EQS-News: Leifheit AG: Significant increase in profitability in the 2024 financial year

Leifheit AG: Significant increase in profitability in the 2024 financial year

• Group EBIT doubled to EUR 12.1 million in 2024
• Further significant improvement in free cash flow to EUR 14.2 million
• Group turnover rose slightly to EUR 259.2 million in 2024
• Increased ordinary dividend of EUR 1.15 for 2024 and an additional special dividend of EUR 0.05 proposed
• Holistic corporate strategy with long-term potential of over EUR 300 million Net Sales and 10% EBIT
• Forecast for 2025: Group turnover growth of between approx. 2 and 4% and Group EBIT in the range of EUR 15 million to EUR 17 million expected

 

Nassau/Germany, 9 April 2025 – Leifheit AG (ISIN DE0006464506), one of the leading brand suppliers of household products in Europe, successfully implemented its new corporate strategy and significantly increased its profitability in the 2024 financial year. Group earnings before interest and taxes (EBIT) doubled, totalling EUR 12.1 million for the past financial year (2023: EUR 6.0 million).

The main drivers of this development were the increase in the gross margin to 44.5% (2023: 42.1%), positive product mix effects and, as part of the holistic corporate strategy “LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE.”, realised increases in productivity and efficiency. However, one-off effects from strategy-related organisational adjustments in sales and marketing had a negative impact on earnings.

Despite increased investments in the efficiency of production amounting to EUR 14.5 million, free cash flow also improved in 2024. Free cash flow increased by EUR 2.1 million to EUR 14.2 million (2023: EUR 12.1 million). In addition to the significant increase in profitability, the Leifheit Group’s continuous working capital management also had a positive effect.

The Leifheit Group generated turnover of EUR 259.2 million (2023: EUR 258.3 million), which corresponds to a slight increase of 0.4% compared to the previous year. In particular, the growing e-commerce business and the successful acquisition of new customers in European core markets contributed to turnover development in a difficult economic environment.

Alexander Reindler, Chair of the Board of Management of Leifheit AG, explains: “The 2024 financial year was largely characterised by the development and successful implementation of our new corporate strategy. By focusing on key growth measures such as strengthening our innovative capacity in our core segments and expanding e-commerce, as well as the optimisation measures we have introduced in production, logistics and sales, we have set a course for more profitable growth and cost efficiency. In 2024, this was reflected in a strong increase in our profitability and dynamic development in many European markets.”

Turnover by region

In 2024, the Leifheit Group saw growth in all key regions outside its home market of Germany. In Germany, turnover fell by 5.6% to EUR 97.8 million (2023: EUR 103.7 million) owing to a weak consumer climate, a lack of promotions in the discounter channel, changes to ordering processes in e-commerce and the associated shifts in turnover in the European markets. In Central Europe, however, turnover increased by 2.4% to EUR 117.1 million. The Eastern Europe sales region recorded a significant increase in turnover of 7.7% to EUR 37.6 million (2023: EUR 34.9 million).

Turnover by segment

The Household segment with the Leifheit brand grew by 0.7% to EUR 213.5 million in 2024 (2023: EUR 211.9 million). The high demand for BLACK LINE products and the successful sales launch of the new POWER CLEAN set in the second half-year made a positive contribution to turnover development.

In the significantly smaller Wellbeing segment, turnover fell by 10.0% to EUR 14.7 million (2023: EUR 16.4 million), in particular owing to strategic adjustments to the product range. The core business with bathroom and kitchen scales showed stable development. In the private label segment, turnover increased by 3.3% to EUR 31.0 million (2023: EUR 30.0 million).

Group liquidity

The Leifheit Group’s capital structure remained solid in the 2024 financial year. As at 31 December 2024, liquidity increased slightly to EUR 41.4 million (2023: EUR 41.3 million). Equity stood at EUR 98.7 million as at the balance sheet date of 31 December 2024 (2023: EUR 103.8 million). As a result, the equity ratio fell by 2.8 percentage points to the still high level of 48.2% as at the reporting date. As in previous years, the Leifheit Group did not have any liabilities to banks.

Leifheit is utilising its good liquidity situation as part of its strategic capital allocation. This includes distributing attractive dividends, offering share buybacks, promoting innovation and maintaining the ability to invest.

Increased ordinary dividend and additional special dividend proposed

The Board of Management and Supervisory Board will propose an increased ordinary dividend of EUR 1.15 per dividend-entitled bearer share to the Annual General Meeting (previous year: EUR 0.95 per dividend-entitled bearer share). This proposal is in accordance with Leifheit AG’s dividend policy, which fundamentally provides for distributing roughly 75% of the net result for the period or the free cash flow of a financial year as dividends. In addition, the distribution of a special dividend in the amount of EUR 0.05 per dividend-entitled bearer share will be proposed (previous year: EUR 0.10 per dividend-entitled bearer share). The goal of the special dividend is to allow shareholders to participate in the Leifheit Group’s good liquidity. The shareholder-oriented dividend policy is supported by the share buyback program initiated in 2024, which contributes to the long-term increase in shareholder value.

Outlook

Based on its holistic corporate strategy, the Leifheit Group believes it is well equipped for the financial year 2025. Nevertheless, market conditions remain challenging in 2025 and consumer sentiment remains subdued, particularly in key European markets, which hampered the Leifheit Group’s business in the first quarter.

Against this backdrop, the Board of Management anticipates Group turnover growth of between approximately 2 and 4% for the 2025 financial year. Further positive effects on earnings are also expected as a result of the cost-cutting and efficiency measures that have been introduced, although price increases for raw materials, fluctuating container prices and uncertainties on the procurement market could also have a negative impact on earnings in the current year. Overall, the Board of Management expects Group EBIT to be in the range of EUR 15 million to EUR 17 million. In addition, free cash flow is forecast to be in the upper single-digit million-euro range.

Alexander Reindler comments: “Our vision of becoming the European branded leader for mechanical cleaning and drying by 2030 continues to drive us forward. In the medium term, we see the potential to achieve average annual turnover growth of 3 to 6% and an EBIT margin of 7 to 10% with our strategic measures. Longterm beyond 2030 we want to grow over EUR 300 million in turnover and over 10% in EBIT. We will systematically continue the strategic initiatives we have launched to take the next steps towards greater growth and profitability in the current financial year. With the launch of further product innovations in our core segments in the coming months, we’re looking to boost growth in important European core markets.”

The Leifheit Group’s full annual report 2024 are available online at https://www.leifheit-group.com/en/investor-relations/reports-and-presentations/.

The 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 993 people as of the reporting date. 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