Leifheit Aktiengesellschaft: Leifheit significantly increases earnings in the first half-year of 2024

• New, holistic corporate strategy focusing on profitable growth and cost efficiency
• Group turnover in the first half-year of 2024 in line with expectations at EUR 135.0 million, noticeable catch-up effects in the second quarter of 2024
• Profitability significantly improved: gross margin increased to 44.4% (+3.5 percentage points)
• Group EBIT increased significantly to EUR 7.0 million (EUR +2.2 million)
• Free cash flow increased to EUR 9.9 million (EUR +2.3 million) 
• Forecast for Group EBIT and free cash flow raised, turnover forecast for full year 2024 confirmed
• New products provide positive impetus in the second half of the year

Nassau/Germany, 8 August 2024 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, significantly increased its profitability in the first half-year of 2024 against the backdrop of a persistently challenging market environment.

Consolidated earnings before interest and taxes (EBIT) rose to EUR 7.0 million in the first half-year of 2024. This corresponds to an increase of around 47.5% compared to the previous year’s figure of EUR 4.8 million. Special effects for strategy-related organizational adjustments in Sales and Marketing had a negative impact on earnings in the second quarter. In contrast, the improvement in the gross margin by 3.5 percentage points to 44.4%, positive product mix effects and productivity and efficiency improvements made a significant contribution to the increase in Group EBIT.

Less taxes, this equalled a net result for the period of EUR 4.7 million in the first half-year of 2024 (previous year: EUR 2.6 million). Free cash flow increased by 29.5% to EUR 9.9 million in the first half-year of 2024 (previous year: EUR 7.6 million).

In the first six months of financial year 2024, the Leifheit Group achieved turnover in line with expectations of EUR 135.0 million after EUR 138.1 million in the same period of the previous year. This corresponds to a decline in turnover of 2.2%, although the Group was already able to catch up in the second quarter of 2024 by achieving growth of 1.9%.

Alexander Reindler, Chairman of the Board of Management of Leifheit AG, explains: "The Leifheit Group is on track after the first half-year of 2024 and was able to more than fulfil expectations in terms of earnings with a significant increase in Group EBIT. The successful advertising activities for high-margin bestsellers in the core categories of cleaning and laundry care as well as the expansion of distribution in important European core markets made a significant contribution to turnover development. In particular, the strong growth in e-commerce of 9.0% had a positive impact. As part of our new corporate strategy, we will continue to accelerate the expansion of e-commerce as a key growth driver for our company."

In the Household segment, the Leifheit Group recorded a slight decline in turnover of 1.6% to EUR 113.2 million in the first half-year of 2024 (previous year: EUR 115.0 million). In this segment, the Leifheit Group was able to launch further products from the successful BLACK LINE on the market, which contributed significantly to growth in the core category of laundry care. By contrast, sales in the cleaning category were down year on year. The growth in the core area of mechanical cleaning only partially compensated for the significant decline in electrical cleaning appliances.

In the Wellbeing segment, the Group generated turnover of EUR 7.7 million in the first half-year of 2024 after EUR 8.7 million in the same period of the previous year. This corresponds to a decline of 10.7% against the backdrop of product range adjustments. The Private Label segment recorded a slight decline in turnover of 2.3% to EUR 14.1 million in the first half-year of 2024 (previous year: EUR 14.4 million).

With a view to the new strategy Alexander Reindler adds: "With our new, holistic corporate strategy for the Leifheit Group focussing on profitable growth and cost efficiency, we have given ourselves a clear compass for the coming years. We aim to be the European branded leader and specialist in mechanical cleaning and drying, with the highest level of consumer satisfaction, an entrepreneurial culture and a sustainability mindset. We will therefore concentrate on driving our defined growth and efficiency initiatives forward. Among other things, we will pay particular attention to cost, process and product range adjustments as well as lean organizational structures to increase profitability and efficiency. Modern positioning of the Leifheit brand, expansion of e-commerce and strengthening of innovative capacity are also important growth drivers. In the second half of the year, we also expect our product innovations to provide a positive impetus for our business, for example the successful BLACK LINE products and our new POWER CLEAN cleaning set with the innovative CleanBlade® technology for even more thorough cleaning results".

In July 2024, the Board of Management reassessed its expectations for 2024 as a whole. Despite expected further burdens from increasing container freight rates in the second half of the year, the Board of Management has raised its earnings forecast and now expects a Group EBIT in the range of EUR 11 million to EUR 13 million. Group EBIT was previously forecast to be in the range of EUR 10 million to EUR 12 million. On the sales side, the Board of Management expects the second half of the year to be stronger and continues to anticipate slight turnover growth for 2024 as a whole.

On this basis and against the backdrop of planned investments in production efficiency in the second half of the year, the Board of Management now expects free cash flow of around EUR 12 million for the full year 2024, after previously forecasting a figure of around EUR 10 million.

Further information can be found in the half-year financial report for the period ending 30 June 2024, which is available online at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/.

Latest images are available for download at https://www.leifheit-group.com/en/press/media-library/.
 

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.