DGAP-News: LR Global Holding GmbH / Key word(s): Quarter Results
LR Group off to a successful start in financial year 2021
Ahlen, 31 May 2021 - LR Global Holding GmbH, a leading digital social selling company in the field of high-quality health and care products, achieved significant growth in revenue and earnings in the first quarter of 2021 and thus continued on its dynamic growth course. In the first three months of 2021, the LR Group achieved revenue of EUR 79.5 million (previous year: EUR 69.0 million), a significant increase of 15.2% compared to the previous year. At the same time, normalised earnings before interest, taxes, depreciation and amortisation (EBITDA norm.) increased significantly from EUR 8.1 million to EUR 11.3 million. The considerable increase in earnings is essentially due to the strong growth in revenue at the beginning of the year.
"After the record year 2020, we are very satisfied with the start to the current financial year 2021. In terms of sales, we were able to achieve the most successful quarter in LR's company history and thus disproportionately increase our earnings compared to the first quarter of the previous year. Strong growth rates in some regions, such as the DACH region and France, contributed significantly to this. At the same time, we continued to work consistently on the digitalisation of our business model in order to expand our social selling platform and further improve the structures for sales. In times of the pandemic, our business model has proven to be extremely robust and we are experiencing growing popularity, especially among young target audiences," commented Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH.
As a modern social selling partner, LR distributes over 300 products in the areas of health and beauty (nutritional supplements and cosmetics) via its partner community with currently more than 340,000 active sales partners and customers. The LR Group is currently active in 28 countries worldwide. The company entered the market in South Korea in March 2021. Business activities have started off well there and the LR Group is now present with selected health and beauty products. This step is in line with the strategy of continuing its international expansion and further expanding its market position in the Asian region.
Based on the results for the first quarter, the management continues to expect a positive business development with stable growth for the current financial year 2021. The forecast is based on the assumption that the ongoing COVID-19 pandemic, the extent of which still cannot be fully assessed, will not have any significant impact on the LR Group's business.
The report for the first quarter of 2021 is available online as of today on the company's website at https://www.lrworld.com/investorrelations.
LR's goal is to improve people's well-being and health with its portfolio - consisting of care and decorative cosmetics, nutritional supplements and fragrances. 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 more than 18 years. Only the valuable inside of the leaf is used for the products. In Ahlen, the company has established the most modern Aloe Vera production site for Aloe Vera Drinking Gels in Europe. In the fragrance segment, LR cooperates with national and international stars such as Guido Maria Kretschmer, Bruce Willis, Emma Heming-Willis and Cristina Ferreira. LR has been firmly established in the market for over 35 years with around 1,200 employees and thousands of registered sales partners. 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.
31.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
LR Global Holding GmbH
Regulated Unofficial Market in Frankfurt
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