Corporate News

LR Health & Beauty SE: Shareholder Quadriga Capital wins Evoco as major investor / Investors provide additional capital to fund successful growth strategy

• Quadriga Capital wins Evoco as major investor for LR Health & Beauty
• Investors support successful growth strategy with additional capital
• Settlement of New Bond 2024/2028 completed 

Ahlen, 26 March 2024 – LR Health & Beauty SE, Europe’s leading digital social selling platform in the area of high-quality health and beauty products, is attracting considerable interest from bondholders and investors with its social selling business model and clear corporate strategy. Quadriga Capital has now won private equity firm Evoco as a major investor in LR Health & Beauty. This is followed by further capital injection into the Company, providing LR Health & Beauty with more financial backing to further drive its strategic initiatives.

In addition, LR Health & Beauty SE has successfully placed its EUR 130 million New Bond (ISIN NO0013149658) with institutional investors, mainly from Germany and the rest of Europe. Settlement of the New Bond has now been completed. This provides the issuer of the legacy bond 2021/2024, LR Global Holding GmbH, with proceeds of approx. EUR 125 million for the premature refinancing of this bond.

Dr Andreas Laabs, CEO of LR Health & Beauty SE, said: “We are delighted that our business model and our strategy have been so well received by investors. This gives us the flexibility we need to execute our business strategy. 2024 is off to a very good start and we will now focus not only on further optimising our distribution model and launching new product innovations, but also on further digitalising our business processes. With our new digital platform, LR neo, we have created a central information hub for our partners, which we will expand to provide them with all the information they need to pursue their business activities.”

LR Group

Following the motto "More quality for your life" the LR Group with headquarters in Ahlen/Westphalia successfully produces and markets various high-quality health and beauty products in 32 countries. As an attractive social selling company, LR supports the personal exchange in its community with efficient, digital solutions. The holistic tool "LR neo" offers the international partnership all business-relevant key figures and information for their LR business in one dashboard.

LR has been firmly established on the market since 1985 as a "people business" company that focuses on people and personal advice. In times of changing working environments, the business model particularly appeals to those who are looking for more flexibility, a better work-life balance and greater financial independence. 

The processing of Aloe Vera has been one of the core competencies of LR for more than 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.

In autumn 2009, LR founded the LR Global Kids Fund e.V., which supports deprived children and their families in many countries around the world efficiently and unbureaucratically in cooperation with local institutions. For further information on our commitment to sustainability, please read our sustainability report.

LR currently has around 1,200 employees and hundreds of thousands of registered community members.

Your Contacts:
PR Contact: 
LR Global Holding    
Almut Kellermeyer     
Head of Corporate Communication    
Kruppstraße 55    
59227 Ahlen    
Phone: +49(0)2382 7813-106
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 Global Holding GmbH announces successful refinancing of its 2021/2025 bond and confirms strong sales and earnings figures for 2023

• Early refinancing of 2021/2025 bond in view of successful placement of New Bond with a volume of EUR 130 million by parent company LR Health & Beauty SE 
• Sales grew to EUR 276.5 million and EBITDA reported reached EUR 31.5 million in line with sales and earnings guidance for 2023
• Further expansion of innovative product portfolio planned with promising new launches

Ahlen, 29 February 2024 – LR Global Holding GmbH, Europe’s leading digital social selling platform in the area of high-quality health and beauty products, has successfully refinanced its 2021/2025 bond ahead of schedule, creating a foundation for a successful future business development. The parent company LR Health & Beauty SE has successfully placed a senior secured bond (ISIN NO0013149658) with a nominal volume of EUR 130 million, which is expected to generate proceeds of around EUR 125 million. The proceeds of this transaction will primarily be used for the refinancing of the 2021/2025 bond. The successful business development of the LR Group since its entry into the capital market is also reflected in its business figures. The LR Global Holding GmbH today released its Q4 2023 figures and confirmed its preliminary sales and earnings figures for the full year 2023, which exceed the previous year’s results. 

“We are very pleased with the successful placement of our New Bond and appreciate the strong interest and confidence shown by our investors. The early refinancing of our 2021/2025 bond and the related issuance of the New Bond provides us with the tailwind to continue to successfully execute our corporate strategy. In particular, we intend to focus on the launch of innovative new products and the continued digitalisation of our business in order to best support our partners in their career development,” Dr Andreas Laabs, CEO of LR Health & Beauty SE, explains.

The LR Group was able to close the financial year 2023 with strong figures. Its sales (revenue from goods sold) amounted to EUR 70.9 million in Q4 2024 (Q4 2022: EUR 72.8 million), which is just 2.7% below the previous year’s figure despite adverse currency effects. FY 2023 sales of the LR Group thus amounted to EUR 276.5 million (FY 2022: EUR 269.4 million). This corresponds to an increase of 2.6% and is within the guidance range for 2023 of EUR 275 to 280 million.

In addition, the LR Group achieved a EBITDA reported of EUR 8.9 million in Q4 2023, compared to EUR 12.8 million in the previous year’s quarter, which had benefited from extraordinary effects. FY 2023 EBITDA reported amounted to EUR 31.5 million, slightly above the previous year’s level of EUR 31.3. million. The normalized EBITDA, however, fell from EUR 13.8 million in Q4 2022 to EUR 10.1 million in Q4 2023, as the previous year’s quarter had benefited from extraordinary effects. Normalized EBITDA for the full year 2023 thus amounted to EUR 35.5 million (FY 2022: EUR 36.3 million). 

Valdemaras Gordinskis, LR Group’s Vice President Global Controlling and Investor Relations, comments: “The increase in sales and earnings in FY 2023 reflects the success of our initiatives to support the career development of our partners, as well as the expansion of our product portfolio in the health and beauty segment. Our strategic focus remains on supporting our partners with a strong 2024 agenda. We are working intensively on new product concepts and plan to launch both innovative new products and complementary products to our existing categories this year. In addition, we are digitising our processes to provide our partners with all the information they need for their activities via our new digital platform: LR neo. At the same time, we continue to prioritise cross-sponsorship and international expansion, enabling our partners to extend their social selling beyond national boundaries.”

The report on the fourth quarter of 2023 is available from today on the company website https://ir.lrworld.com/. The final, audited figures for financial year 2023 will be published together with the Annual Report on the company website at the end of April 2024. 

LR Group

Following the motto "More quality for your life" the LR Group with headquarters in Ahlen/Westphalia successfully produces and markets various high-quality health and beauty products in 32 countries. As an attractive social selling company, LR supports the personal exchange in its community with efficient, digital solutions. The holistic tool "LR neo" offers the international partnership all business-relevant key figures and information for their LR business in one dashboard.

LR has been firmly established on the market since 1985 as a "people business" company that focuses on people and personal advice. In times of changing working environments, the business model particularly appeals to those who are looking for more flexibility, a better work-life balance and greater financial independence. 

The processing of Aloe Vera has been one of the core competencies of LR for more than 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.

In autumn 2009, LR founded the LR Global Kids Fund e.V., which supports deprived children and their families in many countries around the world efficiently and unbureaucratically in cooperation with local institutions. For further information on our commitment to sustainability, please read our sustainability report.

LR currently has around 1,200 employees and hundreds of thousands of registered community members.

Your Contacts:

PR Contact: 
LR Global Holding    
Almut Kellermeyer     
Head of PR / Public Affairs    
Kruppstraße 55    
59227 Ahlen    
Phone: +49(0)2382 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 

NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, CYPRUS, HONG KONG, ITALY, JAPAN, NEW ZEALAND, SOUTH AFRICA, THE UNITED KINGDOM OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD REQUIRE ANY FURTHER MEASURES FROM LR GLOBAL HOLDING GMBH, LR HEALTH & BEAUTY SE, PARETO SECURITIES AS, FRANKFURT BRANCH, ARCTIC SECURITIES AS OR ANY OTHER PARTY.

LR Global Holding GmbH achieves sales and earnings growth in 2023 and aims to refinance its 2021/2025 bond ahead of time

• Consistent implementation of strategic measures since the LR Group entered the capital market is paying off: according to preliminary figures, the Company generated sales of EUR 276.5 million in line with its forecast and achieved EBITDA reported of EUR 31.5 million at the upper end of the forecast range
• Social Selling as a business model and the portfolio of innovative health and beauty products offer attractive growth potential
• Refinancing of 2021/2025 bond planned through issuance of a new senior secured bond with a volume of EUR 125 million by parent company LR Health & Beauty SE

Ahlen, 13 February 2024 – LR Global Holding GmbH (the “Company”), Europe’s leading digital social selling company in the area of high-quality health and beauty products, continued its successful business development in financial year 2023 and achieved its sales and earnings forecasts for 2023. According to preliminary figures, LR increased sales by around 3% year-over-year to EUR 276.5 million in 2023 (2022: EUR 269.4 million) despite negative currency effects, which is in line with its sales forecast range for 2023 of EUR 275.0 million to EUR 280.0 million. In addition, based on preliminary figures, the LR Group achieved EBITDA reported in 2023 of EUR 31.5 million (2022: EUR 31.3 million), thus reaching the upper end of its EBITDA forecast range of EUR 28 million to EUR 32 million. Normalized FY 2023 EBITDA amounted to EUR 35.5 million (2022: EUR 36.3 million).

"The initiatives implemented to promote the career development of our partners as well as the expansion of our innovative product portfolio made a significant contribution to the company’s success in the 2023 financial year. In 2024, we will continue to focus on our strategic measures to expand LR’s market position as the leading digital social selling company. We thus strive to further address megatrends such as health and the increasing importance of digital and flexible working models and provide our partners with the best possible support in successfully developing their careers,” says Dr Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE.

Early repayment of the 2021/2025 bond in the event of a successful new issue 

Driven by an even stronger positioning in the market as well as sales and earnings growth in FY 2023, the Company intends to refinance its senior secured 2021/2025 bond, ISIN NO0010894850 (the “Existing Bond”) with a volume of EUR 125 million. For this purpose, the parent company LR Health & Beauty SE plans to issue a euro-denominated senior secured corporate bond (the “New Bond”) with a target volume of EUR 125 million. The final terms and conditions of the New Bond and the annual coupon are expected to be determined after completion of the bookbuilding process of the private placement and will be published together with further information in the event of a successful New Bond issue.

Dr Andreas Laabs explains: “Having issued our first corporate bond in 2021, we have since successfully established ourselves on the capital market. By issuing a New Bond, we now see the opportunity to continue to diversify our financing structure for the coming years and create the conditions for future growth. We are therefore seeking to refinance the Existing Bond by issuing a New Bond in the “Nordic Bond” format. In recent years, we have successfully driven the LR Group’s business performance based on the consistent digitalisation of our business model and the expansion of our range of innovative health and beauty products. Together with our strong partner community and financing partners, we strive to systematically continue this path.”

LR Health & Beauty SE plans to issue a New Bond as part of a private placement to institutional investors, primarily in Germany and other European countries. The New Bond is set to be issued in the so-called “Nordic Bond” format under Swedish law, with Nordic Trustee & Agency AB (publ) as trustee. The LR Group aims to list the New Bond on the Open Market of the Frankfurt Stock Exchange. In addition, it is intended that the New Bond will be listed at Nasdaq Stockholm within a period of twelve months. In accordance with the terms and conditions of the 2021/2025 Existing Bond, the Company intends to redeem the Existing Bond at a price of 101.45% of its principal amount (plus accrued but unpaid interest) following the successful issue of the New Bond.

LR Group

Following the motto "More quality for your life" the LR Group with headquarters in Ahlen/Westphalia successfully produces and markets various high-quality health and beauty products in 32 countries. As an attractive social selling company, LR supports the personal exchange in its community with efficient, digital solutions. The holistic tool "LR neo" offers the international partnership all business-relevant key figures and information for their LR business in one dashboard.

LR has been firmly established on the market since 1985 as a "people business" company that focuses on people and personal advice. In times of changing working environments, the business model particularly appeals to those who are looking for more flexibility, a better work-life balance and greater financial independence. 

The processing of Aloe Vera has been one of the core competencies of LR for more than 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.

In autumn 2009, LR founded the LR Global Kids Fund e.V., which supports deprived children and their families in many countries around the world efficiently and unbureaucratically in cooperation with local institutions. For further information on our commitment to sustainability, please read our sustainability report.

LR currently has around 1,200 employees and hundreds of thousands of registered community members.

Your Contacts:

PR Contact: 
LR Global Holding    
Almut Kellermeyer     
Head of PR / Public Affairs    
Kruppstraße 55    
59227 Ahlen    
Phone: +49(0)2382 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 

Important Note

THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE US SECURITIES ACT. THEY MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. NO PUBLIC OFFERING WILL BE MADE IN THE UNITED STATES AND THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION TO BUY OR SUBSCRIBE FOR SECURITIES OF LR GLOBAL HOLDING GMBH AND/OR LR HEALTH & BEAUTY SE AND NO EXCHANGE OFFER IS BEING MADE IN THE UNITED STATES, AUSTRALIA, CANADA, CYPRUS, HONG KONG, ITALY, JAPAN, NEW ZEALAND, SOUTH AFRICA, THE UNITED KINGDOM OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION/SUCH OFFER WOULD REQUIRE ANY FURTHER MEASURES FROM LR GLOBAL HOLDING GMBH, LR HEALTH & BEAUTY SE, PARETO SECURITIES AS, FRANKFURT BRANCH, ARCTIC SECURITIES AS OR ANY OTHER PARTY OR BE PROHIBITED BY APPLICABLE LAW.