DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Half Year Results/Half Year Report 11.08.2021 / 08:12 The issuer is solely responsible for the content of this announcement.
Leifheit AG sees substantial rise in turnover and earnings in the first half of 2021
Nassau, 11 August 2021 - Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, continued its growth and recorded significant increases in turnover and earnings in the first half of 2021. As a result, the Leifheit Group was able to significantly improve earnings before interest and taxes (EBIT) year on year from EUR 8.8 million to EUR 13.6 million in the first six months of 2021, which equates to an increase in Group EBIT of 55% compared to the previous year. The EUR 11.2 million increase in gross profit to EUR 68.7 million played a major part in this performance and was largely the result of the sharp rise in turnover and positive product and customer mix effects. Less taxes, this equalled a net result for the period of EUR 9.5 million in the first half of 2021 (previous year: EUR 6.0 million). Free cash flow improved to EUR 10.4 million after EUR -2.5 million in the same period in the previous year.
In the first half of 2021, Group turnover increased by a substantial 19.9% to EUR 156.3 million (previous year: EUR 130.4 million), marking the fourth quarter of double-digit turnover growth in succession for the Leifheit Group. Leifheit's domestic market (Germany) led the others in a turnaround, evolving into a growth market with turnover growth of 30.5%. With a rise in turnover of 16.5%, the Central Europe region, where the significant markets of Italy and France posted very positive development, also made an important contribution to the success of the company. Successful TV campaigns in Italy and the announcement of similar measures in France saw demand soar and the distribution network expand further. The Leifheit Group also managed to generate turnover growth of 7.0% in the Eastern Europe region. Efforts to step up marketing activities, particularly in the Czech Republic, led to double-digit turnover growth.
Henner Rinsche, Chairman of the Board of Management of Leifheit AG, is satisfied with the company's performance in the first half of the year: "After a good start to financial year 2021, we were also able to continue on our growth trajectory in the second quarter of 2021. We continued to increase our investment in consumer advertising for our Leifheit and Soehnle brand products as part of our Scaling up Success growth strategy. Selected Soehnle products were also advertised for the first time on TV with great success, allowing Soehnle to develop into a successful brand with double-digit growth figures on a par with our core brand of Leifheit. Demand for Soehnle air purifiers was high among consumers against the backdrop of the COVID-19 pandemic, alongside the heavily advertised bathroom and kitchen scales."
In the Household segment, the Leifheit Group generated turnover of EUR 126.3 million in the first half of 2021 (previous year: EUR 105.8 million), which equates to a significant growth of 19.4%. The main factor in this extremely positive development was the expansion of TV campaigns, which caused a sharp increase in demand for cleaning (+29.8%) and laundry care (+11.7%) products in Germany in particular. The greater need for good hygiene among the general population in the wake of the COVID-19 pandemic, along with the intensified marketing activities, had a positive effect on sales figures.
Furthermore, the Group generated strong growth of 20.5% in the Wellbeing segment, pushing turnover up to EUR 13.8 million following EUR 11.4 million in the previous year. The increased marketing activities paid off here too, with a significant 21.0% increase in turnover from the heavily advertised bathroom and kitchen scales. Demand for Soehnle air purifiers, which remove allergens from the air and combat viruses and bacteria, remained high against the backdrop of the pandemic. Turnover in the air product group rose accordingly by around 150%. The Soehnle Airfresh Clean 400, which recently finished first in a test conducted by "Haus & Garten Test" magazine, has also been contributing to this trend since the first quarter. The air purifier filters out 99.951% of particles such as allergens, viruses and pollutants through its high-performance four-stage cleaning system, HEPA filter and UV-C light.
Turnover in the Private Label segment increased by 23.2% to EUR 16.2 million in the first half of 2021 (previous year: EUR 13.2 million). On the one hand, the lifting of the strong restrictions on French retail sector that prevailed in the comparable period during the COVID-19 lockdown in spring 2020 had a positive effect. In addition, private-label brand business was also able to achieve growth in the first half of 2021 resulting from pipeline filling effects caused by distribution expansion and the acquisition of new customers.
Looking ahead at the rest of the year, Henner Rinsche says: "We will continue to present our consumers with a selected range of products that have been awarded 'very good' test results on account of their excellent quality in the months to come through extensive TV activities. We even have a two-time test winner in our product range in the shape of the CLEAN TWIST system, which came top in the 'Haus & Garten Test' magazine test in both the flat mop and mop categories. Right now, we are particularly focused on the continued challenges in the supply chain, production and logistics as a result of the pandemic, which we plan to rise to as best as we can at the Leifheit Group. With the availability of freight capacity and containers low, and raw materials scarce in the market, we are taking a proactive approach to preventing bottlenecks in supply. At the same time, freight and raw material prices are spiralling out of control with no end in sight at the present time."
The impact of the pandemic on overall economic development and the business activities of the Leifheit Group remain difficult to evaluate. For financial year 2021, the Board of Management continues to anticipate Group turnover growth of at least 5% year on year and Group EBIT of between EUR 20 million and EUR 24 million.
Further information can be found in the financial report for the first half-year ending 30 June 2021, available at financial-reports.leifheit-group.com. 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.
1 Efficiency of particle filter material tested externally in accordance with EN 1822. HEPA H13 filter material used. Aerosol removal tested by the Institute of Fluid Mechanics and Aerodynamics at the Universität der Bundeswehr München; with aerosol particles (Ø 0.4 µm) in a room with a capacity of approximately 60 m³ at performance level 4.
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