Corporate News

LR Group confirms preliminary figures for the first half of 2022 

• Group sales in the first half of 2022 at EUR 131.5 million
• Normalized EBITDA of EUR 16.5 million 
• Outlook for 2022: Positive impetus in the second half of the year from the sales offensive and the upcoming launch of new products 

Ahlen, August 31, 2022 – LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, today publishes its final Interim Report 2022 and confirms the preliminary figures for the first half of 2022 already announced on August 10, 2022. According to the report, the LR Group generated sales (revenue from goods sold) of EUR 131.5 million in the first six months of 2022 (previous year: EUR 153.2 million). In addition, the LR Group achieved normalized EBITDA of EUR 16.5 million in the first half of 2022, compared to EUR 22.7 million in the same period of the previous year.

Dr. Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE, explains: “LR’s business model has proven to be resilient also in the first half of the year. With our ongoing sales offensive ‘Crazy Summer’ and the new product launches we have planned, we want to continue to give our business positive impetus in the second half of the year and create optimal conditions for our partners’ success. Alongside this, in view of the challenging underlying conditions, we will continue to focus on forward-looking procurement management in order to source the resources we need as efficiently as possible while ensuring our ability to deliver.”

Further information on the first half of 2022 is available as of today in the Interim Report 2022 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

LR Group with a solid performance in first half of 2022 despite challenging market conditions

• Group sales on a preliminary basis in the first half of 2022 at EUR 131.5 million
• Normalized EBITDA of EUR 16.5 million
• Business continues to be impacted by the effects of the Russia-Ukraine war
• Sales offensive and upcoming new product launches pave the way for a promising second half-year

Ahlen, 10 August 2022 – LR Global Holding GmbH, the leading digitally-enabled social selling company in the area of high-quality health and beauty products, has announced the results of its business performance in the first half of financial year 2022. Based on preliminary figures, the LR Group generated sales (sales from goods sold) of EUR 131.5 million in the first six months of 2022. This represents a decline of 14.2% compared to the extraordinarily strong previous year’s figure (previous year: EUR 153.2 million). While the COVID-19 pandemic had a positive effect on demand in the first half of the previous year, the general consumer mood was noticeably subdued in the second quarter of the current financial year against the backdrop of the effects of the Russia-Ukraine war and increased consumer prices. This had a corresponding effect on the development of sales in the second quarter, in which the LR Group achieved sales of EUR 62.9 million (previous year: EUR 73.7 million).

Furthermore, the LR Group achieved normalized EBITDA of EUR 16.5 million in the first half of 2022, compared to EUR 22.7 million in the same period of the previous year. This decrease is mainly due to lower sales compared to the previous year.

“In the first half of the year, we have seen that the effects of the war in Ukraine and the consequences of inflation are negatively affecting economic growth. This is accompanied by restrained consumer behaviour in the European markets. As LR Group, we were able to ensure the ability to deliver our products in the first half of the year despite the challenges in the supply chain, also thanks to forward-looking procurement management. In addition, we have turned important levers in the company and were thus able to consistently raise cost reduction potentials. We will continue to pay special attention to this in view of the challenging framework conditions,” said Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of LR Group.

LR Group prepares product launch for autumn

The LR Group continues to focus on creating the conditions for a sustainably successful company development. A sales offensive in numerous markets is planned for the second half of the year. On the one hand, LR will continue the intensified sales activities for Aloe Vera products on the occasion of their 20th anniversary. In doing so, the partners can draw on a range of currently around 60 Aloe Vera products. On the other hand, various initiatives are running under the motto “Crazy Summer” to support the partners in developing their business in the best possible way. 

“LR’s business model has proven to be very robust in difficult economic times. Due to persistently high inflation, many people are looking for additional income. LR offers a unique opportunity to achieve this very goal. With our sales offensive and the planned launch of new products, we are creating optimal conditions for our partners’ success,” commented Dr. Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE.

For the current financial year 2022, the LR Group now expects sales (sales from goods sold) in the range of EUR 260 million to EUR 270 million. Furthermore, EBITDA reported is expected in a range of EUR 22 million to EUR 30 million.

This forecast is based on the assumption that the effects of the war in Ukraine and inflation in the second half of the year will not lead to significant unexpected effects on the LR Group’s business. In this context, it cannot be completely ruled out that a further increase in consumer restraint could also have a noticeable negative impact on the LR Group’s business development.

Overall, the LR Group is currently confronted with global macroeconomic conditions that are difficult to assess. In order to take the resulting uncertainty regarding future business development into account in the best possible way, LR is considering to adjust the financial covenants of the 2021/2025 bond issued by LR Global Holding.

The final figures for the first half of 2022 will be published on the company’s website at https://ir.lrworld.com/ at the end of August.

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

LR Group off to a solid start in financial year 2022

• Group sales amount to EUR 68.6 million in first quarter of 2022
• Normalised EBITDA at EUR 9.6 million 
• Effects of the Russia-Ukraine conflict impact business activities 

Ahlen, 31 May 2022 – LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, published its figures for the first quarter of financial year 2022 today. According to these, the LR Group managed to achieve sales (revenue from sold goods) of EUR 68.6 million in the first three months of 2022. This represents a decline of 13.7% compared to the extraordinarily strong quarter of the previous year (previous year: EUR 79.5 million), which was characterised by positive effects in view of the COVID-19 pandemic. By contrast, the general consumer mood cooled noticeably in the spring of 2022 against the backdrop of the effects of the Russia-Ukraine war and higher consumer prices.

Furthermore, the LR Group achieved normalised EBITDA of EUR 9.6 million in the first quarter of 2022, compared to EUR 11.3 million in the same period of the previous year. This decline is essentially due to the lower sales compared to the previous year.

“The LR Group started into the new financial year as expected. With the outbreak of the Russia-Ukraine war at the end of February, the general conditions have also changed considerably for our company. The economic growth we had anticipated is being slowed down by the effects of the war in Ukraine. The resulting uncertainty as well as the consequences of the currently rising inflation can be felt in all European markets. We are working hard to manage the challenges on the procurement side for the LR Group and to ensure that our products can be supplied. Under the given circumstances, we were successful at this in the first quarter,” explained Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group.

LR Group drives business activities forward 

In the meantime, the LR Group is concentrating on creating the conditions for the company’s sustainable successful development. This includes the construction of a new logistics centre with modern picking and shipping technology at its site in Ahlen. As part of this project, LR will further automate its logistics processes so that orders can be processed even faster in the future. On the product side, the focus in the current financial year is on intensified sales activities for its aloe vera products – an LR trademark since 2002. The product range currently comprises around 60 products containing aloe vera and the range is constantly being expanded.

“Despite the more difficult general conditions, we will continue to drive our business activities forward and support our partners in the individual markets in the best possible way. On the occasion of our 20th anniversary this year, we will focus on our aloe vera products, which are a true success story for LR. More than 72 million bottles of Aloe Vera Drinking Gels alone have already been sold. In these challenging times, we are once again focusing on a close exchange with our partners, whether through the established digital channels or our Business Days, which were recently held in Germany and met with a great response. Overall, we see ourselves well positioned and will continue to drive the important strategic topics forward,” added Dr. Andreas Laabs, who took over as Chief Executive Officer (CEO) of LR Health & Beauty SE on 27 May 2022 and thus assumed management responsibility for the entire LR Group. 

The report for the first quarter of 2022 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