Ad-hoc-notice according to § 15 WpHG - Leifheit: results significantly up on previous year
• Continued focus due to sale of Bathroom Furnishings division
• EBIT from continuing operations up at € 7.7 million
• Consolidated turnover rises to € 105 million (excluding Bathroom Furnishings)
• Outlook: 2010 annual results tend towards previous year’s level despite sale of Bathroom Furnishings division
Note on the comparability of key ratios
Due to the sale of the Bathroom Furnishings division in the second quarter of 2010, this is classified as “discontinued operations”. In accordance with IFRS 5, the results for this division are now shown separately in the income statement. As a result, the income statement shows details only for the continuing operations, comprising the former Household Products division and the non-allocatable items (group functions). The figures for the previous year were adjusted accordingly. The statement of financial position for the period ending 30 June 2010 no longer includes the deconsolidated Bathroom Furnishings division. The Bathroom Furnishings division is, however, still included in the statement of financial position for the period ending 31 December 2009.
Nassau, 12 August 2010 – Leifheit AG presents its report today on the first half of 2010. The company has again increased turnover and all the important earnings components.
After the sale of the Bathroom Furnishings division in the first half of 2010, the company is now organised in the segments “Brand business” (Leifheit, Dr. Oetker Bakeware and Soehnle) and “Volume business” (Birambeau and Herby).
Results significantly outperform expectations
Consolidated turnover (excluding Bathroom Furnishings) grew by around 1 % to € 105 million, slightly above the comparable figure for the previous year (1st half of 2009 excl. Bathroom Furnishings: € 104 million, inc. Bathroom Furnishings: € 137 million). The foreign share was unchanged at 56 %.
EBIT from continuing operations was € 7.7 million. It includes unrealised foreign exchange gains from the revaluation of foreign exchange futures transactions amounting to € 2.1 million. Therefore adjusted EBIT was € 5.6 million, well above not only the comparable figure for the previous year (1st half 2009 excl. Bathroom Furnishings: € 0.9 million) but even the previous year’s figure including Bathroom Furnishings (€ 2.8 million).This positive trend is due particularly to the growth in Brand business, with a qualitative improvement in gross margin.
EBT from continuing operations rose in the period ending 30 June 2010 to € 6.6 million (1st half 2009 excl. Bathroom Furnishings: € -0.1 million, 1st half 2009 inc. Bathroom Furnishings: € 1.6 million).
The result for the period, primarily from the proceeds of the disposal and the result of the former Bathroom Furnishings division, increased significantly to € 15.6 million (1st half 2009: € 0.4 million).
Cash flow from operating activities was € 0.2 million (1st half 2009: € 28.5 million), and now includes changes in receivables and payables for the former Bathroom Furnishings division.
Brand business the mainstay of the group
Our strong brands Leifheit, Dr. Oetker Bakeware and Soehnle were again the mainstay of group success. With turnover of € 90 million, the brands matched the previous year (1st half 2009: € 90 million), which still included turnover of c. € 6 million from the former ladders business. Almost half (49 %) of turnover for the first half came from outside Germany. The growth rates in Austria and the USA offset the continuing declines in Eastern Europe. Cleaning products were particularly successful, benefiting from the success of the TV campaign for the twist system.
The contribution of Brand business to consolidated EBIT for the period ending 30 June 2010 rose significantly to € 7.3 million (1st half 2009: € 1.1 million).
Solid Volume business
Volume business, with articles previously distributed entirely outside Germany by Birambeau (kitchen) and Herby (laundry) grew almost 4 % year over year to €15 million (1st half 2009: €14 million). The segment’s share in consolidated turnover was stable at 14 %. In the first half of 2010, Birambeau managed to offset a missing special offer campaign in France from the previous year through turnover from its kitchen appliances. However, the loss of private label business in Spain partly diminished this positive effect. In the laundry business area, Herby further expanded its special offer and stockist business in France, generating growth of 10 %.
The contribution to consolidated EBIT for the period ending 30 June 2010 rose significantly to € 1.8 million (1st half 2009: € 1.4 million).
Moderate growth in second half
By end-2010 the company expects turnover to slightly exceed 2009 levels for the comparable segments.
Growth in earnings in the second half will be relatively moderate compared to the first half, as that included foreign exchange effects and nonrecurring effects from the sale of the Bathroom Furnishings division. However, the Board of Management is confident that earnings will tend towards previous year’s level even without the Bathroom Furnishings division. On a comparable basis (continuing operations excluding Bathroom Furnishings) the company will increase earnings in 2010, confirming the growth path in the core areas.
Leifheit benefiting from its core competence
Georg Thaller, Chairman of the Board of Management of Leifheit AG: “With the sale of the Bathroom Furnishings division, the Leifheit Group has returned to its focus on household products. Our brands – Leifheit, Dr. Oetker Bakeware, Soehnle, Birambeau and Herby – constitute our core business, and have actually increased earnings during the crisis, offering attractive returns in the long term. We see this as clear confirmation that our strategy of focus is the right one. We will continue to use strategic marketing measures and expansion into foreign growth markets in order to further consolidate our success.”
Additional information is available in the financial report for the first half year to 30 June 2010.