Leifheit kicks off financial year 2024 with higher profitability

EQS-News: Leifheit Aktiengesellschaft / Key word(s): Quarterly / Interim
Statement
Leifheit kicks off financial year 2024 with higher profitability

08.05.2024 / 07:52 CET/CEST
The issuer is solely responsible for the content of this announcement.

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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 mEUR 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/.

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.

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


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08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        Leifheit Aktiengesellschaft
                   Leifheitstraße 1
                   56377 Nassau
                   Germany
   Phone:          02604 977-0
   Fax:            02604 977-340
   E-mail:         ir@leifheit.com
   Internet:       www.leifheit-group.com
   ISIN:           DE0006464506
   WKN:            646450
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1898181

End of News EQS News Service
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1898181 08.05.2024 CET/CEST