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LR Group achieves substantial sales and earnings growth in Q2 2023

• Sales up 9.4% yoy to EUR 68.9 million in Q2 2023 
• Normalized EBITDA of EUR 8.8 million clearly up on prior-year figure in Q2 2023
• In the first half of the year, sales increased to EUR 140.9 million and normalized EBITDA to EUR 17.6 million
• Successful launch of UK market activities in August 
• Forecast for full year 2023 confirmed

Ahlen, 31 August 2023 – LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, today released its figures for the second quarter of the 2023 financial year and the first half of 2023. The LR Group was able to increase sales (revenue from goods sold) by 9.4% from EUR 63.0 million in the second quarter of the previous year to EUR 68.9 million in the second quarter of 2023. In the first half of 2023, the LR Group thus achieved sales of EUR 140.9 million, compared to EUR 131.5 million in the same period of the previous year. This corresponds to a 7.1% increase in sales. The strong sales performance reflects the success of the initiatives introduced to promote the career development of LR partners in conjunction with an expansion of the Group’s innovative product range.

In addition, the LR Group improved its reported EBITDA by 34.1% to EUR 7.6 million in the second quarter, compared to EUR 5.7 million in the second quarter of the previous year. In the first half of 2023, the reported EBITDA increased by 12.2% to EUR 15.5 million, compared to EUR 13.8 million in the first six months of the previous year. Normalized EBITDA also rose significantly from EUR 6.9 million in the second quarter of the previous year to EUR 8.8 million in the second quarter of 2023. In the first half of 2023, the normalized EBITDA thus amounted to EUR 17.6 million (H1 2022: EUR 16.5 million).

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “Our impressive results in the first half of 2023 show that the strategic measures we have introduced are beginning to bear fruit and that we were able to achieve a predominantly strong performance despite the weaker consumer climate in our sales markets. With our introductory programmes for newcomers, we have gained many additional partners who want to take advantage of the opportunities offered by a career with LR and build an attractive additional income for themselves. Furthermore, many existing partners have succeeded in further developing their careers. This has significantly contributed to the company’s success in the first half of 2023.”

Focus on international expansion

Meanwhile, the LR Group continues to drive its international expansion and has launched its business activities in the growth market of the UK as planned on 1 August 2023. The UK with its four countries England, Wales, Scotland and Northern Ireland boasts an overall population of around 70 million and offers favourable market conditions for the planned expansion of the business in Europe.

“We are very happy with our launch in the UK and confident that LR will firmly establish itself in this market, driven by its strong business model and high-quality products ‘Made in Germany’. The positive reactions of potential sales partners confirm that there is great interest in our company and future cooperation. Our existing partners are now able to cross-sponsor in the UK and thus also establish a foothold in this market. In doing so, we benefit from the digital sales structures that enable our partners to implement social selling across national borders in an easy and efficient manner,” explains Dr Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE.

In the second half of 2023, the LR Group will also focus on product development and additional marketing and sales activities. The Business Days to be held in the various markets in September will be an important cornerstone in this effort as they are expected to attract a record number of participants. Moreover, the LR Group is currently preparing a new product launch to be carried out in the autumn of this year, thus systematically expanding its portfolio of high-quality health and care products.

The LR Group continues to see itself well positioned to further boost its business activities in the international markets. Looking ahead to the 2023 financial year, LR still expects sales to be at the prior-year level based on conservative assumptions and, despite the expected cost increases, predicts that EBITDA will either dip only slightly or remain stable compared to the prior-year level. Against the backdrop of the LR Group’s sustained strong performance, the company plans to start exploring corporate refinancing options in the second half of the year, including the Nordic bond maturing in February 2025.

The report on the first half of 2023 is available online from 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 32 countries. As an attractive social selling company, LR 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 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. LR has been firmly established in the market for over 35 years with around 1,200 employees and around 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: +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
 

Approval of Waiver Request relating to the guarantor accession of "LR RUS" by Nordic Trustee & Agency AB (publ) (the “Agent”) under the terms and conditions (the “Terms and Conditions”) for the EUR125,000,000 Senior secured floating rate bonds due 2025 (ISIN: NO0010894850) (the "Bonds")

Terms defined in the Terms and Conditions shall have the same meaning when used in this notice, unless otherwise defined herein.

According to clause 15.14(b)(i)(A) and (B) of the Terms and Conditions, Limited Liability Company “LR RUS”, Moscow, Russian Federation (“LR Rus”), a direct subsidiary of LR-International Beteiligungs GmbH, has been nominated a Material Group Company in the most recent Compliance Certificate delivered together with the related audited consolidated annual financial statements of the Group. Furthermore, according to clause 15.14(b)(ii) and subject to the Agreed Security Principles, LR Rus shall accede as a Guarantor to the Guarantee Agreement and of LR-International Beteiligungs GmbH shall grant first priority pledges over the shares in LR Rus (together, the “Guarantee Accession”).

On 21 July 2023, the expert legal counsel to the Agent has informed the Agent and the Issuer that (i) the share security as well as the Guarantee Accession seems to have limited value (or no value at all) at this moment (due to the circumstances in Russia) and (ii) that this exercise may potentially entail risks for certain stakeholder. It was also noted that the accession might affect the tradability of the Bonds. On the other hand, fee estimates of the various legal counsels involved in the process (including for purposes of obtaining regulatory approvals) add up to about EUR 150,000 or more and the regulatory filing will further require consistent involvement and resources of the management of LR Rus and its shareholders. 

According to Schedule 2 (Agreed Security Principles) any guarantees and security to be provided under the Finance Documents will only be given subject to and in accordance with the Agreed Security Principles. According to the Agreed Security Principles, a key factor in determining whether or not a guarantee or security will be taken is the applicable time and cost (including adverse effects on taxes, interest deductibility, stamp duty, registration taxes, notarial costs and all applicable legal fees) which shall not be disproportionate to the benefit accruing to the Agent and the Bondholders of obtaining such guarantee or security. Given that the guarantee and the security would have limited or even no value and further given the adverse effects on the interests of certain stakeholders, the Agent shares the Issuer's view that currently no Guarantee Accession is required according to the Terms and Conditions as long as the current legal and regulatory environment in the Russian Federation persists.

Therefore, the Agent has agreed to approve that:
(a) until receipt by the Issuer of a written notice from the Agent to the contrary, the Guarantee Accession shall be suspended;
(b) as long as the Guarantee Accession is suspended, LR Rus shall not be considered a Material Group Company for purposes of the Terms and Conditions; and 
(c) as long as the Guarantee Accession is suspended and subject to the paragraph below, the omission of the Guarantee Accession shall not constitute an Event of Default.

The Issuer shall (without having an obligation to actively monitor the legal and regulatory environment in the Russian Federation) inform the Agent without undue delay upon becoming aware of material changes to the legal and regulatory environment in the Russian Federation which would substantially increase the value of the Guarantee Accession and resolves the adverse effects on the interests of certain stakeholders. Once the Issuer has received a notice from the Agent in accordance with paragraph (a) above, the Guarantee Accession shall be implemented within the period initially provided for the Guarantee Accession of LR Rus (i.e. 120 Business Days) from the date of receipt of that notice.     

LR Group makes a successful start to financial year 2023

• Sales up by 5.1% to EUR 72.0 million in the first quarter  
• Normalized EBITDA of EUR 8.8 million in Q1 2023
• Improvements in production and logistics lay the foundation for future growth
• Forecast for full year 2023 confirmed 

Ahlen, 31 May 2023 – Today, LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, unveiled its figures for the first quarter of the 2023 financial year. According to the information released, the LR Group achieved sales (revenue from goods sold) of EUR 72.0 million as against EUR 68.6 million in the first quarter of the previous year. This corresponds to a 5.1% increase in sales in a year-on-year comparison. The strategic measures to promote career development for the company’s partners also bore fruit in the first quarter, allowing the LR Group to get off to a good start in 2023. 

The reported EBITDA amounted to EUR 7.9 million in the first three months of 2023, as against EUR 8.1 million in the same period of the previous year. In addition, normalized EBITDA came to EUR 8.8 million in the first quarter of 2023 compared to EUR 9.6 million in the first quarter of the previous year.  

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “In the first quarter of 2023, many partners showed successful career development, reaping the benefits of our top sellers such as the new and improved weight management programme LR LIFETAKT Body Mission. This year will see us continue to focus on helping partners get started through targeted qualification and bonus programmes such as Fast Track 5.0. These measures have made a key contribution to a very good start we have made to the 2023 financial year."

LR sets the course for future growth 

In a quest to further strengthen logistics for future growth and to optimise production processes, the LR Group recently invested, among other things, in a new packaging and palletising machine at its Ahlen site, which will boost production capacity for health products alone by 30%. The system, which meets state-of-the-art standards, automates the packaging process, allowing orders to be processed more quickly and efficiently. 

“The new packaging machine will put us in an even better position to meet the demand for our products. Likewise, the new logistics centre in Ahlen, which is scheduled to be commissioned next year, will help to speed up order processing significantly going forward. This lays the foundation to allow LR to be able to systematically exploit the attractive growth opportunities available to it. At the same time, we are setting the course for our further international expansion. We will start operating in the United Kingdom (UK) market on 1 August 2023. The final preparations for this move are in full swing”, explains Dr Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE. 

The LR Group is convinced that it remains in a strong position to drive business activities in international markets in 2023. Looking ahead to the 2023 financial year, LR still expects sales to be on a par with the previous year based on conservative assumptions and, despite the expected cost increases, predicts that EBITDA will either dip only slightly or remain stable.  

The report on the first quarter of 2023 is available online from 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 32 countries. As an attractive social selling company, LR 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 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. LR has been firmly established in the market for over 35 years with around 1,200 employees and around 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: +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

LR Group shows solid performance in the financial year 2022 and aims for international expansion

• Sales of EUR 269.4 million reflect positive sales trend in H2/2022 
• Normalized EBITDA of EUR 36.3 million in 2022 
• Positive business perspectives due to international expansion and successful new product launches of ZEITGARD PRO and LR LIFETAKT Body Mission
• Sales expected at previous year’s level and EBITDA is forecasted to remain stable or show a slight decrease in 2023  

Ahlen, 28 April 2023 – Today LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products announced their final figures for the 2022 financial year. According to this, the LR Group achieved sales (revenue from goods sold) of EUR 269.4 million (2021: EUR 296.2 million). In the second half of 2022, the strategic measures to promote the career development of the partners showed effect and contributed significantly to the positive sales trend in the third and fourth quarter. 

In the financial year 2022 the LR Group achieved a normalized EBITDA of EUR 36.3 million after EUR 41.7 million in the previous year. In 2022, the reported EBITDA reached EUR 31.3 million compared to the prior year’s level of EUR 36.8 million. The company has thus succeeded in exceeding the recently issued guidance for reported EBITDA ranging from EUR 24 million to EUR 30 million for the 2022 financial year.

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, commented: “In the 2022 financial year, many partners showed successful career development and took the opportunity to generate attractive additional income. As LR, we will continue to focus on the business opportunity to help partners get started through targeted qualification and bonus programmes such as Fast Track 5.0. We see that these measures will continue to create positive momentum in our partner community at the beginning of 2023.“

LR expands its international presence with market entry in the UK 

With regard to the initiatives in the current financial year Dr. Andreas Laabs (CEO) of LR Health & Beauty SE comments: “In the third quarter of 2023 we will start our business activities in the United Kingdom (UK) market and thus consistently continuing our international expansion. We plan to support our partners with numerous measures to take advantage of the positive market momentum and develop the UK growth market for LR. Previously, LR tapped into the Korean market in 2021 as the first country in Asia, where business activities have since performed well. This underpins the attractive growth opportunities for LR around the world. In addition to ongoing internationalisation, we are also investing in our existing markets in order to fully exploit market potential. In the course of this, we will further strengthen the cross-border activities of our partners.“

Outlook 2023

The LR Group considers itself well positioned to drive business activities in the international markets. As part of its strategic initiatives, LR will continue to focus on creating the right conditions for partners to successfully develop their careers in 2023. In addition, the LR Group continues to face challenging market conditions against the backdrop of the Russia-Ukraine war. For the 2023 financial year, LR expects, under conservative assumptions, sales at the previous year's level and, despite the expected cost increases, EBITDA to remain stable or only show a slight decrease.  

The Annual Report 2022 and a Sustainability Report for the year 2022, prepared for the first time, are available online from 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 32 countries. As an attractive social selling company, LR 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 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. LR has been firmly established in the market for over 35 years with around 1,200 employees and around 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: +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

LR kicks off Q1 2023 with sales growth and continues to drive international expansion with market entry in the UK

• Effective strategic initiatives put LR back on track for growth with 5% sales increase in Q1 2023 
• Market activities in the UK to commence in the third quarter of 2023 
• Favourable market conditions in the UK for social selling
• Cross-sponsoring promotes market access and career development of partners 

Ahlen, 24 April 2023 - LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, had a successful start to the financial year 2023. Based on preliminary figures, the LR Group increased sales in the first quarter of 2023 by 5% year-on-year (Q1 2022: EUR 68.6 million). The strategic realignment initiated in the summer of 2022 thus continues to have a positive effect and puts LR back on track for growth. Thus strengthened, LR will enter the UK market in the third quarter of 2023 in continuation of its international expansion. Including the market entry in the UK, the LR Group will be represented in 32 countries worldwide. The UK, with its four countries England, Wales, Scotland and Northern Ireland, has a population of around 70 million and offers favourable market conditions for the planned expansion of the business activities in Europe. 

Dr. Andreas Laabs, CEO of LR Health & Beauty SE, comments: “We’re pleased that the targeted promotion of our partners’ career development is paying off and that LR is back on track for growth in the first quarter of 2023. This gives us the momentum to drive the expansion into new markets. With our market entry in the UK, we’re taking the next step in opening up this attractive growth market for LR. Given the excellent market conditions and entrepreneurial culture, we see great opportunities in the UK for the distribution of our health and care products. At the same time, the market entry in the UK enables our partners to successfully grow their careers. On the back of our strong partner community as well as our high-quality products 'Made in Germany', we’re positive that LR will do very well here.” 

The business activities in the UK are managed from Germany, enabling LR to leverage its proven expertise from decades of experience in social selling. This is in line with LR’s strategy to increasingly rely on partner cross-sponsoring, which focuses on gaining new partners across countries. Numerous measures – such as individual starter packages or the Fast Track 5.0 bonus programme – help partners to tap into the UK market. Under the LR brand, the LR Group globally distributes around 200 high-quality health and care products, including food supplements, body care products and fragrances. Top sellers like the new ZEITGARD Pro device for innovative skin care provide additional momentum for LR partners expanding their activities in the UK. 
Further information on the business development as well as the full figures for the first quarter of the 2023 financial year will be published by LR at the end of May 2023.

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 32 countries. As an attractive social selling company, LR 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 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. LR has been firmly established in the market for over 35 years with around 1,200 employees and around 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 confirms positive sales trend in final quarter of 2022

• FY 2022 sales of EUR 269.4 million at upper end of guidance range
• Q4 2022 sales of EUR 72.8 million close to exceptionally high prior-year level
• Normalized EBITDA of EUR 36.2 million in 2022
• Management team expanded, additional momentum from new product launches ZEITGARD PRO and LR LIFETAKT Body Mission

Ahlen, February 28, 2023 - LR Global Holding GmbH, Europe’s leading digital social selling company in the area for high-quality health and care products, announces their figures for the fourth quarter of 2022 and the full year 2022. Following pleasing sales growth in the third quarter of 2022, LR Group managed to confirm the positive sales trend in the fourth quarter of 2022, despite continued challenges in the market environment in important target markets. This is reflected in Group sales of EUR 72.8 million, a mere 3.5 percent below the prior-year period in the record year of 2021 (Q4 2021: EUR 75.4 million). The strong performance was aided by ZEITGARD Pro, the most successful product launch in the history of the company.

In the full financial year, LR Group generated sales (revenue from goods sold) of EUR 269.4 million (preliminary figure). Despite the trend reversal in the second half of 2022, however, overall sales of the LR Group were still 9.1 percent below the exceptionally strong prior-year level (2021: EUR 296.2 million), which had benefited from positive effects resulting from the COVID-19 pandemic. 

In terms of earnings, LR Group achieved normalized EBITDA of EUR 36.3 million in financial year 2022 (preliminary figure), compared to EUR 41.7 million in the previous year. EBITDA reported amounted to EUR 31.3 million in FY 2022, compared to EUR 36.8 million in 2021. The company thus even managed to exceed its latest guidance range for EBITDA reported of EUR 24 million to EUR 30 million.

Valdemaras Gordinskis, LR Group’s Vice President Global Controlling and Investor Relations, comments: “Business has noticeably picked up again in the second half of the year, and LR succeeded in almost returning to the exceptionally strong sales level reached in the year before. Given the high uncertainty in the macroeconomic environment worldwide and the resulting uncertainty with regard to the future business development, LR had considered an adjustment of the financial covenants for the 2021/2025 bond issued by LR Global Holding in August. However, based on the strong performance in the third and fourth quarters, this is no longer deemed necessary at the moment.”

Added momentum from product range expansion

At the beginning of the year, LR launched its new product line Figu Active, which comprises nutritional supplements for a healthy and low-calorie diet. Dr Andreas Laabs, Chief Executive Officer of LR Health & Beauty SE, explains: “We are very well equipped for the current financial year. On the one hand, we have further expanded our management team and got Patrick Sostmann on board, a sales specialist with a proven track record  . And on the other hand, we managed to further expand our product range with two new products – LIFETAKT Body Mission with a new series of Figu Active products and, before that, ZEITGARD Pro for innovative facial care. This gives an additional boost to our LR Partners’ activities. The final quarter has shown again that many new LR Partners take this opportunity to generate additional income and build up their standard of living. Based on our strategic initiatives, we will continue to focus on establishing the right parameters for our partners to successfully develop their careers in 2023.”

The report for the fourth quarter of 2022 is available online from today on the company’s website at https://ir.lrworld.com/. The final, audited figures for financial year 2022 will be published at the end of April 2023, along with the annual report.

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 significantly boosts sales trend in the third quarter and moves closer to its record year in 2021

• Group sales of EUR 65.1 million in Q3 2022 and EUR 196.6 million in 9M 2022 
• Normalized EBITDA of EUR 22.4 million in 9M 2022
• ZEITGARD Pro, the best product launch in the company’s history, exerts positive impact on sales activities 
• Sales strategy even more strongly geared to LR partner income opportunities in times of falling real wages

Ahlen, November 30, 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 figures for the third quarter of 2022 and for the first nine months of the 2022 financial year. In the third quarter of 2022, the LR Group recorded a positive sales trend despite market conditions in important target markets remaining challenging, and gradually approached the previous year’s strong sales figures. This is reflected accordingly by the sales generated in the third quarter of 2022, which at EUR 65.1 million re-approached the level of the record 2021 year (previous year: EUR 67.7 million) and  thus was only 3.7 percent lower than in the same period of the previous year. This was especially due to the pleasing trend in the important home market of Germany. Overall, the LR Group achieved sales (revenue from goods sold) of EUR 196.6 million in the first nine months of 2022. This corresponds to a decrease of 11.0 percent compared with the exceptionally strong prior-year period (previous year: EUR 220.8 million), which was characterised by positive effects from the COVID-19 pandemic, particularly in the first two quarters. 

Furthermore, the LR Group achieved normalized EBITDA of EUR 22.4 million in the first nine months of 2022, compared with EUR 30.1 million in the same period of the previous year. In addition to the exceptionally strong revenue in the prior-year period, this reduction is also particularly due to non-recurring IT expenses arising from the implementation of a project to renew the ERP system and the eShop.

Dr. Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE, comments: “With the launch of ZEITGARD Pro for facial care in the third quarter of 2022, we enjoyed the most successful product launch in our company’s history to date. Most importantly, we see that our focus on our strategic actions and income opportunities for LR Partners is paying off in full given the current overall economic situation. Many new partners are taking advantage of the opportunity at LR to add a further source of income and thereby secure their standard of living. By further digitalising our processes and offerings, we are creating the conditions for the LR Group’s future growth and at the same time improving the overall framework for our partners to successfully develop their careers at LR.” 

Concentration on process improvements and greater focusing of the sales strategy on income opportunities

In the meantime, LR Group is continuing to create the conditions for the company’s sustained and successful development and growth. Construction of the new logistics centre with modern picking and shipping technology at the company’s site in Ahlen is progressing to schedule. As part of this project, LR will further automate and digitalise logistics processes so that orders can be processed even faster in the future. In addition to a further product launch planned for the first quarter of 2023, LR is also capitalising on the development potential of its partner network. With the new bonus program Fast Track 5.0, LR now provides even greater support for new sales partners’ career development. Under the motto “Do This – Get That”, salespeople can achieve a guaranteed bonus of up to EUR 30,000 per year for successful business generation.

Based on the financial results for the first nine months of 2022, LR Group is now specifying its sales guidance for the 2022 financial year at the upper end of the guidance range and now expects sales to lie in the range between EUR 265 million and EUR 270 million. The earnings guidance is also now being made more specific with EBITDA reported now expected in a range between EUR 24 million and EUR 30 million.

The report for the third quarter of 2022 is available online 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

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