly above the recently forecasted upper single-digit million-euro range. The improvement in working capital made a significant contribution to this. In addition, investment measures were postponed from the fourth quarter of 2023 to the first quarter of 2024. “2023 was characterised by weak economic growth and subdued consumer sentiment, which led to declining markets in core sales regions,” explains Alexander Reindler, Chairman of the Board of Management of Leifheit AG. “In 2023, we successfully continued selected marketing campaigns such as ‘Electricity Savers’, ‘Our Most Durable Products’ and ‘Made in Germany’ as part of our strategic initiatives. We also focused on our energy-saving and durable core products, which were in particularly high demand among consumers. At the same time, innovations such as the Pegasus Black Line – our drying racks in an attractive black and anthracite colour combination – made a contribution to the positive turnover trend in the reporting period.” In the German domestic market, the Leifheit Group’s turnover rose by 4.9% from EUR 98.8 million in the previous year to EUR 103.7 million in 2023. In Central Europe, the Leifheit Group increased turnover by 2.9% to EUR 114.4 million in 2023 (2022: EUR 111.2 million). Turnover in the Eastern Europe sales region also rose in the reporting period, by 2.1% to EUR 34.9 million (2022: EUR 34.2 million). In the non-European markets, turnover decreased by 27.4% to EUR 5.3 million (2022: EUR 7.3 million). In the Household segment with the Leifheit brand, turnover grew by 3.8% from EUR 204.2 million in the previous year to EUR 211.9 million in 2023. Turnover in the significantly smaller Wellbeing segment with the Soehnle brand rose by 1.5% from EUR 16.1 million to EUR 16.4 million. By contrast, turnover in the Private Label segment with the French subsidiaries Birambeau and Herby fell short of the previous year’s figure of EUR 31.2 million by 3.9%, standing at EUR 30.0 million in the reporting period. Forecast for 2024 The Leifheit Group continues to face challenging conditions in the financial year 2024. Nevertheless, the Board of Management of Leifheit AG anticipates a slight growth in Group turnover versus previous year. In the first quarter of 2024 turnover is expected to decrease slightly compared to the same period of 2023. In the wake of the attacks by the Houthi rebels in the Red Sea, Leifheit has been facing a massive increase in sea freight costs since the beginning of 2024, which will have a negative impact on earnings, particularly in the first quarter, but also in 2024 as a whole. At the same time, the forecast top-line growth and cost-cutting and efficiency measures will have a positive effect on earnings. Against this backdrop, the Board of Management predicts Group EBIT in the corridor of EUR 10 million to EUR 12 million. “Even though the general conditions will remain challenging in 2024, we are optimistic about the current financial year, when we will be celebrating the company’s 65th anniversary,” says Alexander Reindler with a view to the current financial year. “We are therefore highly committed to moving the Leifheit Group forward and strengthening the company’s market position. In particular, we will revise our corporate strategy with a focus on growth and cost efficiency in order to position the Group for sustainable success. Our future growth will focus primarily on strengthening our brand presence, innovations in our core segments, increased internationalization and e-commerce. Preventive procurement management will also be an important topic. We will take targeted measures to counteract persistently high procurement costs and the significant increase in freight costs since the beginning of the year.” Leifheit will publish the final, audited figures for financial year 2023 with the full annual report on 27 March 2024, that will be available at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/. About Leifheit 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. Contact: Leifheit AG D-56377 Nassau ir@leifheit.com +49 2604 977218 21.02.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com |
| Language: | English |
| Company: | Leifheit Aktiengesellschaft |
| Leifheitstraße 1 | |
| 56377 Nassau | |
| Germany | |
| Phone: | 02604 977-0 |
| Fax: | 02604 977-340 |
| E-mail: | ir@leifheit.com |
| Internet: | www.leifheit-group.com |
| ISIN: | DE0006464506 |
| WKN: | 646450 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1842429 |
| End of News | EQS News Service |
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