Leifheit AG

Quarterly Report • May 7, 2025

Quarterly statement for the period ending 31 March 2025

At a glance

• Group turnover of m€ 63.7 in the first quarter of 2025 burdened by weak consumer sentiment in Europe, strategic adjustments to the product range and the insolvency of an important retail customer
• Gross margin improved to 45.6% due to productivity and efficiency increases as well as foreign currency effects
• Group EBIT totalled m€ 3.1 and was negatively impacted by the m€ 0.5 decline in the foreign currency result
• Free cash flow at m€ 7.2 due to seasonal effects and significantly increased investments
• Forecast for 2025 confirmed: Group turnover growth of around 2% to 4%, Group EBIT expected to be in the range of m€ 15 to m€ 17 and free cash flow in the upper single-digit million euro range
• Innovation pipeline for the current year provides a tailwind: successful launch of the Leifheit 4in1 window and frame cleaner in February, very promising product innovation for surface cleaning planned for June

Key figures of the Group as at 31 March

		2024	2025	Change
Turnover
Group	m€	65.9	63.7	–3.3%
Household	m€	55.4	54.2	–2.2%
Wellbeing	m€	3.9	3.6	–8.2%
Private Label	m€	6.6	5.9	–9.9%
Profitability
Gross margin	%	44.7	45.6	0.9 PPS
Free cash flow	m€	1.0	–7.2	>–100%
Foreign currency result	m€	0.3	–0.2	>–100%
EBIT	m€	3.4	3.1	–9.1%
EBIT margin	%	5.2	4.9	–0.3 PPS
Net result for the period	m€	2.2	2.0	–7.7%

Quarterly statement for the period ending 31 March 2025

Business performance

In the first quarter of 2025, the Leifheit Group consistently pursued its holistic corporate strategy "LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE." At the beginning of the year, the Group was confronted with a challenging market environment and weak consumer sentiment in important European core markets. The GfK consumer climate index remained at a very poor level of – 24.6 points in March 2025. According to the report, an increasing propensity for consumers to save is a major factor why the consumer climate has not yet significantly recovered. At the same time, strategic product range adjustments and the insolvency of an important retail customer at the end of 2024 weighed on turnover development in the first three months of 2025 compared to the same quarter of the previous year.

In the first three months of financial year 2025, the Leifheit Group generated turnover of m€ 63.7 after m€ 65.9 in the first quarter of the previous year. This corresponds to a 3.3% decline in turnover. In the first quarter of 2025, turnover in the sales regions outside Germany was below the level of the first quarter of the previous year. This was only partially compensated for by the double-digit turnover growth in the home market of Germany. Business with discounters and DIY stores developed favourably, with both recording significant growth in the reporting period.

Despite the slow start to the new financial year, the Leifheit Group considers itself to be on track and will continue to focus on driving forward the defined growth and efficiency measures in the second quarter. Innovation management is a key pillar of the strategy in order to expand the innovation pipeline by focussing on the core categories of cleaning and laundry care. February saw the successful launch of the new Leifheit 4in1 window and frame cleaner, which combines window and frame cleaning in one product solution. Another promising new product for surface cleaning is planned for June.

Group turnover by region

In Germany, the Leifheit Group significantly increased turnover by 12.9% to m€ 27.4 in the first three months of financial year 2025 (previous year: m€ 24.3). This is mainly due to the expansion of distribution in the DIY sales channel and the positive development in the discounter channel. The Leifheit Group thus generated 43.1% of its turnover in Germany (previous year: 36.9%).

In Central Europe, the Leifheit Group generated turnover of m€ 26.7 in the first quarter of 2025 (previous year: m€ 30.5). This corresponds to a 12.5% decline in turnover. Overall, the markets in Central Europe were burdened by subdued consumer sentiment, with the result that turnover in France, Belgium and elsewhere remained below the previous year's level. In the Netherlands, the insolvency of an important retail customer also had a negative impact on turnover in the reporting period. In the core market of Italy, however, the expansion of distribution led to double-digit turnover growth.

Turnover in the Eastern Europe region declined by 6.4% in the first three months of 2025, from m€ 9.3 in the first quarter of the previous year to m€ 8.7. The Leifheit Group recorded double-digit turnover growth in Poland, among other countries, where increased e-commerce activities made a significant contribution to growth. In other important Eastern European markets such as the Czech Republic, however, weak consumer demand led to lower turnover compared to the same period of the previous year.

In the markets outside Europe, turnover in the first quarter of 2025 totalled m€ 0.9 (previous year: m€ 1.8). The main reason for this development is the decline in turnover in the US.

Group turnover by segment

In the Household segment, the Leifheit Group generated turnover of m€ 54.2 in the first quarter of 2025, compared to m€ 55.4 in the first quarter of the previous year – a decline in turnover of 2.2%. While the laundry care product category recorded a slight increase in turnover in the first quarter of 2025, particularly due to a very good performance by rotary dryers, turnover in the cleaning category declined overall due to product range adjustments in electrical products. In contrast, the turnover of mechanical cleaning products, on which the strategic focus lies, increased during the reporting period.

In the Wellbeing segment with the Soehnle brand, the Group achieved turnover of m€ 3.6 in the first quarter of 2025 (previous year: m€ 3.9). This corresponds to a decline of 8.2% compared to the first quarter of the previous year, which was primarily due to adjustments to the product range.

In the Private Label segment, which comprises private-label business by the French subsidiaries Birambeau and Herby, turnover was 9.9% below the previous year's level at m€ 5.9 in the first quarter of 2025 (previous year: m€ 6.6). While Birambeau achieved a slight increase in turnover with its kitchen products, Herby recorded a significant decline in turnover with its laundry care range, which was due in particular to the insolvency of an important retail customer in the Netherlands.

002

Net assets, financial position and results of operations

In the first quarter of 2025, the Leifheit Group continued its efficiency measures for more profitable growth as part of its strategy.

The Leifheit Group generated earnings before interest and taxes (EBIT) of m€ 3.1 in the first three months of financial year 2025 (previous year: m€ 3.4). The slight decline was mainly due to lower contribution margins from the lower turnover and the decline in other operating income and the foreign currency result.

Gross profit fell slightly by m€ 0.3 to m€ 29.1 (previous year: m€ 29.4). There was a lack of corresponding contribution margins in the gross margin owing to the m€ 2.2 decline in turnover. Against the backdrop of the strategic efficiency measures, however, productivity and efficiency increases in production had an impact, which, in addition to positive foreign currency effects, contributed to an increase in the gross margin of 0.9 percentage points to 45.6% (previous year: 44.7%).

Distribution costs decreased by m€ 1.3 to m€ 19.8 (previous year: m€ 21.1) owing to lower advertising costs. In contrast, administrative costs increased slightly by m€ 0.2 to m€ 4.9 (previous year: m€ 4.7) due to higher expenses for services. Other operating income fell by m€ 0.6 to m€ 0.2 (previous year: m€ 0.8). In the first quarter of the previous year, a compensation payment of m€ 0.6 from a competitor for patent infringements had provided a positive one-off effect. The foreign currency result also fell by m€ 0.5, mainly as a result of realised exchange rate losses and foreign currency valuations due to the development of exchange rates in the first quarter 2025.

Earnings before taxes (EBT) were down slightly by m€ 0.3 to m€ 2.8 (previous year: m€ 3.1). Less taxes, this equalled a net result for the period of m€ 2.0 in the first quarter of 2025 (previous year: m€ 2.2).

Group liquidity declined by m€ 9.2 in the first three months of 2025 and amounted to m€ 32.2 as at 31 March 2025 (31 December 2024: m€ 41.4). Cash outflow from operating activities amounted to m€ 5.5 in the reporting period (previous year: cash inflow of m€ 1.4). This is mainly due to a lower increase in trade payables and other liabilities in the first quarter of 2025 compared to the same period of the previous year.

At m€ 1.8, investments in the first three months of 2025 significantly exceeded the level of the first quarter of the previous year (previous year: m€ 0.5). The Leifheit Group is investing in the expansion of production capacity in the Czech Republic. The fact that investments were postponed from the fourth quarter of 2024 to the new year also had an effect here. In addition, the year-onyear increase in turnover in March led to higher trade receivables as at the reporting date. Free cash flow thus totalled m€ – 7.2 in the first quarter (previous year: m€ 1.0).

An amount of m€ 1.9 was expended for the share buyback in the first three months of 2025 (previous year: m€ 0).

The balance sheet total increased by m€ 2.7 to m€ 207.7 compared to 31 December 2024. The seasonal increase in trade receivables of m€ 16.3 was offset on the assets side of the balance sheet by the m€ 9.2 decrease in cash and cash equivalents and the m€ 2.9 decrease in other assets.

On the liabilities side, trade payables and other liabilities increased by m€ 3.6. By contrast, pension obligations fell by m€ 2.3, mainly due to the increase in the actuarial interest rate. Equity rose by m€ 1.4 to m€ 100.1 (31 December 2024: m€ 98.7). The net result for the period of m€ 2.0 and other comprehensive income of m€ 1.3 were offset by the increase in treasury shares of m€ 1.9 due to the share buyback. The equity ratio remained stable at 48.2% compared to 31 December 2024 and thus remained at a high level.

Treasury shares – share buyback program 2024

By resolution of the Annual General Meeting on 30 September 2020, the Board of Management is authorised to acquire treasury shares until 29 September 2025 in accordance with section 71 para. 1 no. 8 AktG (German stock corporation act). The Board of Management has made use of this authorisation and acquired a total of 312,433 treasury shares in the period from 15 May 2024 to 31 March 2025 as part of the share buyback program 2024. A total of k€ 5,327 (including incidental costs) was expended for this, at an average price of € 17.05 per no-par-value bearer share.

In the first quarter of 2025, 110,072 treasury shares were acquired as part of the share buyback program. A total of k€ 1,854 (including incidental costs) was expended for this, at an average price of € 16.85 per no-par-value bearer share. No treasury shares were acquired in the first quarter of 2024.

Including the treasury shares acquired and issued in previous years, Leifheit AG held 785,974 treasury shares on 31 March 2025. This corresponds to 7.86% of the share capital. An amount of k€ 12,508 was expended for this.

There are no subscription rights for members of Group organs and employees in accordance with section 160 para. 1 no. 5 AktG.

Opportunities and risks

The opportunities and risks for the Leifheit Group were described in detail in the combined management report as at 31 December 2024. In the reporting period, there were no significant changes in the main opportunities and risks for the remaining months of the financial year. From today's perspective, there continue to be no risks that jeopardise the continued existence of the company.

Forecast for 2025

In 2025, we will focus on the consistent implementation of the holistic corporate strategy "LEADING WITH FOCUS. CREATING SUSTAINABLE VALUE." and continue to drive forward the growth and efficiency measures that we have initiated. We are thus continuing to focus our activities on profitable growth and cost efficiency. With our strategy, we are pursuing the vision of becoming the European branded leader and specialist in mechanical cleaning and drying.

We regard focusing on our core categories mechanical cleaning and drying, the expansion of e-commerce and the expansion of our innovation pipeline as central pillars for further growth. In 2025, we plan to launch further product innovations to optimally complement the range in our profitable core categories and give our business additional impetus. At the beginning of the year, we launched a significant product innovation: the 4in1 wndow and frame cleaner. In June, we will be launching another innovative product for surface cleaning. This will be accompanied by extensive marketing activities to promote the visibility and success of our new products.

Despite the slow start to financial year 2025, the Board of Management is optimistic about the current year based on its clear strategy and confirms the Group forecast for 2025. Accordingly, the Board of Management continues to expect Group turnover growth of around 2% to 4% in the financial year 2025. It also continues to expect Group EBIT in the range of m€ 15 to m€ 17. In addition, free cash flow is still forecast to be in the upper singledigit million euro range.

Further information can be found in the recently published annual report of the Leifheit Group for financial year 2024. The report is available online at https://www.leifheit-group.com/en/ investor-relations/reports-and-presentations/.

Statement of comprehensive income k€

	1 Jan to 31 Mar 2024	1 Jan to 31 Mar 2025
Turnover	65,928	63,744
Cost of turnover	–36,480	–34,651
Gross profit	29,448	29,093
Research and development costs	–1,217	–1,158
Distribution costs	–21,050	–19,841
Administrative costs	–4,740	–4,900
Other operating income	796	227
Other operating expenses	–92	–97
Foreign currency result	269	–219
EBIT	3,414	3,105
Interest income	171	187
Interest expenses	–463	–453
EBT	3,122	2,839
Income taxes	–938	–823
Net result for the period	2,184	2,016
Contributions that are not reclassified in future periods in the statement of profit or loss
Actuarial gains/losses on defined benefit pension plans	373	2,130
Income taxes from actuarial gains/losses on defined benefit pension plans	–111	–651
Contributions that may be reclassified in future periods in the statement of profit or loss
Currency translation of foreign operations	–410	204
Currency translation of net investments in foreign operations	–553	209
Income taxes from currency translation of net investments in foreign operations	165	–64
Net result of cash flow hedges	397	–786
Income taxes from cash flow hedges	–111	223
Other comprehensive income	–250	1,265
Comprehensive income after taxes	1,934	3,281
Earnings per share based on net result for the period (diluted and undiluted)	€ 0.23	€ 0.22

	k€	31 Dec 2024	31 Mar 2025
Current assets Cash and cash equivalents Trade receivables Inventories Income tax receivables Contractual assets Derivative financial instruments Other current assets Total current assets Non-current assets Intangible assets Tangible assets Right of use assets from leases Deferred tax assets Derivative financial instruments Other non-current assets Total non-current assets Total assets Current liabilities Trade payables and other liabilities Income tax liabilities Other provisions Derivative financial instruments Lease liabilities Total current liabilities Non-current liabilities Provisions for pensions and similar obligations Other provisions Deferred tax liabilities Derivative financial instruments Lease liabilities Total non-current liabilities Equity
		41,434	32,194
		40,987	57,334
Balance sheet Subscribed capital Capital surplus		48,571	47,877
		12	267
		492	537
Treasury shares Retained earnings		655	83
		4,232	1,370
		136,383	139,662
		16,908	16,859
		45,917	46,267
		1,656	1,547
		3,970	3,267
		66	–
		93	94
		68,610	68,034
		204,993	207,696
		45,644	49,236
		988	1,445
		3,135	2,781
		12	174
		709	702
		50,488	54,338
		50,897	48,560
		3,613	3,459
		272	215
		–	77
		1,006	904
		55,788	53,215
		30,000	30,000
		17,193	17,193
		–10,654	–12,508
		68,065	70,080
	Other reserves	–5,887	–4,622
	Total equity	98,717	100,143
	Total equity and liabilities	204,993	207,696

Statement of cash flow k€

	1 Jan to 31 Mar 2024	1 Jan to 31 Mar 2025
Net result for the period	2,184	2,016
Depreciation and amortisation	1,908	1,926
Change in provisions	–65	–719
Result from disposal of fixed assets and other non-current assets	–46	–44
Change in inventories, trade receivables and other assets not classified as investment or financing activities	–14,442	–13,078
Change in trade payables and other liabilities not classified as investment or financing activities	11,662	4,180
Other non-cash expenses and income	228	247
Cash flow from operating activities	1,429	–5,472
Investments from the sale of fixed assets and other non-current assets	82	122
Payments for the purchase of tangible and intangible assets	–509	–1,845
Cash flow from investment activities	–427	–1,723
Change in treasury shares	–	–1,854
Payments for lease liabilities	–152	–192
Cash flow from financing activities	–152	–2,046
Change in cash and cash equivalents	850	–9,241
Change in cash and cash equivalents due to exchange rates	17	1
Cash and cash equivalents at the start of the reporting period	41,275	41,434
Cash and cash equivalents at the end of the reporting period	42,142	32,194

Segment reporting	Key figures by reportable segments as at 31 March 2025 in m€	Household	Wellbeing	Private Label	Total
	External turnover	54.2	3.6	5.9	63.7
	Turnover with Group companies	0.0	0.0	0.8	0.8
	Gross profit	26.2	1.7	1.2	29.1
	Segment result (EBIT)	2.9	0.2	0.0	3.1
	Depreciation and amortisation	1.8	0.0	0.2	2.0

Key figures by reportable segments as at 31 March 2024 in m€	Household	Wellbeing	Private Label	Total
External turnover	55.4	3.9	6.6	65.9
Turnover with Group companies	0.0	0.0	0.8	0.8
Gross profit	26.1	1.7	1.6	29.4
Segment result (EBIT)	2.9	0.1	0.4	3.4
Depreciation and amortisation	1.7	0.0	0.2	1.9

Information on the segments and their management is available in the annual report 2024.

Additional information

This quarterly statement is in accordance with section 53 of the exchange rules for the Frankfurter Wertpapierbörse. It is not a quarterly financial report according to the requirements of section 115 of the German securities trading act (WpHG). It was neither audited nor reviewed by an auditor. The results of the current reporting quarter do not necessarily make it possible to draw conclusions regarding the development of future results.

The accounting and valuation principles used by Leifheit correspond to those of the most recently published consolidated financial statements as at the end of the previous financial year, while taking into consideration the accounting regulations to be applied for the first time. A detailed description can be found in the notes to the annual report 2024 of the Leifheit Group, which is available online at https://www.leifheit-group.com/en/ investor-relations/reports-and-presentations/.

The reporting period saw no personnel changes in Leifheit AG organs. There were no changes in the scope of consolidation or major changes in the organisational structure or business model.

Disclaimer

Forward-looking statements

This statement contains forward-looking statements which are based on the management's current estimates with regard to future developments. Such statements are subject to risks and uncertainties which are beyond Leifheit's ability to control or estimate precisely. They include, for example, statements on the future market environment and economic conditions, the behaviour of other market participants and government measures. If one of these or other uncertain or unforeseeable factors occurs, or if 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 does not intend to update forward-looking statements to reflect events or developments after the date of this statement, nor does it accept any specific obligation to do so.

In the event of any discrepancies between this English translation and the German version, the German version shall take precedence.

Minor differences may occur when using rounded amounts and percentages due to commercial rounding.

Financial calendar

12–15 May 2025	Spring conference Frankfurt/Main
28 May 2025	Annual General Meeting German National Library, Frankfurt/Main
11 Jun 2025	Warburg Highlights 2025 Hamburg
7 Aug 2025	Financial report for the first half-year ending 30 June 2025
22 Sep 2025	Baader Investment Conference Munich
6 Nov 2025	Quarterly statement for the period ending 30 September 2025
24–26 Nov 2025	German Equity Forum Frankfurt/Main

PO Box 11 65 56371 Nassau/Lahn, Germany Phone: +49 2604 977-0 www.leifheit-group.com ir@leifheit.com