Leifheit (LEI) Q1 2024 earnings summary

Executive summary

• Q1 turnover was €65.9m, down 6.2% YoY, mainly reflecting the comparison with prior-year discounter promotions; e-commerce growth of 11.6% partly offset the decline.

• Gross margin improved 4.2 pp to 44.7%, and EBIT rose to €3.4m from €2.3m.

• Free cash flow improved to €1.0m from -€3.4m in Q1 2023.

Financial highlights

• Turnover was €65.9m versus €70.3m; gross profit rose to €29.5m from €28.5m despite lower sales.

• EBT increased to €3.1m from €1.9m, and net result to €2.2m from €1.3m.

• EPS was €0.23 versus €0.13 in Q1 2023.

Outlook and guidance

• FY 2024 guidance was confirmed: slight turnover growth, EBIT of €10m–€12m and positive free cash flow of ~€10m; Household and Private Label turnover were expected slightly above prior year, Wellbeing slightly below.

• A holistic strategy planned from June 2024 prioritizes profitable growth, core segments, innovation, European internationalization, e-commerce and cost efficiency.

• Further Black Line products launched in Q1; major cleaning-category innovation was planned from July 2024.