LR Health & Beauty SE
LR Group achieves new sales record in fiscal year 2021

LR Group achieves new sales record in fiscal year 2021

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

– Fourth quarter of 2021 contributes EUR 75.5 million to total sales in 2021

– Normalised EBITDA of EUR 41.6 million

– Expansion in 2021 successfully driven by market entry in South Korea and the launch of new brands

Ahlen, 28 February 2022 – LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, released its preliminary figures for the fourth quarter and the full year 2021 today. Following an exceptionally strong previous year, LR Group continued its dynamic growth trajectory and achieved record sales (revenue from goods sold) of EUR 296.2 million in fiscal year 2021. This equates to growth of 4.0% compared to sales of EUR 284.9 million the previous year. The LR Group succeeded in increasing its sales in all regions in 2021. In the final quarter of 2021, the company generated sales of EUR 75.5 million, thus recording the second-best fourth quarter in its history after the extraordinarily strong quarter of the previous year (EUR 78.7 million). The lockdown and the resulting change in consumer behavior gave LR’s business additional positive impetus in the final quarter of 2020.

Furthermore, on a preliminary basis, the LR Group achieved normalised EBITDA of EUR 41.6 million in fiscal year 2021, compared to EUR 42.5 million in the same period of the previous year. EBITDA reported increased slightly from EUR 36.7 million to EUR 36.8 million in 2021. The company was thus able to meet its guidance for EBITDA reported issued for fiscal year 2021.

As Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH, explains: “We successfully continued our positive business development in 2021 and achieved new record sales despite the challenging market conditions. Thanks to the early restocking of our inventories, we were able to meet the demand for our products in the final quarter as usual. Christmas business was very good overall and also raised more than EUR 105,000 for the LR Global Kids Fund as part of our charity commitment. Nevertheless, at the beginning of 2022, we see a continued tense situation on the global procurement market and the trend of rising costs for raw materials and energy. In the course of strict cost and resource management, we will focus our attention on maneuvering the LR Group through these difficult waters in the best possible way.”

Prerequisites created for the future success of the company

In the past fiscal year, the LR Group set the course for the sustainable successful development of the company. With its successful market entry in South Korea, LR was able to drive its international expansion and tap into the Asian market. The signs are also pointing to growth on the product side: With the launch of the LR Soul of Nature brand, LR has expanded its product portfolio to include a selected range of natural essential fragrance blends, and the company entered the sports segment with its new fitness brand LR:GO in February of this year.

“In the year under review, we made further progress in creating the structures for the future growth of the LR Group and strengthening our capital market capability. On the one hand, LR Health & Beauty SE was established as the new parent company of the LR Group. Secondly, the shareholder transferred the shareholder loans as a contribution to the free capital reserve of LR Global Holding GmbH in November. As a result of this reclassification, the equity capitalisation has improved significantly as of the reporting date,” said Dr. Andreas Laabs.

The report for the fourth quarter of 2021 is available online as of today on the company’s website at https://ir.lrworld.com/. The final, audited figures for fiscal year 2021 will be published with the Annual Report on the company website at the end of April 2022.

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/


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