Earnings Release • Aug 9, 2012
Earnings Release
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Financial report for the first half year ending 30 June 2012
| January to June | 2012 | 2011 | Change | ||
|---|---|---|---|---|---|
| Turnover | – Group | € million | 110.5 | 111.4 | -0.9% |
| – Brand Business | € million | 90.0 | 88.6 | 1.6% | |
| – Volume Business | € million | 20.5 | 22.8 | -10.4% | |
| Foreign share | 55.2% | 54.3% | 0.9 PP | ||
| Gross margin | 44.5% | 43.0% | 1.5 PP | ||
| EBIT adjusted* | € million | 5.1 | 3.9 | 33.4% | |
| EBIT | € million | 5.1 | 3.4 | 51.9% | |
| Earnings before income taxes (EBT) | € million | 4.3 | 2.5 | 68.2% | |
| Net result for the period | € million | 3.5 | 1.7 | > 100% | |
| Investments in tangible assets | € million | 4.8 | 1.6 | > 100% | |
| Cash flow from operating activities | € million | 2.2 | -5.5 | > 100% | |
| Employees (annual average) | 1,024 | 1,117 | -8.3% |
* in 2011, adjusted for unrealised currency losses from the measurement of forward foreign exchange contracts
The goal of our "Leifheit Go!" business strategy is sustainable, profitable growth. We pursued this strategy further in the first half year of 2012 and therefore generated significantly increased earnings. With EBIT growth of 51.9%, we achieved € 5.1 million (previous year: € 3.4 million).
Our Group turnover after the first six months was € 110.5 million, slightly below the prior year level of € 111.4 million. We could not fully offset the effects of rainy summer weather and especially consumer restraint in southern European countries, despite extremely favourable development in some of our other defined focus markets such as France, Austria, Russia and the Netherlands.
Our Brand Business generated a slight increase of 1.6%, but the Volume Business suffered a decline of 10.4%. This is due mainly to our Project Business in the US.
We will therefore rework our "Leifheit Go!" strategy, adjust it to the current economic situation and especially redefine our focus markets. We will address the markets in Eastern Europe and Asia more strongly from the second half of 2012 because we see excellent growth opportunities there.
Due to the deterioration of market conditions, we are proceeding on the premise that the further effects on our main sales markets in the second half of 2012 will be moderate: a turnover increase of around 2% for the whole of 2012. We also forecast a continued, higher-than-average increase in earnings (in relation to adjusted EBIT) in the double digits.
Our share price performance also remained favourable in the first half of 2012. Thus our share price again outperformed the SDAX. We are pleased about the confidence of our investors and we will do our utmost to live up to this in the second half of the year as well.
In the second quarter of 2012, the stock markets were down from the previous quarter, partly due to the continuing uncertainty from the still unclear development in Europe. The SDAX fell by around 8% in this period to close the quarter at 4,804 points.
The Leifheit share price has climbed by almost 15% since the beginning of the year. In the second quarter, the share price fell slightly in line with the movement of the market, but again put in a better performance than its benchmark index, the SDAX.
Starting from a price of € 24.56 at the beginning of April, the share reached its highest level of € 25.50 in May. The share closed on 30 June at € 23.45. This represents a decline of about 5% compared with the share price at the beginning of the second quarter. This was primarily due to the dividend discount following the Annual General Meeting, profit taking by the shareholders and the slowing capital market environment.
The trading volume of the Leifheit share rose slightly to an average of 2,206 shares per trading day in the second quarter of 2012 (Q1 2012: 2,137 shares). As of the end of the second quarter, Leifheit AG's market capitalisation amounted to approximately € 117.3 million and therefore higher than the previous year's figure of € 101.8 million.
Current analyst valuations were published in the second quarter of 2012. All of their studies had buy recommendations with price targets of up to € 30.00 over a time horizon of 12 months.
The following shareholders each hold more than 5% of our company's share capital:
| Home Beteiligungen, Munich | 48.34% |
|---|---|
| MKV Verwaltungs GmbH, Munich | 10.03% |
| Joachim Loh, Haiger | 6.62% |
| Leifheit AG, Nassau | 5.08% |
| Free float | 29.93% |
This financial report for the first half year ending 30 June 2012 was prepared in accordance with the International Financial Reporting Standards (IFRS) formulated by the International Accounting Standards Board (IASB), in particular in accordance with the provisions of IAS 34.
The same accounting methods were applied as in the consolidated financial statements as at 31 December 2011 in addition to the standards and interpretations of the IASB and IFRIC relevant to Leifheit that are mandatory from financial year 2012. This application had no significant impact.
Neither the condensed financial statements nor the interim management report were reviewed by an auditor.
The Leifheit Group is one of the leading European brand suppliers of household items. Our operating business is divided into two segments: Brand Business and Volume Business.
In the Brand Business, we distribute our products under three well-known brands: Leifheit, Dr. Oetker Bakeware and Soehnle. Our brand products are characterised by high-quality workmanship with a high degree of consumer benefit and are offered in the medium to high price sector.
The Volume Business of the Leifheit Group includes the French subsidiaries Birambeau and Herby as well as the Project Business. Here we offer product ranges in the medium price range plus customer-specific product developments and their manufacture as well as contract manufacturing for third parties.
Across both divisions, we distribute products in the categories of cleaning, laundry care, kitchen goods and wellbeing.
There were no changes in the consolidated companies during the reporting period.
According to the International Monetary Fund (IMF), the positive performance from the first few months of this year was continued at an only moderately positive level in the second quarter of 2012. Western Europe and North America showed at most a minimal improvement in the first six month of 2012. The current economic situation improved slightly in Asia.
The intensifying sovereign debt crisis – especially in southern European countries – also affected German economic growth. For example, the gross domestic product in Germany grew just 0.2% in the second quarter of 2012 according to the German Institute for Economic Research (DIW). In the first quarter this figure was still at 0.5%.
The inflation rate fell in the euro zone from 2.6% in the first quarter to 2.4% in the second quarter of 2012. In Germany, the inflation rate was just 1.7% at the end of June and thus the lowest rate since the end of 2010. The main reason for this easing in Germany was declining oil and petrol prices.
Business sentiment varies considerably in some cases between the different countries of Europe. According to the ifo expert survey, residents of Germany and Estonia still assess the current economic situation as "good", although the economic situation in most other EU countries is still not satisfactory – despite a slight improvement compared to the first quarter of 2012. As in the last quarter, Greece, Portugal, Italy, Spain and Cyprus were again bringing up the rear.
In contrast to the deteriorating economic data, Germans' income expectations improved significantly as at the end of the second quarter according to the GfK and at the same time led to a slight increase in consumption. However, due to the euro crisis and the related lack of confidence in the financial markets, consumers tended towards larger and higher value acquisitions. As in the first quarter of 2012, the domestic economy was the main pillar of economic performance in Germany.
The Leifheit Group's turnover in the first half year of 2012 was down slightly year-on-year. Group turnover decreased slightly by 0.9% to € 110.5 million (previous year: € 111.4 million).
At 49.5%, Europe excluding Germany was the largest sales market for Leifheit in the first half of 2012, followed by Germany with 44.8% and other regions with 5.7% of Group turnover. The highest growth rates were reported in Europe excluding Germany with an increase of 4.0% to € 54.7 million. Turnover in Germany decreased by 2.8% to € 49.5 million. In particular, poor weather in the spring months had a negative influence on business with rotary driers. The other regions also recorded weaker performance of € 6.3 million (previous year: € 7.9 million).
In the second quarter, the Group turnover from operating activities amounted to € 51.0 million (previous year: € 52.7 million).
The Brand Business with our Leifheit, Dr. Oetker Bakeware and Soehnle brands was a pillar of Group turnover development in the past half year as well. This division generated a total of € 90.0 million (previous year: € 88.6 million) in turnover, corresponding to year-on-year growth of 1.6%.
This result allowed the Brand Business to further expand its share of Group turnover and achieved a figure of 81.4% – 1.9 percentage points more than the corresponding comparative period. This development is proof of our consistent application of our business strategy, which aims to strengthen the Brand Business and continue our results-oriented distribution work.
Our Brand Business posted particularly high growth in the regions of Central and Eastern Europe. In Central Europe, turnover rose to € 31.8 million (previous year: € 30.5 million). Many of our focus countries, including the markets of France, the Netherlands and Austria, which are important to our business, developed positively. Sales in Switzerland increased despite the continued strength of the Swiss franc and generated double-digit growth rates.
As expected, the tense economic situation meant decreases in turnover, especially in the sales regions of Southern Europe. The ongoing euro crisis significantly slowed turnover growth in the countries of Greece, Italy and Spain.
In Eastern Europe, turnover rose to € 8.2 million (previous year: € 7.0 million). Growth in Eastern Europe benefited in particular from high demand from Russia, the Czech Republic and the Ukraine, all of which generated good double-digit growth. This more than offset declines in Poland and Romania.
With a decrease to € 46.2 million (previous year: € 47.3 million), domestic turnover in the Brand Business was weaker than in the previous year.
The overseas region remained stable at a low level and contributed € 3.8 million (same as previous year) to Group turnover. While our turnover figures in the regions of Africa, Australia, the Far East or South America were positive, we suffered relatively high losses in turnover in the Middle East and US in particular.
In the second quarter, turnover from the Brand Business fell by 1.9% to € 40.6 million (previous year: € 41.4 million).
In detail, the development of the categories in the Brand Business was as follows:
As in the first quarter, the Volume Business again reported a curbed performance after the first six months of 2012. Turnover decreased by 10.4% to € 20.5 million (previous year: € 22.8 million). Volume Business' share of Group turnover accordingly decreased by 1.9 percentage points year-on-year to 18.6%.
In Germany, turnover from the Volume Business fell to € 3.3 million (previous year: € 3.6 million). Turnover from the US was also weak, reaching € 2.5 million (previous year: € 4.1 million). This development was mainly due to a decline in Project Business with a US customer. Performance in the region of Central Europe was also down slightly, influenced mainly by turnover within France. Turnover fell to € 14.7 million (previous year: € 15.1 million).
In the second quarter, turnover from the Volume Business fell by 8.1% to € 10.4 million (previous year: € 11.3 million).
In detail, the development of the categories in the Volume Business was as follows:
Contrary to the change in turnover, the Leifheit Group further improved its earnings situation in the first half of 2012. The gross margin in the Leifheit Group increased significantly by 1.5 percentage points to 44.5% (previous year: 43.0%). Price effects, innovations, product range overhauls and deliberate avoidance of low-margin business came to bear in a 1.8 percentage point increase in the gross margin of the Brand Business. The increase was offset by currency-related higher purchase prices for goods in US dollars. In contrast to the positive development in the Brand Business, the gross margin of the Volume Business fell slightly by 0.7 percentage points.
As part of our "Leifheit Go!" strategy, we generated further rationalisation successes and process optimisations in the first half of 2012, which among other things relieved the expense burden on the Group. This was offset by higher marketing expenses in the reporting period in order to drive out umbrella brand strategy and intensify our distribution activities.
Group EBIT rose by 51.9% to € 5.1 million in the first six months (previous year: € 3.4 million). Unrealised currency effects from the measurement of forward foreign exchange contracts totalling € 0.5 million had a negative impact on EBIT in the same period of the previous year. Adjusted for this effect, the comparable figure for the previous year was € 3.9 million.
A breakdown by division shows an increase in EBIT to € 4.0 million for Brand Business (previous year: € 1.8 million). The effects of our "Leifheit GO!" strategy are particularly clear in this division. The Volume Business is a different story. We suffered an EBIT decrease to € 1.1 million (previous year: € 1.6 million) in this area. The reasons for this were the considerable increase in purchase prices as well as the abovementioned lower turnover in particular.
We also posted a positive development in our Group EBT, which rose significantly to € 4.3 million (previous year: € 2.5 million). The net result for the period also increased by € 1.8 million to € 3.5 million (previous year: € 1.7 million).
Cash flow from operating activities amounted to € 2.2 million (previous year: € -5.5 million). This was attributable to the net result for the period of € 3.5 million (previous year: € 1.7 million), depreciation and amortisation totalling € 3.2 million (previous year: € 3.3 million), the decrease in debts and other liabilities of € 1.5 million (previous year: € 6.5 million) and in particular the seasonal increase in receivables and other assets of € 2.9 million (previous year: € 4.3 million).
Cash flow from investment activities increased to € 5.8 million (previous year: € -2.3 million). Outflows for investments jumped by € 3.1 million to € 4.8 million. This was in contrast to proceeds of € 4.0 million from a purchase price receivable due to the sale of the Bathroom Furnishings division in 2010 as well as proceeds of € 6.6 million (previous year: € 0.0 million) from financial assets from the sale of promissory note loans of € 10.0 million and the purchase of a bearer bond of € 3.4 million.
Cash flow from financing activities contained mostly the paid dividend and amounted to € -6.1 million (previous year: € -14.4 million).
Additions to tangible assets amounted to € 4.8 million (previous year: € 1.6 million) and related to expansion of the production plant in the Czech Republic, tools for new products, machinery, rationalisation investments for production plants, display stands as well as tools and equipment. Additions to intangible assets were € 0.1 million (previous year: € 0.1 million).
The investment ratio amounted to 2.9% of the historic cost of the assets. We invested € 4.5 million in Brand Business and € 0.3 million in Volume Business. Investments were offset by depreciation of tangible assets amounting to € 2.5 million and amortisation of intangible assets to € 0.7 million.
Total assets decreased by € 4.1 million, from € 198.9 million on 31 December 2011 to € 194.8 million. Cash and cash equivalents climbed by € 1.8 million to € 31.3 million, whereas financial assets decreased by € 6.6 million to € 3.4 million owing to an investment in the form of a bearer bond and inflows from promissory note loans.
Trade receivables fell by € 2.4 million to € 43.6 million as against 31 December 2011, while inventories increased by € 5.7 million to € 44.1 million due to turnover. Other current assets fell by € 5.0 million to € 2.2 million. This related mainly to the remaining considerations of € 4.0 million from the sale of the Bathroom Furnishings division as well as the decrease in VAT receivables.
Trade payables decreased by € 1.4 million to € 45.5 million as against 31 December 2011.
Equity fell from € 98.9 million as at 31 December 2011 to € 96.5 million. This was chiefly attributable to the payment of the dividend of € 6.2 million. The net result for the first half year of 2012 of € 3.5 million offset this figure. The equity ratio was 49.5%
In the period under review, Leifheit used 3,646 treasury shares to issue employee shares. This corresponded to 0.07% of the share capital. The corresponding interest in the share capital was k€ 11. No treasury shares were purchased in the first half year of 2012. Including the treasury shares purchased and issued in previous years, we held 253,954 shares (5.08% of the share capital) with a value of k€ 7,750 as at 30 June 2012.
There are no subscription rights for members of Group organs and employees in accordance with section 160 para. 1 no. 5 AktG.
There are rental and leasing agreements for business premises, IT and telephone equipment, vehicles and similar assets and licensing agreements in the amount of € 4.5 million (previous year: € 5.2 million). The minimum lease payments under uncancellable operating leases amount to € 1.4 million up to one year (previous year: € 1.5 million), € 2.7 million between one and five years (previous year: € 3.2 million) and € 0.4 million for more than five years (previous year: € 0.5 million). The leases constitute operating leases within the meaning of IAS 17.
As at 30 June 2012, there were purchase commitments totalling € 1.3 million (previous year: € 1.0 million).
There are contractual obligations to acquire items of tangible assets amounting to € 2.6 million relating to tools in particular.
In addition, there are payment obligations from forward foreign exchange contracts for currency hedging in USD totalling € 15.3 million offset by contractual payment receivables of USD 20.0 million (nominal value on 30 June 2012: € 15.8 million), as well as payment obligations of USD 27.7 million offset by contractual payment receivables of € 21.1 million (nominal value on 30 June 2012: € 21.8 million).
The companies of the Group have not entered into any contingent liabilities.
After a successful 2011, we are looking back on a weaker first half of 2012 in terms of turnover development. Poor weather in the spring months had a negative influence on business with rotary driers, especially in Germany. The purchasing restraint of consumers due to the sovereign debt crisis put a significant damper on our business development, especially in the regions of Southern Europe. Business was further impaired because second quarter trade from repeat orders was held back due to the innovations presented at the spring trade fairs. However, the launch in the coming months will bring positive turnover development.
Whereas development on the earnings front gives us confidence. The key ratios here have significantly improved. The positive margin development also showed that our strategy of focussing on increasing earnings is successful.
In the first six months, the Leifheit Group employed an average of 1,024 people (previous year: 1,117) – consisting of 725 employees in Brand Business and 299 employees in Volume Business.
| Locations | 1 January to 30 June 2012 |
1 January to 30 June 2011 |
|---|---|---|
| Germany | 405 | 413 |
| Czech Republic | 378 | 431 |
| France | 176 | 186 |
| Other countries | 65 | 87 |
| Group | 1,024 | 1,117 |
The 8.3% decrease in staff mainly related to Volume Business and was due to two effects: the decline in contract manufacturing for third parties at the plant in the Czech Republic and the closing of the production plant in Tunisia in 2011. Both took place as part of our business strategy.
At 39.6%, the largest portion of our employees is in Germany, followed by 36.9% in the Czech Republic and 17.2% in France. The remaining 6.3% are spread out in different European countries and the US.
There were no personnel changes in Group organs in the reporting period in 2012.
For information on the opportunities and risks at Leifheit, please see the detailed description in the consolidated management report as at 31 December 2011. There were no material changes in the reporting period. In addition, we do not expect any individual or combined risks to threaten the company's continued existence as a going concern.
There were no transactions with related parties outside the Group in the period under review.
The parent company in whose consolidated financial statements Leifheit AG is included in is Home Beteiligungen GmbH, Munich.
Since 30 June 2012, there have been no events of particular importance that are expected to have a significant influence on the assets, financial situation and earnings of the Leifheit Group.
On 25 May 2012, a dividend of € 1.30 per no-par-value bearer share eligible to receive dividends – this is a total of € 6,169,859.80 due to 4,746,046 no-par-value bearer shares – was paid to the shareholders from the balance sheet profit of the company for financial year 2011.
For 2012, the International Monetary Fund (IMF) adjusted its second quarter forecast downward slightly. It predicts global gross domestic product (GDP) will rise by 3.5%. The IMF also still forecasts the emerging economies will continue to be the driving force with an assumed growth rate of 5.6%. The economy in the US has also recovered slightly: growth of 2.0% for 2012 as a whole is expected there. For Europe, however, the IMF continues to forecast a 0.3% decline in economic performance. GDP growth of 1.0% for 2012 is expected for Germany.
Economic worries are influencing consumer confidence in Europe. Especially in the countries that are hit hard by the sovereign debt crisis, this is resulting in a worsening consumer mood and also lower retail turnover. Consumers in Greece, Spain, Italy and Portugal are particularly pessimistic with regard to the future, which has a corresponding effect on consumption trends there. In contrast to this, sentiment in France is cautiously positive.
In Germany, the sentiment is mixed. Even though GfK shows the propensity to buy will remain positive for private households, many Germans are increasingly worrying about economic development. Sentiment is similar in specialised trade. According to a survey of specialist dealers regarding turnover expectation in the next six months, 75% of them assessed in April that their turnover would remain about the same. 21% of the companies are expecting a decline in turnover, while only 4% of those questioned expect a positive development in turnover.
The economic outlook for our business has further deteriorated in the first half of the year. In light of the continued uncertain economic development, we still consider ourselves to be well positioned. However, we cannot escape increasing consumer restraint, which is due in large part to the ongoing sovereign debt crisis in Europe. That is why we will rework our "Leifheit Go!" strategy and adjust it to the changed framework conditions. We will redefine our focus markets in particular. We will address the markets in Eastern Europe and Asia more strongly from the second half of 2012 because we see excellent growth opportunities there.
We will also adjust our expected turnover for 2012 as a whole. On the premise that the further effects on our main sales markets in the second half of 2012 will be moderate, we are expecting a turnover increase of around 2% for the whole of 2012.
Provided that the USD/EUR exchange rate improves, we still expect a higher-than-average increase in earnings (in relation to adjusted EBIT) of at least 10%. Growth is planned in Brand Business only, while the development in Volume Business is expected to remain constant at most.
Despite challenging market conditions, we are essentially confirming our earnings forecast for 2012 as a whole. The following reasons give us confidence that we will continue to reach this goal:
We are continuing to work on achieving sustainable growth in turnover and earnings and increasing our profitability in the long term.
| k€ | 1 April to 30 June 2012 |
1 April to 30 June 2011 |
1 January to 30 June 2012 |
1 January to 30 June 2011 |
|---|---|---|---|---|
| Turnover | 51,048 | 52,757 | 110,465 | 111,425 |
| Cost of sales | -28,329 | -30,003 | -61,255 | -63,485 |
| Gross profit | 22,719 | 22,754 | 49,210 | 47,940 |
| Research and development costs | -814 | -917 | -1,624 | -1,797 |
| Distribution costs | -17,151 | -16,568 | -36,098 | -35,374 |
| Administrative costs | -2,955 | -3,358 | -6,388 | -6,405 |
| Other operating income | 916 | 676 | 1,075 | 1,021 |
| Other operating expenses | -310 | -174 | -805 | -428 |
| Foreign currency losses | -53 | -549 | -232 | -1,574 |
| Earnings before interest and taxes (EBIT) | 2,352 | 1,864 | 5,138 | 3,383 |
| Net interest result | -388 | -449 | -867 | -843 |
| Earnings before income taxes (EBT) | 1,964 | 1,415 | 4,271 | 2,540 |
| Income taxes | -264 | -361 | -795 | -854 |
| Net result for the period | 1,700 | 1,054 | 3,476 | 1,686 |
| Components of comprehensive income after taxes taken directly to equity |
||||
| Currency translation of foreign operations | -80 | 28 | 70 | 71 |
| Currency translation of net investments in foreign operations | -238 | 103 | 84 | 338 |
| Comprehensive income after taxes | 1,382 | 1,185 | 3,630 | 2,095 |
| Net result for the period attributable to | ||||
| Minority interests Shareholders of the parent company |
-13 1,713 |
-3 1,057 |
-16 3,492 |
-2 1,688 |
| Net result for the period | 1,700 | 1,054 | 3,476 | 1,686 |
| Comprehensive income attributable to | ||||
| Minority interests | -17 | -3 | -18 | -2 |
| Shareholders of the parent company | 1,399 | 1,188 | 3,648 | 2,097 |
| Comprehensive income after taxes | 1,382 | 1,185 | 3,630 | 2,095 |
| Earnings per share (diluted and undiluted) | € 0.36 | € 0.22 | € 0.73 | € 0.36 |
| k€ | 30 June 2012 | 31 Dec 2011 |
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | 31,289 | 29,511 |
| Financial assets | 3,378 | 10,000 |
| Trade receivables | 43,636 | 46,067 |
| Inventories | 44,108 | 38,382 |
| Income tax receivables | 697 | 433 |
| Derivative financial instruments | 584 | 46 |
| Other current assets | 2,219 | 7,183 |
| Total current assets | 125,911 | 131,622 |
| Non-current assets | ||
| Financial assets | 5 | 5 |
| Tangible assets | 37,538 | 35,175 |
| Intangible assets | 19,784 | 20,398 |
| Deferred tax assets | 7,804 | 8,031 |
| Income tax receivables | 3,554 | 3,465 |
| Other non-current assets | 183 | 184 |
| Total non-current assets | 68,868 | 67,258 |
| Total assets | 194,779 | 198,880 |
| Current liabilities | ||
| Trade payables and other liabilities | 45,511 | 46,910 |
| Derivative financial instruments | 783 | 585 |
| Income tax liabilities | 158 | 241 |
| Provisions | 4,726 | 5,061 |
| Other current liabilities | 14 | 31 |
| Total current liabilities | 51,192 | 52,828 |
| Non-current liabilities | ||
| Provisions | 2,385 | 2,524 |
| Employee benefit obligations | 42,585 | 42,274 |
| Deferred tax liabilities | 2,066 | 2,228 |
| Other non-current liabilities | 87 | 85 |
| Total non-current liabilities | 47,123 | 47,111 |
| Equity | ||
| Subscribed capital | 15,000 | 15,000 |
| Capital surplus | 16,934 | 16,934 |
| Treasury shares | -7,750 | -7,813 |
| Appropriated surplus | 69,534 | 72,212 |
| Translation reserve | 2,677 | 2,521 |
| Minority interests | 69 | 87 |
| Total equity | 96,464 | 98,941 |
| Total equity and liabilities | 194,779 | 198,880 |
The changes in equity attributable to the shareholders of the parent company were as follows:
| k€ | Subscribed capital |
Capital surplus |
Treasury shares |
Appropriated surplus |
Translation reserve |
Total |
|---|---|---|---|---|---|---|
| As at 1 January 2011 | 15,000 | 16,934 | -7,685 | 74,364 | 2,813 | 101,426 |
| Purchase of treasury shares | – | – | -128 | – | – | -128 |
| Dividends | – | – | – | -14,227 | – | -14,227 |
| Comprehensive income | – | – | – | 1,688 | 409 | 2,097 |
| of which net result for the period | – | – | – | 1,688 | – | 1,688 |
| of which currency translation of foreign operations |
– | – | – | – | 71 | 71 |
| of which currency translation of net investments in foreign operations |
– | – | – | – | 338 | 338 |
| As at 30 June 2011 | 15,000 | 16,934 | -7,813 | 61,825 | 3,222 | 89,168 |
| As at 1 January 2012 | 15,000 | 16,934 | -7,813 | 72,212 | 2,521 | 98,854 |
| Issue of treasury shares | – | – | 63 | – | – | 63 |
| Dividends | – | – | – | -6,170 | – | -6,170 |
| Comprehensive income | – | – | – | 3,492 | 156 | 3,648 |
| of which net result for the period | – | – | – | 3,492 | – | 3,492 |
| of which currency translation of foreign operations |
– | – | – | – | 72 | 72 |
| of which currency translation of net investments in foreign operations |
– | – | – | – | 84 | 84 |
| As at 30 June 2012 | 15,000 | 16,934 | -7,750 | 69,534 | 2,677 | 96,395 |
The changes in Group equity were as follows:
| k€ | Shareholders of the parent company |
Minority interests | Total equity |
|---|---|---|---|
| As at 1 January 2011 | 101,426 | 90 | 101,516 |
| Purchase of treasury shares | -128 | – | -128 |
| Dividends | -14,227 | – | -14,227 |
| Comprehensive income | 2,097 | -2 | 2,095 |
| of which net result for the period | 1,688 | -2 | 1,686 |
| of which currency translation of foreign operations |
71 | – | 71 |
| of which currency translation of net investments in foreign operations |
338 | – | 338 |
| As at 30 June 2011 | 89,168 | 88 | 89,256 |
| As at 1 January 2012 | 98,854 | 87 | 98,941 |
| Issue of treasury shares | 63 | – | 63 |
| Dividends | -6,170 | – | -6,170 |
| Comprehensive income | 3,648 | -18 | 3,630 |
| of which net result for the period | 3,492 | -16 | 3,476 |
| of which currency translation of foreign operations |
72 | -2 | 70 |
| of which currency translation of net investments in foreign operations |
84 | – | 84 |
| As at 30 June 2012 | 96,395 | 69 | 96,464 |
| k€ | 1 January to 30 June 2012 |
1 January to 30 June 2011 |
|---|---|---|
| Net result for the period | 3,476 | 1,686 |
| Adjustments for depreciation and amortisation | 3,215 | 3,345 |
| Decrease/increase in provisions | -163 | 193 |
| Profit/loss on disposal of non-current assets | -9 | 38 |
| Increase in inventories, trade receivables and other assets not classified as investment or financing activities |
-2,862 | -4,324 |
| Decrease in trade payables and other liabilities not classified as investment or financing activities |
-1,507 | -6,475 |
| Cash flow from operating activities | 2,150 | -5,537 |
| Proceeds from the sale of a division | 4,000 | – |
| Acquisition of tangible and intangible assets | -4,847 | -1,703 |
| Investments in financial assets | – | -678 |
| Proceeds from financial assets | 6,622 | – |
| Proceeds from the disposal of non-current assets | 30 | 48 |
| Cash flow from investment activities | 5,805 | -2,333 |
| Issue/purchase of treasury shares | 63 | -128 |
| Dividends paid to the shareholders of the parent company | -6,170 | -14,227 |
| Cash flow from financing activities | -6,107 | -14,355 |
| Effects of exchange rate differences | -70 | 6 |
| Net change in cash and cash equivalents | 1,778 | -22,219 |
| Current funds at the start of the period under review | 29,511 | 26,256 |
| Current funds at the end of the period under review | 31,289 | 4,037 |
| Key figures by division as at 30 June 2012 | Brand Business |
Volume Business |
Total | |
|---|---|---|---|---|
| Turnover | € million | 90.0 | 20.5 | 110.5 |
| Gross margin | € million | 42.0 | 7.2 | 49.2 |
| Contribution margin | € million | 34.1 | 6.4 | 40.5 |
| EBIT | € million | 4.0 | 1.1 | 5.1 |
| Depreciation and amortisation | € million | 2.5 | 0.7 | 3.2 |
| Employees (annual average) | 725 | 299 | 1,024 |
| Key figures by division as at 30 June 2011 | Brand Business |
Volume Business |
Total | |
|---|---|---|---|---|
| Turnover | € million | 88.6 | 22.8 | 111.4 |
| Gross margin | € million | 39.8 | 8.2 | 48.0 |
| Contribution margin | € million | 31.9 | 7.3 | 39.2 |
| EBIT adjusted* | € million | 2.3 | 1.6 | 3.9 |
| EBIT | € million | 1.8 | 1.6 | 3.4 |
| Depreciation and amortisation | € million | 2.7 | 0.6 | 3.3 |
| Employees (annual average) | 743 | 374 | 1,117 |
* adjusted for unrealised currency gains and losses from the measurement of forward foreign exchange contracts
The Board of Management declares that, to the best of its knowledge, and in accordance with the applicable reporting principles for interim reporting, the interim financial statements give a true and fair view of the assets, earnings and financial position of the Group, and the interim management report presents a true and fair view of the business and situation of the Group, together with the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Nassau/Lahn, August 2012
Leifheit Aktiengesellschaft The Board of Management
Georg Thaller Dr Claus-O. Zacharias
This half year financial report contains forward-looking statements that are based on the management's current estimates regarding future developments. Such statements are subject to risks and uncertainties which are beyond Leifheit's ability to control or estimate precisely, such as statements on the future market environment and economic conditions, the behaviour of other market participants and government measures. If one of these uncertain or unforeseeable factors occurs or the assumptions on which these statements are based prove inaccurate, actual results could differ materially from the results cited explicitly or contained implicitly in these statements. Leifheit neither intends to, nor does it accept any specific obligation to, update forward-looking statements to reflect events or developments after the date of this report.
Technical factors (e.g. conversion of electronic formats) may lead to discrepancies between the financial statements in this half year financial report and those submitted to the Federal Gazette (Bundesanzeiger). In this case, the version submitted to the Federal Gazette is binding.
In the event of any discrepancies between this English translation of the half year financial report and the German version, the German version shall take precedence.
P.O. Box 11 65 56371 Nassau/Lahn, Germany Telephone: +49 2604 977-0 Fax: +49 2604 977-300 www.leifheit.com [email protected]
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