DGAP-News: Leifheit Aktiengesellschaft / Key word(s): Change of Personnel/Profit Warning
- Initiated strategy process will be continued: more focus on innovation
- Search for new Chairman of the Management Board has been started
- Earnings forecast adjusted
Nassau, 15 October 2018 - The Supervisory Board of Leifheit AG has today recalled Thomas Radke, CEO of Leifheit AG, as Member of the Board and released him from his duties with immediate effect. The originally appointment of Mr. Radke ran until end of 2019. The Supervisory Board will separately decide about the appointment of a successor as chairman of the Board of Management likely before the end of this year. The tasks of Mr. Radke as Chairman of the Board of Management will be taken over by Ivo Huhmann (CFO) and from 1st November 2018 along with Iraeta Munduate, as of this date Member of the Board of Management (COO) of Leifheit AG.
"The term of office of Mr. Radke is linked with the strategy ,Leifheit 2020'. In the course of the implementation of this strategy we initially achieved successes in the market. But most recently the success failed to appear and we therefore had to accept loss of confidence of investors and business partners", says Helmut Zahn, Chairman of the Supervisory Board of Leifheit AG. "We will build up on our initial successes with a readjustment of the strategy. The appropriate process has already been initiated by the Management Board. It continues to address innovative Leifheit products that meet customer needs in a faster-paced world on an even higher level. On the other hand the company as a whole strives for more efficiency and productivity. Of course, the new Chairman of the Management Board will take up and finalize the initiated strategy process", adds Zahn.
Thomas Radke became Chairman of the Board of Management of Leifheit AG on 1 January 2014. After development and presentation of the strategy "Leifheit 2020" turnover of the Group increased by 5% in business year 2015 and by 2% to 237.1 mEUR in 2016. Most recently, Leifheit achieved a turnover of 236.8 mEUR in business year 2017. Since summer of this year, a team led by Ivo Huhmann has initiated the process of readjusting the strategy. This will likely include two directions in particular: On the one hand the intent is to speed up the pace of innovation of Leifheit AG and therefore an increased focus on the topic innovation as a whole. This means e.g. that future innovations can also be developed with externals and international partners. On the other hand the company strives for more efficiency and productivity along the entire value chain. At the beginning of September Igor Iraeta Munduate was appointed as member of the Board of Management (COO) effective by 1 November 2018. He will be responsible for Purchasing, Production, Logistics and R&D.
The new strategy in parallel to a digitalization program will be developed and implemented by the then again complete Management Board and aims to achieve more profitable and sustainable growth.
"I am sure, that the initiated readjustment of the strategy will lead Leifheit back on the track of success. Our company is strong and has a lot of potential on the product side as well as highly committed employees and a competent leadership team", adds Helmut Zahn, Chairman of the Supervisory Board.
The recall of Mr. Radke will lead to provisions for personnel costs in the current financial year that will affect earnings. This effect will be intensified by revenue below expectation and other extraordinary items, which impact the EBIT. Therefore the Leifheit Group now forecasts earnings before interests and taxes (EBIT) of 13 mEUR to 14 mEUR for financial year 2018. So far, an EBIT of approximately 16 mEUR to 17 mEUR was expected. Leifheit expects the revenue for 2018 at the level of 2017 (revenue 2017: 236,8 mEUR). The third quarter is also mainly impacted by provision for personnel costs. Leifheit expects a 3rd quarter EBIT between 1,8 mEUR and 1,9 mEUR.
The quarterly financial report for third quarter 2018 will be published on 14 November 2018 as planned by the Leifheit Group.
Leifheit AG, founded in 1959, is one of the leading European brand suppliers of household items. The company stands for high quality, innovative products with great utility and functional design in the sectors of cleaning, laundry care, kitchen goods and wellbeing. Leifheit and Soehnle are among the best-known brands in Germany. In addition to the Brand Business, Leifheit AG operates in the service-oriented Volume Business via its French subsidiaries Birambeau and Herby. The Leifheit Group and its international branches combined have around 1,100 employees. More information on Leifheit is available online at www.leifheit-group.com, www.leifheit.de, www.soehnle.de.
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15.10.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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