Earnings Release • Aug 15, 2011
Earnings Release
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Internationalisation Brand Communication Innovation
| January to June | 2011 | 2010 | |
|---|---|---|---|
| Turnover – Group |
€ million | 111 | 107 |
| – Brand Business | € million | 88 | 86 |
| – Volume Business | € million | 23 | 21 |
| Foreign share | 54.3% | 55.2% | |
| Gross margin | 43.0% | 42.9% | |
| EBIT adjusted for all currency effects | € million | 5.0 | 4.6 |
| EBIT adjusted for unrealised currency effects from the measurement of forward foreign exchange contracts |
€ million | 3.9 | 5.6 |
| EBIT | € million | 3.4 | 7.7 |
| Earnings before income taxes (EBT) from continuing operations | € million | 2.5 | 6.6 |
| Net result for the period from continuing operations | € million | 1.7 | 5.5 |
| Net result for the period | € million | 1.7 | 15.6 |
| Investment in tangible assets | € million | 1.6 | 2.2 |
| Cash flow from operating activities | € million | -5.5 | 0.2 |
| Employees (annual average) | 1,117 | 1,140 |
The net result for the period in the previous year includes both continuing and discontinued operations, which relates to the net result from the Bathroom Furnishings division sold in the second quarter of 2010.
Adjustments to the previous year's figures are described on page 9 and shown in a reconciliation statement.
In this report, we will inform you of the development of business at Leifheit in the first six months of the 2011 financial year.
This financial report for the half-year ending 30 June 2011 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 2010 in addition to the standards and interpretations of the IASB and IFRIC relevant to Leifheit that are mandatory from financial year 2011. This application had no significant impact.
Neither the condensed financial statements nor the interim management report were reviewed by an auditor.
The global economic development in the second quarter of 2011 was strongly impacted by the effects of developments in Japan. As a result, economic activity slowed somewhat worldwide, albeit with significant regional differences: continued strong economic growth in developing and emerging economies is already showing initial signs of overheating such as rising inflation, whereas most developed economies have not yet fully recovered from the effects of the recent recession. Due to a lack of supply from Japan and higher commodity prices, the US economy fell short of expectations. Europe was unsettled by the Greek debt crisis, but developed surprisingly well thanks to increasing investments in Germany and France. For the current year, the International Monetary Fund (IMF) now expects growth of 4.3% after having forecast 4.4% at the beginning of the year.
Even though the consumer mood in many countries in the European Union has improved again for the first time since the financial and economic crisis, the propensity to buy is still restrained due to high unemployment rates. Although European consumers assume that the worst of the recession is over, the effects of the financial and economic crisis are still far from surmounted. In addition to the debt crisis, consumers in some countries are also particularly unsettled by the growing risk of inflation, which is making its presence felt in rising prices for basic foods and petrol. In contrast, sentiment among German consumers had improved again as at the end of the second quarter and is the highest in Europe. The strong economic data and the positive labour market outweigh the crises in Japan, the Middle East and Greece, meaning that propensity to buy is at an ongoing high level.
Net assets, financial position and results of operations Following the restructuring of the Leifheit Group in 2010 to become a pure-play manufacturer of household goods with the four core business areas of cleaning, laundry care, kitchen goods and wellbeing, the Group's business is divided into two segments:
The Brand Business represents high-quality and innovative products. It comprises the Leifheit, Dr. Oetker Bakeware and Soehnle brands as well as the expenses for Group functions.
The Volume Business is made up of the Birambeau and Herby brands. In this segment we sell products in the medium price bracket in international markets with a strong service component. Another part of the segment is the Project Business, which includes customer-specific product developments and their manufacture as well as contract manufacturing for third parties at the Blatná plant, the proceeds of which were recorded as internal sales until the sale of the Bathroom Furnishings division.
In the first six months of 2011, the Leifheit Group increased its turnover by a good 4%. Consolidated turnover increased to € 111 million. In the same period in the previous year, the corresponding segments had generated € 107 million. The foreign share was 54% (previous year: 55%).
The brands Leifheit, Dr. Oetker Bakeware and Soehnle generated turnover of € 88 million in the first half of the current year, once again exceeding the previous year's figure (€ 86 million). The Brand Business' share of Group turnover of 80% was at roughly the previous year's level (81%).
About 47% of turnover was generated outside Germany. However, the growth in the first half of the year originated mainly from the German market, where turnover increased to € 47 million (previous year: € 45 million) and pushed the domestic share to 53%.
Positive business in Germany is still chiefly influenced by two developments: increases in the distribution channels of DIY stores and Internet retail outweighed declining turnover in the distribution channels of department stores and specialist retailers. Furthermore, our investments in TV advertising paid off with higher sales.
Our Brand Business performed very differently in the various regions of our global activities and reflects the respective economic situation. In Eastern Europe, business in the Czech Republic was excellent, compensating for the weaknesses of other countries in this region. Developments continued to vary in Western and Southern Europe. While we increased our turnover considerably in France especially, many European countries as well as the US posted stagnating or declining turnover, also due to the economic conditions there. In contrast, other overseas markets developed positively, with increases generated in the Middle East, the Far East and China in particular.
In detail, the four core categories developed as follows:
repositioning begun as part of the new brand strategy is expected to produce successful results starting from 2012.
W The wellbeing category developed extremely positively overall, increasing by 9%. Our Soehnle products faced the continued challenging market for scales with substantial increases in turnover, particularly in Germany and France. We gained considerable ground with kitchen scales in particular. The new "Relax" product line has been on the market for roughly nine months and has received a positive response from our trading partners.
As in the first quarter, turnover in Brand Business rose again slightly to € 41 million in the second quarter after turnover of € 40 million in the second quarter of 2010.
The Volume Business increased its turnover by more than 10% to € 23 million (previous year: € 21 million), thereby raising its contribution to Group turnover from 19% to 20%.
This segment generated turnover in the following categories:
W Turnover in the laundry care category grew by 21% to € 6 million, thus accounting for 28% of the Volume Business. Herby was a major contributor to this with turnover of € 5 million, although this figure was slightly lower than the previous year's. However, this was more than offset by sales promotion campaigns for laundry care products within the German market.
W As planned, in the first half of 2011 in the area of wellbeing no turnover was generated outside our brand names.
After a strong first quarter, turnover in Volume Business in the second quarter again exceeded the previous year's value at € 11 million (Q2 2010: € 10 million).
Group EBIT totalled € 3.4 million (previous year: € 7.7 million). The Brand Business contributed € 1.8 million (previous year: € 5.1 million) to consolidated earnings, while the Volume Business contributed € 1.6 million (previous year: € 2.6 million).
The decrease, which contrasts with the significant turnover increase generated, is due to a number of special effects. These include firstly unrealised currency losses from the measurement of forward foreign exchange contracts for the second half of 2011, which must be measured at the rate at the respective balance sheet date. Leifheit concluded forward foreign exchange contracts to hedge risks from the procurement in US dollars at an average rate of 1.36 USD/€. The rate at the balance sheet date of 30 June 2011 was 1.45 USD/€, meaning that on the basis of the measurement there is an unrealised currency loss of € 0.5 million as compared to the measurement as at 31 December 2010. This will be settled at year end 2011. In the first half of the previous year, an unrealised currency gain of € 2.1 million had been generated. Adjusted for this effect, consolidated operating earnings (EBIT) in the first half of 2011 amounted to € 3.9 million (previous year: € 5.6 million).
In addition, there were other realised currency losses from settled foreign exchange forward contracts and from the measurement of foreign currency positions in the balance sheet of € 1.1 million. This contrasts with other foreign currency gains of € 1.0 million in the equivalent period of the previous year.
Operating EBIT adjusted for total foreign currency gains and losses climbed to € 5.0 million (previous year: € 4.6 million).
Positive margin effects were achieved by overhauling the product range in the Brand Business. These effects were partially offset by higher commodity prices, which had a negative impact on the margin development in the Volume Business in particular. Overall, the consolidated gross margin maintained at the previous year's level of 43.0% (previous year: 42.9%). This was offset by higher distribution costs, due to volume effects and expandet marketing activities as well as punitive tariffs for importing ironing boards from China.
Consolidated earnings before taxes (EBT) from continuing operations amounted to € 2.5 million as at 30 June 2011 (previous year: € 6.6 million), while earnings after taxes from continuing operations came to € 1.7 million (previous year: € 5.5 million).
The previous year's income statement included the net result for the period from discontinued operations amounting to € 10.1 million. This related to the companies of the Bathroom Furnishings division sold in the second quarter of 2010, so that the net result for the period in the first half of 2010 totalled € 15.6 million.
Cash flow from operating activities amounted to € -5.5 million in the first six months, with the € 5.0 million increase in inventories contributing in particular to this result. Cash flow from investing activities totalling € -2.3 million includes the acquisition of tangible assets and a loan to a joint venture.
Cash flow from financing activities of € -14.4 million relates to purchasing treasury shares and paying out dividends totalling € 14.2 million in May.
Total additions to non-current assets amounted to € 1.7 million in the reporting period (previous year: € 2.9 million), of which € 1.6 million (previous year: € 2.2 million) was attributable to tangible assets. The investment ratio based on the historic cost of tangible assets was therefore 1.0%.
Investments were offset by depreciation of tangible assets amounting to € 2.6 million and amortisation of intangible assets amounting to € 0.7 million.
In the Brand Business, we invested € 1.2 million in tangible assets (previous year: € 1.9 million), primarily in tools, operating equipment and office equipment. Investments in tangible assets in the Volume Business totalled € 0.4 million (previous year: € 0.3 million).
Total assets decreased by € 18.6 million, from € 207.0 million on 31 December 2010 to € 188.4 million. In addition to the € 5.0 million increase in inventories, the assets side of the balance sheet is characterised by the € 22.2 million decline in cash and cash equivalents. Trade payables decreased by € 8.3 million.
The active and passive derivative financial instruments relate to the measurement of forward foreign exchange contracts.
Equity decreased by € 12.2 million from € 101.5 million to € 89.3 million. This was due to the net result for the period of € 1.7 million and the dividend payout of € 14.2 million. The equity ratio was 47.4%.
After the net assets, financial position and results of operations were presented in detail on the previous pages, we summarise the economic situation as follows: irrespective of currency effects, operating business in the first half of 2011 fell slightly short of the planning level for earnings, particularly as a result of the commodity price situation.
In the first half of the current year, the Leifheit Group employed an average of 1,117 people (previous year: 1,140).
For information on the opportunities and risks at Leifheit, please see the detailed description in the consolidated management report as at 31 December 2010. 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.
The IMF anticipates that the recently slower global economic growth will pick up pace again in the second half of the year, meaning that an increase of 4.3% is expected as of the end of the year. There are generally good global conditions such as pent-up private and corporate investments and strong growth in most developing and emerging economies. However, the development is expected to continue to vary between the individual countries. In countries with a particularly tense financial position such as the US, the labour market also remains stressed and the recovery is therefore still at risk.
The euro-zone countries will see stronger growth than previously expected. Despite the debt crisis in Greece, Portugal and Ireland, the IMF now anticipates growth of 2.0%. For Germany, growth of as much as 3.2% is forecast on the basis of brisk investment activity. Here, the strong economy and particularly the continued positive
developments on the labour market result in greater planning security among consumers. Propensity to buy is recording a significant increase and German retail is expected to grow in line with this by 1.5% over the course of the year.
In this economic environment, there are good development opportunities for Leifheit. With its strong, quality-conscious brands, the Group – which focuses clearly on household products – remains well positioned and is fulfilling consumers' interests. A broadly diversified package of measures will help it to optimally take advantage of opportunities arising on the market and convert these into sustainable growth.
Current activities are centring on the implementation of the new sales and brand strategy. With new umbrella brand and product range strategies and optimised international positioning, the Group will be able to continue strongly expanding its growth path in the coming years. The repositioning of the kitchen goods category is expected to start seeing success from 2012. At the IFA trade fair in Berlin in September 2011, we will present further innovations in the area of pressurised steam ironing and a Soehnle "Relax" range supplemented with massaging chairs that will capture consumers' attention thanks to unique product presentation at the point of sale.
In the context of positive economic development, we expect the turnover volume at the end of the year to be 3% to 5% higher than in the previous year. Earnings will also be characterised by growth, although they will be influenced by two external factors that can be calculated to a limited extent only. Firstly, negative currency effects could offset operating profits, and secondly, a continued rise in commodity prices could negatively impact earnings. This will be countered by price adjustments for our products that are to take effect in the second half of 2011. Assuming only moderate increases in commodity prices in the second half of the year, we still expect to achieve further growth in earnings after adjustment for currency effects and thus substantiate our growth path in the long term.
There were no changes in consolidated companies in the first half of 2011.
The companies of the Group have not entered into any contingent liabilities.
There are rental and leasing agreements for business premises, IT and telephone equipment, vehicles and similar assets and licensing agreements with a remaining expense for 2011 of about € 1.5 million. These obligations total approximately € 3.7 million during the non-cancellable remaining terms until 2015. As at 30 June 2011, there were purchase commitments totalling € 1.0 million. The leases constitute operating leases within the meaning of IAS 17.
There are contractual obligations to acquire items of tangible assets amounting to € 1.3 million relating to tools in particular. In addition, there are other financial liabilities of € 0.5 million.
In addition, there were payment obligations from forward foreign exchange contracts for currency hedging in USD totalling € 39.2 million offset by contractual payment receivables of USD 52.5 million (nominal value on 30 June 2011: € 36.5 million), as well as payment obligations of USD 40.7 million offset by contractual payment receivables of € 29.8 million (nominal value on 30 June 2011: € 28.9 million).
There were payment obligations from forward foreign exchange contracts for currency hedging in CZK totalling € 1.1 million offset by contractual payment receivables of CZK 27,0 million (nominal value on 30 June 2011: € 1.1 million), as well as payment obligations of CZK 16.5 million offset by contractual payment receivables of € 0.7 million (nominal value on 30 June 2011: € 0.7 million).
There were no transactions with related parties outside the Group in the year under review.
The parent company in whose consolidated financial statements Leifheit AG is included is Home Beteiligungen GmbH, Munich.
On 27 May 2011, a dividend of € 1.00 and additional a special dividend of € 2.00, therefore in total € 3.00 per no-par-value share eligible to receive dividends, was paid from the balance sheet profit for the financial year 2010. Based on a total of 4,742,400 no-par-value shares eligible to receive dividends, the dividend distribution to shareholders totalled € 14,227,200.00.
Leifheit purchased 7,476 treasury shares in the period under review, equivalent to 0.15% of the share capital. The corresponding interest in the share capital was k€ 22.
No treasury shares were utilised in the first half of 2011.
Including the treasury shares acquired and issued in previous years, we therefore held 257,600 shares (5.15% of the share capital) with a value of k€ 7,813 as at 30 June 2011.
There are no subscription rights for members of Group organs and employees in accordance with section 160 para. 1 no. 5 AktG.
There were no personnel changes in Group organs in the first half of 2011.
There were no events after the end of the reporting period ending 30 June 2011 of particular importance for assessing the assets, financial situation and earnings of the Leifheit Group.
The following reconciliation shows the respective adjustments to the previous year's figures.
Other reclassifications:
W Changes were made to allocations to functional divisions in the financial year 2010.
Reclassification of segments:
| k€ | 1 January to 30 June 2011 |
1 January to 30 June 2010 |
Other reclas sifications |
Reclassification of segments |
1 January to 30 June 2010 published |
|---|---|---|---|---|---|
| Turnover from Brand Business | 88,617 | 86,251 | – | -4,183 | 90,434 |
| Turnover from Volume Business | 22,808 | 20,604 | – | 5,994 | 14,610 |
| Turnover | 111,425 | 106,855 | – | 1,811 | 105,044 |
| Cost of sales | -63,485 | -61,044 | – | -1,811 | -59,233 |
| Gross profit | 47,940 | 45,811 | – | – | 45,811 |
| Research and development costs | -1,797 | -1,769 | 1,257 | – | -3,026 |
| Distribution costs | -35,374 | -33,577 | -1,750 | – | -31,827 |
| Administrative costs | -6,405 | -6,430 | 493 | – | -6,923 |
| Other operating income/expenses | 593 | 550 | – | – | 550 |
| Adjusted operating earnings before interest and taxes (EBIT) |
4,957 | 4,585 | – | – | 4,585 |
| Other foreign currency losses/gains | -1,106 | 1,008 | – | – | 1,008 |
| Adjusted earnings before interest and taxes (EBIT) |
3,851 | 5,593 | – | – | 5,593 |
| Foreign currency losses/gains from measure ment of forward foreign exchange contracts |
-468 | 2,087 | – | – | 2,087 |
| Earnings before interest and taxes (EBIT) | 3,383 | 7,680 | – | – | 7,680 |
| Net interest expense | -843 | -1,091 | – | – | -1,091 |
| Earnings before income taxes (EBT) | 2,540 | 6,589 | – | – | 6,589 |
| Income taxes | -854 | -1,058 | – | – | -1,058 |
| Net result for the period from continuing operations |
1,686 | 5,531 | – | – | 5,531 |
| Net result for the period from discontinued operations |
– | 10,098 | – | – | 10,098 |
| Net result for the period | 1,686 | 15,629 | – | – | 15,629 |
| k€ | 1 April to 30 June 2011 |
1 April to 30 June 2010 |
1 January to 30 June 2011 |
1 January to 30 June 2010 |
|---|---|---|---|---|
| Turnover | 52,757 | 50,790 | 111,425 | 106,855 |
| Cost of sales | -30,003 | -28,529 | -63,485 | -61,044 |
| Gross profit | 22,754 | 22,261 | 47,940 | 45,811 |
| Research and development costs | -917 | -844 | -1,797 | -1,769 |
| Distribution costs | -16,568 | -16,234 | -35,374 | -33,577 |
| Administrative costs | -3,358 | -2,986 | -6,405 | -6,430 |
| Other operating income/expenses | 502 | 207 | 593 | 550 |
| Other foreign currency losses/gains | -651 | 793 | -1,106 | 1,008 |
| Foreign currency losses/gains from measurement of forward foreign exchange contracts |
102 | 1,557 | -468 | 2,087 |
| Earnings before interest and taxes (EBIT) from continuing operations |
1,864 | 4,754 | 3,383 | 7,680 |
| Net interest expense | -449 | -620 | -843 | -1,091 |
| Earnings before income taxes (EBT) from continuing operations | 1,415 | 4,134 | 2,540 | 6,589 |
| Income taxes | -361 | -431 | -854 | -1,058 |
| Net result for the period from continuing operations | 1,054 | 3,703 | 1,686 | 5,531 |
| Net result for the period from discontinued operations | – | 8,852 | – | 10,098 |
| Net result for the period | 1,054 | 12,555 | 1,686 | 15,629 |
| Components of comprehensive income after taxes taken directly to equity | ||||
| Currency translation of foreign operations | 28 | -1,787 | 71 | -974 |
| Currency translation of net investments in foreign operations | 103 | 166 | 338 | 507 |
| Comprehensive income after taxes | 1,185 | 10,934 | 2,095 | 15,162 |
| Net result for the period attributable to | ||||
| Minority interests | -3 | -2 | -2 | -1 |
| Shareholders of the parent Company | 1,057 | 12,557 | 1,688 | 15,630 |
| Net result for the period | 1,054 | 12,555 | 1,686 | 15,629 |
| Comprehensive income attributable to | ||||
| Minority interests | -3 | -2 | -2 | -1 |
| Shareholders of the parent Company | 1,188 | 10,936 | 2,097 | 15,163 |
| Comprehensive income after taxes | 1,185 | 10,934 | 2,095 | 15,162 |
| Earnings per share from continuing operations (diluted and undiluted) |
€ 0.22 | € 0.78 | € 0.36 | € 1.16 |
| Earnings per share based on the net result for the period (diluted and undiluted) |
€ 0.22 | € 2.64 | € 0.36 | € 3.29 |
| k€ | 30 June 2011 | 31 Dec 2010 |
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | 4,037 | 26,256 |
| Financial assets | 20,000 | 20,000 |
| Trade receivables | 44,219 | 45,511 |
| Inventories | 44,333 | 39,371 |
| Income tax receivables | 1,147 | 1,396 |
| Derivative financial instruments | 1,554 | 123 |
| Other current assets | 4,131 | 4,636 |
| Total current assets | 119,421 | 137,293 |
| Non-current assets | ||
| Financial assets | 683 | 62 |
| Tangible assets | 35,246 | 35,909 |
| Intangible assets | 19,700 | 20,305 |
| Deferred tax assets | 5,126 | 5,179 |
| Income tax receivables | 4,067 | 4,051 |
| Other non-current assets | 4,201 | 4,187 |
| Total non-current assets | 69,023 | 69,693 |
| Total assets | 188,444 | 206,986 |
| Current liabilities | ||
| Trade payables and other liabilities | 44,412 | 52,677 |
| Derivative financial instruments | 2,755 | 897 |
| Income tax liabilities | 239 | 121 |
| Provisions | 5,012 | 5,210 |
| Other current liabilities | 48 | 33 |
| Total current liabilities | 52,466 | 58,938 |
| Non-current liabilities | ||
| Provisions | 2,765 | 2,799 |
| Employee benefit obligations | 41,769 | 41,344 |
| Deferred tax liabilities | 2,188 | 2,270 |
| Other non-current liabilities | – | 119 |
| Total non-current liabilities | 46,722 | 46,532 |
| Equity | ||
| Subscribed capital | 15,000 | 15,000 |
| Capital surplus | 16,934 | 16,934 |
| Treasury shares | -7,813 | -7,685 |
| Appropriated surplus | 61,825 | 74,364 |
| Translation reserve | 3,222 | 2,813 |
| Minority interests | 88 | 90 |
| Total equity | 89,256 | 101,516 |
| Total equity and liabilities | 188,444 | 206,986 |
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 2010 | 15,000 | 16,934 | -7,685 | 73,193 | 3,404 | 100,846 |
| Dividends | – | – | – | -14,250 | – | -14,250 |
| Comprehensive income | – | – | – | 15,630 | -467 | 15,163 |
| of which net result for the period | – | – | – | 15,630 | – | 15,630 |
| of which currency translation of foreign operations |
– | – | – | – | -974 | -974 |
| of which currency translation of net investments in foreign operations |
– | – | – | – | 507 | 507 |
| As at 30 June 2010 | 15,000 | 16,934 | -7,685 | 74,573 | 2,937 | 101,759 |
| As at 1 January 2011 | 15,000 | 16,934 | -7,685 | 74,364 | 2,813 | 101,426 |
| Acquisition 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 |
| k€ | Shareholders of the parent Company |
Minority interests |
Total equity |
|---|---|---|---|
| As at 1 January 2010 | 100,846 | 83 | 100,929 |
| Dividends | -14,250 | – | -14,250 |
| Comprehensive income | 15,163 | -1 | 15,162 |
| of which net result for the period | 15,630 | -1 | 15,629 |
| of which currency translation of foreign operations |
-974 | – | -974 |
| of which currency translation of net investments in foreign operations |
507 | – | 507 |
| As at 30 June 2010 | 101,759 | 82 | 101,841 |
| As at 1 January 2011 | 101,426 | 90 | 101,516 |
| Acquisition 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 |
| k€ | 1 January to 30 June 2011 |
1 January to 30 June 2010 |
|---|---|---|
| Net result for the period from continuing operations | 1,686 | 5,532 |
| Adjustments for depreciation and amortisation | 3,345 | 3,996 |
| Increase/decrease in provisions | 193 | -495 |
| Loss/gain on disposal of non-current assets | 38 | -11 |
| Increase/decrease in inventories, trade receivables and other assets not classified as investment or financing activities |
-4,324 | 3,366 |
| Decrease in trade payables and other liabilities not classified as investment or financing activities | -6,475 | -12,193 |
| Cash flow from operating activities | -5,537 | 195 |
| Sale of a division | – | 22,936 |
| Acquisition of tangible and intangible assets | -1,703 | -3,192 |
| Investments in financial assets | -678 | -201 |
| Proceeds from the disposal of non-current assets | 48 | 783 |
| Cash flow from investment activities | -2,333 | 20,326 |
| Acquisition of treasury shares | -128 | – |
| Dividends paid to the shareholders of the parent Company | -14,227 | -14,250 |
| Cash flow from financing activities | -14,355 | -14,250 |
| Effects of exchange rate differences | 6 | -1,304 |
| Net change in cash and cash equivalents | -22,219 | 4,967 |
| Current funds at the start of the period under review | 26,256 | 32,730 |
| Current funds at the end of the period under review (including discontinued operations) | 4,037 | 37,697 |
| Cash and cash equivalents of the sold division | – | -1,703 |
| Current funds at the end of the period under review | 4,037 | 35,994 |
| Key figures by division as at 30 June 2011 |
Brand Business |
Volume Business |
Total |
|---|---|---|---|
| Turnover € million |
88 | 23 | 111 |
| Adjusted EBIT* € 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 |
| Key figures by division as at 30 June 2010 |
Brand Business |
Volume Business |
Total |
|---|---|---|---|
| Turnover € million |
86 | 21 | 107 |
| Adjusted EBIT* € million |
3.0 | 2.6 | 5.6 |
| EBIT € million |
5.1 | 2.6 | 7.7 |
| Depreciation and amortisation € million |
3.4 | 0.6 | 4.0 |
| Employees (annual average) | 762 | 378 | 1,140 |
* Adjustment relates to 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 risks and opportunities associated with the expected development of the Group for the remaining months of the financial year.
Nassau/Lahn, August 2011
Leifheit Aktiengesellschaft The Board of Management
Georg Thaller Dr Claus-O. Zacharias
This half-year financial report 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, 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 contained in this half-year financial report and those submitted to the Electronic Federal Gazette (Elektronischer Bundesanzeiger). In this case, the version submitted to the Electronic 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 Telefax: +49 2604 / 977-300 www.leifheit.com [email protected]
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