Corporate News

11/11/2010
Leifheit AG: Leifheit AG succeeds in boosting earnings sharply


Leifheit AG / Key word(s): Quarter Results
11.11.2010 08:38

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.


- EBIT increased to EUR 6.4 million (previous year: EUR 1.2 million) - Consolidated turnover of EUR 154 million slightly up on previous year (EUR 153 million)
- Outlook: 2010 annual results (excluding Bathroom Furnishings) above previous year's level

Note on the comparability of key ratios

Leifheit sold its Bathroom Furnishings division in the second quarter of 2010. IFRS require that business in this division be shown separately as 'discontinued operations' 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-allocable area (Group functions). This means that the current key ratios are only partly comparable with previous year's figures which still included the Bathroom Furnishings division. For greater comparability a table in the detailed press release (www.leifheit.de/en/press/corporate-news.html) and in the financial report for the period ending 30 September 2010 (available at www.leifheit.de/en/investor-relations/publications/financial-reports.html) shows a reconciliation with the figures published in the previous year.
Group earnings: Sale of Bathroom Furnishing division already offset
Consolidated Group turnover in the first nine months rose slightly to EUR 154 million. In the previous year, the corresponding segments reported turnover of EUR 153 million. The foreign share was unchanged at 58 %. Consolidated EBIT was EUR 6.4 million, significantly up on the previous year's level (after adjusting for the sale of the Bathroom Furnishings division - Q1-Q3/2009 EUR 1.2 million) As a result, this year's EBIT will actually exceed the published 2009 EBIT, which was still benefiting from the Bathroom Furnishings division (Q1-Q3/2009 with Bathroom Furnishings, EUR 4.3 million). This favourable outcome is due particularly to the growth of its Brand Business segment (Leifheit, Dr. Oetker Bakeware, Soehnle), where Leifheit has achieved significant growth in margins and cost savings. EBT to 30 September 2010 totalled EUR 4.9 million (Q1-Q3/2009, adjusted: EUR -0.4 million).

The Net result for the period - unlike the other components in the income statement - also includes operating results for the sold Bathroom Furnishings division up to the point of deconsolidation and the proceeds from the sale of the division. It totalled EUR 13.7 million (Q1-Q3/2009: EUR 0.5 million).

Cash flow from operating activities was EUR 4.5 million (Q1-Q3/2009: EUR 40.4 million). Cash flow from investment activities of EUR 23.3 million also includes the proceeds from the sale of the Bathroom Furnishings division.

Business developments in detail

After the sale of the Bathroom Furnishings division in the second quarter of 2010, the company is now organised in the segments 'Brand Business' (Leifheit, Dr. Oetker Bakeware and Soehnle) and 'Volume Business' (Birambeau and Herby).

Brand Business: domestic strength

The Leifheit, Dr. Oetker Bakeware and Soehnle brands are the basis of the Group's success. With turnover of EUR 130 million, the brands matched the previous year (Q1-Q3/2009: EUR 130 million), even though the previous year's turnover still included EUR 6 million from the ladders business (now sold). Almost half of this turnover in the first nine months of the current year was generated outside Germany. Sales in Austria and the Middle East were particularly successful, while in large parts of Europe (e.g. the Netherlands, Italy, Eastern Europe) the general cautious mood among consumers led to declines. Cleaning products were particularly successful, benefiting from the success of the TV campaign for the Twist System. The contribution of Brand Business (which for the first time also included 'Group functions') to consolidated EBIT for the period ending 30 September 2010 rose significantly to EUR 3.6 million (Q1-Q3/2009: EUR -1.7 million).
Volume Business continues to grow

Turnover of the Volume Business segment, with articles distributed entirely outside Germany by Birambeau (kitchen) and Herby (laundry care) grew almost 6 % year over year to EUR 24 million (Q1-Q3/2009: EUR 23 million). Volume Business is benefiting from the tight focus on price, specifically in the French market. The segment's share in consolidated turnover accordingly rose slightly to 16 %. Birambeau boosted its turnover in kitchen appliances by 2 % in the first nine months of 2010, among other reasons because of a campaign business. In the laundry business area, Herby further expanded its campaign and listing business in France, generating growth of 15 %. The contribution of Volume Business to consolidated EBIT for the period ending 30 September 2010 fell minimally to EUR 2.8 million (Q1-Q3/2009: EUR 2.9 million).

Outlook: annual results expected to exceed previous year
By end-2010 the company expects turnover to slightly exceed 2009 levels for the comparable segments. For the year-end, we are including two nonrecurring effects - the rise in results in the fourth quarter will be relatively moderate compared with the rest of the year, as the first half included the proceeds from the sale of the Bathroom Furnishings division, and consolidated results will also be affected by currency hedging transactions. Excluding the possible currency effects, the Board of Management is confident that the annual result for 2010 will actually exceed the previous year's level of EUR 3.1 million, which also included the results of the Bathroom Furnishings division.

Additional information is available in the financial report for period ending 30 September 2010.

Contact:
Leifheit AG
D-56377 Nassau
ir@leifheit.com
+49 2604 977218




11.11.2010 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language:     English
Company:      Leifheit AG
              Leifheitstraße
              56377 Nassau
              Deutschland
Phone:        02604 977-0
Fax:          02604 977-340
E-mail:       ir@leifheit.com
Internet:     www.leifheit.com
ISIN:         DE0006464506
WKN:          646450
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Hamburg, München, Berlin, Düsseldorf, Hannover, Stuttgart  
End of Announcement DGAP News-Service  





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