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LR Group confirms growth trend in financial year 2021

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DGAP-News: LR Global Holding GmbH / Key word(s): Annual Report
LR Group confirms growth trend in financial year 2021
29.04.2022 / 07:30
The issuer is solely responsible for the content of this announcement.

LR Group confirms growth trend in financial year 2021

  • Group sales in 2021 increased by 4.0% to EUR 296.2 million

  • EBITDA reported at the upper end of the earnings forecast at EUR 36.8 million

  • Construction of the new logistics centre creates the basis for future growth

  • Effects of the Russia-Ukraine conflict not fully assessable

Ahlen, 29 April 2022 - LR Global Holding GmbH, Europe's leading digital social selling company in the area of high-quality health and care products, published its final, audited figures for financial year 2021 today, confirming the positive, preliminary figures for the past reporting year. According to these figures, the LR Group was able to increase its sales (merchandise revenues) by 4.0% to EUR 296.2 million in financial year 2021 (previous year: EUR 284.9 million) and continue its growth course after an extraordinarily strong previous year. All regions contributed positively to the development of sales in 2021.

Furthermore, based on final figures, the LR Group achieved normalised EBITDA of EUR 41.6 million in financial year 2021, compared to EUR 42.5 million in the same period of the previous year. In addition, the company improved its EBITDA reported slightly to EUR 36.8 million (previous year: EUR 36.7 million). This was at the upper end of the forecast for EBITDA reported of EUR 33 million to EUR 37 million for 2021.

"The LR Group developed successfully and further strengthened its market position in 2021. This is reflected not least in the record sales achieved in 2021. Despite the tense situation on the procurement market, we were always able to meet the increased demand for our products. We will continue to pay special attention to forward-looking management of our inventories in view of the disrupted supply chains. On the product side, with the launch of the LR Soul of Nature brand, we managed to expand our portfolio to include a select range of natural essential fragrance blends," explained Dr Andreas Laabs, CFO and COO of LR Global Holding GmbH.


LR Group sets course for sustainable growth

In the past financial year, the LR Group set the course for a sustainably successful development of the company. This also included strengthening the LR Group's capital market capability. LR Health & Beauty SE was established as the new parent company of the LR Group and the equity capitalisation was also significantly improved by reclassifying the shareholder loan as a contribution to the free capital reserve.

As another strategic initiative, LR continued to invest in the digitalisation of its business model in the reporting year in order to meet the growing demand among younger target audiences. With the rollout of the LR Connect App and the Report Creator, partners have digital access to the latest information on LR and practical tools. Internally, the new social intranet will help employees to inform themselves even better and to enter into a dialogue. Another focal point is the "Logistics 4.0" project, which was initiated together with the Theodor F. Leifeld Foundation. A new logistics centre equipped with modern picking and shipping technology is being built at the company's site in Ahlen. As part of this, LR will further automate its logistics processes so that orders can be processed even faster in the future. After the foundation stone was laid last December, construction work has been in full swing since the beginning of 2022 and is scheduled for completion in October of this year.


Outlook for 2022

"As the LR Group, we started the new financial year in line with our expectations. After achieving extraordinarily strong sales growth in the first quarter of the previous year, also due to positive effects in view of the COVID-19 pandemic, the LR Group is facing more difficult conditions in the current year. Since the end of February, the Russia-Ukraine conflict has also had an impact on our business activities, which we are not yet able to fully assess. In addition, rising raw material prices and the reduced availability of raw materials continue to pose a challenge. However, as the LR Group, we see ourselves fundamentally well positioned and able to ensure the supply capability of our products also in the months ahead. We continue to work emphatically in all markets to support our partners - especially in Ukraine - in the best possible way," commented Dr Andreas Laabs on the development to date and the outlook for the current financial year 2022.

The 2021 Annual Report is available online as of today on the company's website at https://ir.lrworld.com/.


LR Group
Following the motto "More quality for your life", the LR Group with headquarters in Ahlen/Westphalia produces and markets various health and beauty products in around 28 countries. As a modern social selling platform, the company combines personal exchange in its community with efficient, digital solutions. This expertise is particularly evident in the "LR Connect" app developed by LR itself, which supports the community in building and developing its business. The community often acting as micro influencers is young, flexible and increasingly uses social media as a sales platform.

LR's goal is to improve people's well-being and health with its portfolio - consisting of nutritional supplements and personal care, health representing close to 65% and beauty 35% of our sales. That is why the company continuously develops new products - from the power of nature in combination with the latest scientific findings.

The processing of Aloe Vera has been one of the core competencies of LR Health & Beauty for almost 20 years. Only the valuable inside of the leaf is used for the products. In Ahlen, the company has established one of the most modern Aloe Vera production sites for Aloe Vera Drinking Gels in Europe. LR has been firmly established in the market for over 35 years with around 1,200 employees and more than 300,000 registered community members. LR also established the LR Global Kids Fund e.V. which provides efficient and unbureaucratic support for deprived children and their families in many different countries around the world in cooperation with local institutions. The commitment to take responsibility in terms of ESG is part of LRs philosophy. Since 2020 LR started using FSC-certified paper, takes various measures to avoid plastic consumption and switched to green power.


Your contacts:

PR contact:
LR Global Holding
Almut Kellermeyer
Head of PR / Public Affairs
Kruppstraße 55
59227 Ahlen
Phone: 02382 7060-106
E-mail: a.kellermeyer@LRworld.com
https://ir.lrworld.com/


IR contact:
cometis AG
Thorben Burbach
Unter den Eichen 7 | Gebäude D
65195 Wiesbaden
Phone: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
E-mail: burbach@cometis.de


29.04.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

LR Global Holding GmbH

Kruppstr. 55

59227 Ahlen

Germany

Phone:

+49 238270600

E-mail:

info@lrworld.com

Internet:

www.lrworld.com

ISIN:

NO0010894850

WKN:

A3H3FM

Listed:

Regulated Unofficial Market in Frankfurt; Stockholm

EQS News ID:

1338947


 

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