EQS-News: Leifheit AG confirms upward trend and significantly increases profitability in the first nine months of 2024

Leifheit AG confirms upward trend and significantly increases profitability in the first nine months of 2024

• Group turnover increases slightly to EUR 200.8 million in the first nine months of 2024
• Turnover in the third quarter of 2024 up 6.3% on the previous year
• Profitability continues to improve: gross margin increases to 44.3% (+2.9 percentage points)
• Group EBIT significantly higher at EUR 10.3 million (EUR +5.3 million)
• Free cash flow up 9.9% to EUR 14.3 million
• Group forecast for turnover, EBIT and free cash flow for full year 2024 confirmed
• Consistent implementation of new, holistic corporate strategy that focuses on profitable growth and cost efficiency

Nassau/Germany, 12 November 2024 – Based on the consistent implementation of its new corporate strategy, Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, succeeded in improving its profitability further in the first nine months of the financial year 2024.

Group earnings before interest and taxes (EBIT) increased significantly by EUR 5.3 million to EUR 10.3 million in the first nine months of 2024 (previous year: EUR 5.0 million). Special effects resulting from strategy-related organisational adjustments in sales and marketing weighed on earnings in the second quarter. By contrast, the increase in the gross margin by 2.9 percentage points to 44.3%, positive product mix effects and productivity and efficiency gains made a significant contribution to the rise in Group EBIT.

Less taxes, this equalled a net result for the period of EUR 6.8 million in the first nine months of 2024 which thus significantly exceeded the previous year's figure (previous year: EUR 2.6 million). Free cash flow grew by EUR 1.3 million to EUR 14.3 million in the first nine months of 2024 (previous year: EUR 13.0 million).

In the first nine months of the financial year 2024, the Leifheit Group generated turnover of EUR 200.8 million (previous year: EUR 200.0 million), which corresponds to a slight growth in turnover of 0.4% year on year. This is due to strong turnover development of 6.3% in the third quarter of 2024, following on from noticeable catch-up effects in the second quarter of 2024.

Alexander Reindler, Chairman of the Board of Management of Leifheit AG, explains: “In the third quarter of 2024, we continued to implement our new, holistic corporate strategy, which is geared towards profitable growth and cost efficiency. The fact that our efforts are reflected in an increase in turnover and earnings in the first nine months of 2024 is additional confirmation that we need to continue to forge ahead with our initiatives at full speed. We are placing particular emphasis on stepping up the expansion of our e-commerce operations. The e-commerce channel grew significantly by 6.6% and proved to be a key driver of turnover during the reporting period. We also pressed ahead with our advertising activities for high-margin bestsellers in our core cleaning and laundry care categories, which together with the expansion of distribution in important European core markets, made a significant contribution to the positive trend in turnover in the first nine months of 2024.”

In the Household segment, the Leifheit Group increased turnover slightly by 0.3% to EUR 166.2 million in the first nine months of 2024 (previous year: EUR 165.7 million). In this segment, products from the successful BLACK LINE and the core laundry care category contributed significantly to the company’s success.

The Wellbeing segment, which includes the Soehnle brand, generated turnover of EUR 11.0 million in the first nine months of 2024, down 10.5% on the previous year’s figure of EUR 12.3 million following assortment adjustments. The core scales business recorded growth in the reporting period and made the largest contribution to turnover in the Wellbeing segment. Turnover generated by the Private Label segment rose by 7.0% to EUR 23.6 million in the first nine months of 2024 (previous year: EUR 22.0 million). Both Birambeau, with its kitchen products, and Herby, with its laundry care range, recorded growth in turnover.

Alexander Reindler adds with regard to the new strategy: “It is our aspiration and goal to become the European branded leader and specialist in mechanical cleaning and drying. We will focus on developing e-commerce as part of our growth and efficiency initiatives. We want to extend our customer reach via digital campaigns in our European target markets. Developing innovative products is another one of our top priorities. This mindset has shaped Leifheit throughout its 65-year history. We expect our product innovations, such as the successful BLACK LINE range, to inject further momentum into our business. We also have new products in the pipeline for 2025 which will optimise our product portfolio.”

Based on the business results for the first nine months of 2024, the Board of Management confirms the earnings forecast that was adjusted upwards in July 2024 and continues to expect Group earnings before interest and taxes (EBIT) in the range of EUR 11 million to EUR 13 million for the financial year 2024. In addition, the forecast of slight growth in turnover for the full year 2024 remains unchanged.

In light of this and against the backdrop of planned investments in manufacturing efficiency in the fourth quarter of 2024, the Board of Management also continues to expect free cash flow of around EUR 12 million for the full year 2024.

Further information can be found in the quarterly statement for the period ending 30 September 2024, available at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/.

The latest images are also 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.