Leifheit Reports Increase in Profitability in Q1 2024 Despite Sales Decline

Leifheit Aktiengesellschaft, a leading European household product supplier, has reported an increase in profitability for the first quarter of the financial year 2024, with a significant improvement in gross margin and earnings before interest and taxes (EBIT). The Group's turnover reached EUR 65.9 million, marking a 6.2% decrease, attributed to the absence of last year's promotional boosts from discount retailers. Despite this, enhanced product mix effects and operational efficiencies pushed the gross margin up by 4.2 percentage points to 44.7%.

The company also disclosed a considerable rise in consolidated EBIT, which climbed to EUR 3.4 million from EUR 2.3 million in the previous year, alongside a recovery in free cash flow from a negative EUR 3.4 million in Q1 2023 to a positive EUR 1.0 million. These financial improvements come amid slightly declining sales in Household, Wellbeing, and Private Label segments. Further, Leifheit confirmed its consolidated earnings forecast for 2024, projecting an EBIT between EUR 10 million and EUR 12 million, with positive free cash flow around EUR 10 million.