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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.

LR Group achieves significant sales and earnings growth in 9M 2023  

• Q3 2023 sales of EUR 64.7 million almost on a par with the prior-year level 
• Q3 2023 normalized EBITDA of EUR 7.8 million significantly up on previous year 
• 9M 2023 sales increased to EUR 205.6 million and normalized EBITDA to EUR 25.4 million 
• Successful launch of Mind Master Gold 
• FY 2023 sales forecast raised to range of EUR 275 million to EUR 280 million; EBITDA forecast specified to range of EUR 28 million to EUR 32 million 

Ahlen, 30 November 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 third quarter of the 2023 financial year and the first nine months of 2023. The LR Group’s Q3 2023 sales (revenue from goods sold) of EUR 64.7 million (Q3 2022: EUR 65.1 million) were almost on a par with the prior-year level with only a marginal decrease of 0.6%. In the first nine months of 2023, the LR Group thus generated sales of EUR 205.6 million, compared to EUR 196.6 million in the same period of the previous year, which corresponds to 4.6% growth. The key success factors in the reporting period were continued activities to promote career development of LR partners and the expansion of the company’s innovative product range. 

The LR Group achieved a substantial 50.8% increase in EBITDA reported in the third quarter of 2023, bringing it to EUR 7.1 million, compared to EUR 4.7 million in the third quarter of the previous year. As a result, 9M 2023 EBITDA reported increased by 22.1% to EUR 22.6 million, compared to EUR 18.5 million in 9M 2022. Normalized EBITDA also increased significantly in Q3 2023 to EUR 7.8 million, compared to EUR 5.9 million in the third quarter of the previous year. In the first nine months of 2023, normalized EBITDA reached EUR 25.4 million (9M 2022: EUR 22.4 million). 

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “The results for the first nine months of 2023 clearly show that our strategic initiatives are bearing fruit, both in terms of sales and profits. During the summer months of this year, we supported the sales activities of our partners in selected markets with our ‘Crazy Summer’ campaign. And our innovative products also play a major role in driving the dynamic business development. The launch of our premium health product Mind Master Gold, for instance, has already generated strong demand for subscriptions.” 

Expansion of the innovative product portfolio 

The LR Group continues to demonstrate innovation and creativity in product development. With the launch of the vegan health product Mind Master Gold, LR has seamlessly built on previous successful product launches in recent company history. With the new products, LR is not only responding to current trends in health and mental wellbeing, but also developing closer customer relationships with an increased focus on subscription models. Mind Master Gold boasts a patented combination of active ingredients with vitamins D and K ‘Made in Germany’ and has been included in the reputable Kölner Liste®, which underlines the high quality of this product. 

“We are very happy with the market launch of Mind Master Gold and firmly believe that LR is well positioned for future growth with its business model and innovative products of the highest quality ‘Made in Germany’. The positive response from our partners confirms the high level of customer interest in our products as well as the long-term career opportunities of LR partners. Our growth model is also reflected in our international expansion. Cross-sponsoring of our partners in our new UK market across national borders is making great progress with many new partners taking the opportunity to break into this established direct sales market. The expansion is benefiting from our digital sales structures, which enable our partners to implement social selling campaigns easily and efficiently across national borders,” explains Dr. Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE. 

In the final quarter of the financial year, the LR Group will continue to focus on product development and the implementation of further sales activities. The company’s Business Days, which were held in several countries and attracted a record number of participants, have provided the LR Group with a further boost. Overall, the LR Group believes it is well positioned both for the rest of the year and in the long term to drive its business activities in international markets. LR is raising its sales forecast for the 2023 financial year and now expects sales in the range of EUR 275 million to EUR 280 million. In addition, the EBITDA forecast has been specified in the range of EUR 28 million to EUR 32 million. 

The report on the third 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 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