DGAP-News: LR Global Holding GmbH
/ Key word(s): Quarter Results
LR Group grows significantly and successfully continues strategic initiatives aimed at future growth
Ahlen, 30 November 2021 - LR Global Holding GmbH, Europe's leading digital social selling company in the area of high-quality health and care products, has achieved significant sales growth in the first nine months of 2021 and thus continued on its dynamic growth course. In the first nine months of 2021, the LR Group achieved sales (merchandise revenue) of EUR 220.8 million, which equates to growth of 7.1% compared to sales of EUR 202.2 million in the same period of the previous year. The LR Group managed to increase its sales in all regions in the first nine months. In addition, normalised EBITDA for the first three quarters of 2021 amounted to EUR 30.1 million, compared to EUR 30.7 million in the same period of the previous year. "We successfully continued on our growth course in the first nine months of 2021. Nevertheless, it has become apparent that consumer behaviour has changed again this summer compared to the previous year in view of the advancing vaccination campaign and easing of restrictions by politicians. As expected, sales and earnings in the third quarter were lower than last year, after an exceptionally strong third quarter against the backdrop of the COVID-19 pandemic last year. All in all, we continued to develop very successfully even during the pandemic and are confident that we will even be able to achieve new record turnover in financial year 2021," explained Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH.
In the third quarter, the LR Group continued to focus on consistently pursuing its strategic initiatives and setting the course for sustainable successful company development. Before the end of this year, the already established LR Health & Beauty SE is to be established as the new parent company of the LR Group in order to facilitate access to the capital market and promote future growth. In this context, the shareholder will transfer the shareholder loans as a contribution to the free capital reserve of LR Global Holding GmbH. As another strategic initiative, LR is continuously investing in the digitalisation of its business model to meet the growing demand among young target audiences. The rollout of the LR Connect app, which also went live in the Benelux countries in October, is progressing and will be completed at the beginning of 2022. The app will enable the community to access the latest information on the product range as well as marketing toolboxes for sales activation with the end consumer. "The new LR Soul of Nature product category underscores our expertise in fragrances and ideally complements our portfolio of natural health and care products. In order to be able to meet the demand for our products even better in the future, we will build a modern logistics centre with the latest picking and shipping technology at the Ahlen site. This will enable us to further automate logistics processes in order to process orders even faster in the future. We started construction work on the 3,000 square metre building in October with the symbolic ground-breaking ceremony," said Dr. Andreas Laabs. For the current financial year 2021, the management confirms the forecast published in the 2020 Annual Financial Report and continues to expect a slight increase in revenues. As LR increased its inventories at an early stage in view of the tense situation on the global procurement market, the company considers itself well prepared for the growth planned. In addition, based on the results for the first three quarters of 2021, management is concretising its earnings forecast and expects EBITDA (reported) in the corridor of EUR 33.0 million to EUR 37.0 million for 2021. In principle, the forecast remains unchanged under the assumption that the ongoing COVID-19 pandemic, the scope of which still cannot be fully assessed, will not have any significant impact on the LR Group's business.
The report for the third quarter of 2021 is available online from today on the company's website at https://ir.lrworld.com/. 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. IR contact:
30.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| 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 |
| EQS News ID: | 1252719 |
| End of News | DGAP News Service |
1252719 30.11.2021
