Leifheit kicks off financial year 2024 with higher profitability

• Group turnover in line with expectations at EUR 65.9 million in the first quarter of 2024, decline of 6.2% due to expected, last-time base effects in the discounter channel
• Profitability continues to improve significantly: Gross margin rises to 44.7% (+4.2 percentage points), especially due to positive product mix effects and productivity and efficiency improvements
• Group EBIT increases to EUR 3.4 million (EUR +1.1 million)
• Positive free cash flow of EUR 1.0 million in the first quarter of 2024 (previous year: EUR -3.4 million)
• Forecast for 2024 confirmed: Slight growth in Group turnover, Group EBIT expected to be between EUR 10 million and EUR 12 million
• Launch of further products from the successful Black Line in the laundry care core category
• Introduction of an innovation in the cleaning category from July 2024
• Share buy-back program with a total volume of up to m€ 8.5 resolved
• Implementation of a new, holistic business strategy with a focus on core competences and sustainable, profitable long-term growth from June 2024

Nassau/Germany, 8 May 2024 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, made a solid start to financial year 2024 despite ongoing challenges in the market environment and continued to significantly improve its profitability. In the first three months of financial year 2024, the Leifheit Group generated turnover of EUR 65.9 million, after EUR 70.3 million in the first quarter of the previous year. The 6.2% decline in turnover was in line with the expectations and is primarily due to a base effect in the same period of the previous year, in which promotions at discounters made a significant contribution to turnover. The expansion of distribution in key European core markets and growth in the e-commerce channel partially compensated for this effect.

Consolidated earnings before interest and taxes (EBIT) rose to EUR 3.4 million in the first quarter of 2024 (Q1 2023: EUR 2.3 million). This is mainly due to the increased gross margin, which improved by 4.2 percentage points to 44.7% (Q1 2023: 40.5%). In addition to positive product mix effects due to the focus on products manufactured in Europe, increases in productivity and efficiency led to positive cost effects. These compensated for the significant rise in sea freight prices since the beginning of the year. Less taxes, this equalled a net result for the period of EUR 2.2 million in the first quarter of 2024 (Q1 2023: EUR 1.3 million). Free cash flow increased to EUR 1.0 million in the first quarter (Q1 2023: EUR -3.4 million).

Alexander Reindler, Chairman of the Board of Management of Leifheit AG, explains: “The Leifheit Group has made a solid start to financial year 2024, although turnover was expectedly down on the previous year due to a lack of promotions at discounters. Nonetheless, we are remaining clearly on the right track and will concentrate on increased advertising activities for high-margin core products in the cleaning and laundry care focus categories in the second quarter. Our activities are also aimed at expanding our e-commerce business, which has already developed very well in the first quarter.”

In the Household segment, the Leifheit Group’s turnover decreased by 5.2% to a total of EUR 55.4 million in the first quarter of 2024 (Q1 2023: EUR 58.5 million). Accordingly, the share of Group turnover accounted for by this segment amounted to 84.1% in the reporting period, compared to 83.2% in the same period of the previous year. Against the backdrop of a lack of promotions at discounters compared to the previous year, the laundry care and cleaning categories recorded a decline.

In addition, the Leifheit Group recorded turnover of EUR 3.9 million (Q1 2023: EUR 4.2 million) with the Wellbeing segment’s Soehnle brand. This corresponds to a decrease of 7.8% compared to the first quarter of the previous year against the backdrop of adjustments to the product range. In the Private Label segment, which comprises sales of private-label brands by the French subsidiaries Birambeau and Herby, turnover fell by 13.5% to EUR 6.6 million in the first quarter of 2024, significantly below the level of the same period of the previous year (Q1 2023: EUR 7.6 million). One of the main reasons for this was the lower number of sales partner promotions.

Considering the robust liquidity situation, the Board of Management decided a share buy-back program on 2. May 2024, with a total volume of up to EUR 8.5 million (excluding transaction costs). It is intended to enable shareholders to participate in the company's good liquidity situation over and above the dividend. The company will report on its website www.leifheit-group.com/investor-relations/ on the details and the progress of the share buy-back program.

Looking ahead to the current financial year, Alexander Reindler adds: “From June 2024, we will implement a new, holistic business strategy with a focus on core competences, profitable growth and cost efficiency in order to position the Leifheit Group to achieve long-term success. To this end, we will focus on a number of areas, including targeted investments in the Leifheit brand, significantly stronger internationalisation and the marked expansion of the e-commerce business. We expect the launch of further products in the Black Line to provide positive impetus for our business. We are also planning to launch a major product innovation in the cleaning category in July 2024.”

Business development in the first quarter of 2024 is in line with Leifheit AG’s full-year expectations for 2024 that were published in March. As a result, the Board of Management confirms the forecast and continues to expect slight year-on-year growth in Group turnover for financial year 2024. In addition, the Board of Management anticipates consolidated earnings before interest and taxes (EBIT) in the range of EUR 10 to EUR 12 million and a positive free cash flow of around EUR 10 million.

Further information can be found in the quarterly statement for the period ending 31 March 2024, available at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/.

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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.