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LR Health & Beauty SE further increases growth trend in the third quarter 

• Sales significantly increased by 7.2% to EUR 69.4 million in the third quarter of 2024
• In Q3 2024 EBITDA reported rose to EUR 7.3 million and normalized EBITDA increased to EUR 8.7 million
• Successful market launch of LR ZEITGARD Signature and realignment of the career plan increased the number of new distributors and led to higher sales
• Adjusted guidance for 2024: Sales range of EUR 288 million to EUR 292 million, EBITDA reported in the corridor of EUR 26 million to EUR 29 million

Ahlen, 26 November 2024 – LR Health & Beauty SE, Europe’s leading digital social commerce company in the area of high-quality nutritional supplements and cosmetic products, today published its figures for the third quarter of 2024 and the first nine months of 2024. Despite the challenging market environment, LR Health & Beauty SE increased sales (revenue from goods sold) by 7.2% to EUR 69.4 million in the third quarter of 2024 (Q3 2023: EUR 64.7 million). This resulted in sales for the first nine months of 2024 of EUR 212.7 million compared to EUR 205.6 million in the previous year, an increase of 3.4%. The recent market launch of the cosmetic product range LR ZEITGARD Signature and the realignment of the career plan for distributors made a major contribution to sales growth. 

On top of that, EBITDA reported increased in the third quarter of 2024 to EUR 7.3 million compared to EUR 7.1 million in the third quarter of the previous year. As a result, EBITDA reported in the first nine months of 2024 totaled EUR 19.0 million compared to EUR 22.4 million in the prior year period. Normalized EBITDA increased sharply from EUR 7.7 million in the third quarter of the previous year to EUR 8.7 million in the third quarter of 2024, resulting in a figure for the first nine months of EUR 23.1 million (9M 2023: EUR 25.2 million).  

Dr. Andreas Laabs, CEO of LR Health & Beauty SE, comments: "With the introduction of the new LR ZEITGARD Signature product category, we have achieved one of the most successful product launches in LR's history and seamlessly continued our journey of successful market launches of the recent past. In addition, we have further improved the attractiveness of our business model for distributors by realigning our career plan. We are currently experiencing a decent influx of new distributors and a significant increase in the number of successful careers. Accordingly, we are looking forward to continuing to grow significantly in 2024 and believe we are ideally positioned for an even more successful 2025.“

Based on the business results for the first nine months of 2024 and the realignment of the career plan for distributors in the third quarter of 2024, LR Health & Beauty SE is adjusting its forecast for sales and EBITDA reported for the full year 2024. LR Health & Beauty SE is increasing the sales guidance for the 2024 financial year and now expects a sales corridor of EUR 288 million to EUR 292 million. Management originally assumed that sales (revenue from goods sold) would be at the previous year's level (2023: EUR 276.5 million). The company is also adjusting its earnings expectations for 2024 and revising its forecast for EBITDA reported to be in the range of EUR 26 million to EUR 29 million. Originally, management expected a slightly lower to stable EBITDA figure year-on-year (2023: EUR 31.4 million). The underlying reason is that the realignment of the career plan for distributors in the third and fourth quarters of 2024 will lead to a significant increase in distributors, which will have a positive impact on sales development. At the same time, the result is burdened by refinancing costs incurred and, above all, by one-off, extraordinary effects in the low single-digit million euro range due to changes to the distributors' career plan.   

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of LR Health & Beauty SE, explains: “With the realignment of the career plan, we have set an important course for sustainable profitable growth. This is likely to result in one-off, extraordinary effects in the fourth quarter, which will have a negative impact on earnings. However, in the financial year 2025 this will yield positive effects on sales and profitability.“ 

With the new logistics centre at the Ahlen site, which was put into operation in October 2024, LR sets the course for future growth. A state-of-the-art warehouse system will ensure efficiency gains and improve scaling possibilities.

The full report for the first nine months of the financial year 2024 is available online from today on the company website at https://ir.lrworld.com/. 

* As issuer of the New Bond 2024/2028, LR Health & Beauty SE publishes the figures for the third quarter and the first nine months of financial year 2024 and for the relevant periods in the previous year. The previous year’s figures for 2023 may differ from the figures for 2023 published previously by LR Global Holding GmbH. 

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 nutritional supplements and cosmetic products in 32 countries. As an attractive social commerce 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 Health & Beauty SE  
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 

LR Health & Beauty SE confirms growth trend in the second quarter of 2024

• Sales increased to EUR 143.3 million in the first half of 2024
• Normalized EBITDA of EUR 14.4 million
• Rising demand for subscription concepts like the successful LR Health Mission 
• Growth prospects strengthened by innovative product range and planned launch of a new product segment in September

Ahlen, 30 August 2024 – LR Health & Beauty SE, Europe’s leading digital social commerce company in the area of high-quality health and beauty products, today published its figures for the second quarter of 2024 and the first half of 2024. In the second quarter of financial year 2024, LR Health & Beauty SE managed to increase sales (revenue from goods sold) by 2.6% to EUR 70.7 million (Q2 2023*: EUR 68.9 million). In the first half of the year, LR Health & Beauty SE thus generated sales of EUR 143.3 million (H1 2023*: EUR 140.9 million). New product launches, such as the LR Health Mission and the LR Body Mission, contributed significantly to the positive sales performance during the period.

Furthermore, LR Health & Beauty SE generated a normalized EBITDA of EUR 14.4 million in the first six months of financial year 2024, compared to EUR 17.5 million in the same period of the previous year*. The earnings performance was impacted by factors such as refinancing costs related to the early redemption of the old bond of LR Global Holding GmbH and the issuance of a New Bond by LR Health & Beauty SE, as well as negative currency effects. EBITDA reported amounted to EUR 11.7 million in the first half of 2024, compared to EUR 15.4 million in the same period of the previous year*.

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “The LR Group’s business development has been very robust in the first half of the year and we have managed to achieve growth despite general consumer reticence in all of our regions. We are also pleased to see that our subscription concepts attract increasing interest. This is evidenced, for example, by the strong demand for the LR Health Mission with its novel product range. With this subscription, we offer those interested a 6 months treatment for the intestinal, liver and cellular metabolism, providing a comprehensive solution for personal health support.”

Future growth driven by digitization and IT expansion

LR Health & Beauty SE’s CEO Dr Andreas Laabs explains: “We will continue to consistently execute our corporate strategy in the second half of the year. In particular, we will drive our initiatives to optimize our marketing activities and our partner programs. At the same time, expanding our innovative product range remains high on our agenda. A new product segment is planned to be launched at the LR Business Day event with our partners in September. We are confident that the new products will be an ideal addition to our range and will open up new and attractive opportunities for our partners.”

Another important pillar for future growth is the continued digitization and expansion of the IT landscape. For this purpose, the LR Group will establish a new IT hub in Athens in order to provide high-quality IT services in-house and to develop and operate suitable business applications for social commerce.

LR Health & Beauty SE expects that it will continue to be in a position to capitalize on growth opportunities in the health and beauty markets. At the same time, the LR Group continues to face a challenging market environment and ongoing consumer reticence. Based on conservative assumptions, LR continues to expect sales at the previous year’s level and an only slightly lower or stable EBITDA for the 2024 financial year.

The full report for the first half of financial year 2024 is available online from today on the company website at https://ir.lrworld.com/. 
  

*As issuer of the New Bond 2024/2028, LR Health & Beauty SE publishes the figures for the second quarter and the first half of financial year 2024 and for the relevant periods in the previous year. The previous year’s figures for 2023 may differ from the figures for 2023 published previously by LR Global Holding GmbH.

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 nutritional supplements and cosmetic products in 32 countries. As an attractive social commerce 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 Health & Beauty SE  
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 Health & Beauty SE delivers good start into the 2024 financial year

• Sales of EUR 72.6 million in the first quarter of 2024
• Normalised EBITDA of EUR 7.8 million
• Focus on further expansion of innovative product range
• Digital initiatives progressing successfully

Ahlen, 28 May 2024 – LR Health & Beauty SE, Europe’s leading digital social selling company in the area of high-quality health and beauty products, today published its figures for the first quarter of 2024, according to which LR Health & Beauty SE generated sales (revenue from goods sold) of EUR 72.6 million (2022*: EUR 72.0 million). Despite unfavourable currency effects, the company thus achieved a slight increase in sales of around 0.8% compared to the first quarter of the previous year. 

In terms of earnings, LR Health & Beauty SE generated normalised EBITDA of EUR 7.8 million in the first three months of 2024, compared to EUR 8.7 million in the same period of the previous year. Earnings were impacted by the refinancing costs associated with the early redemption of the old bond of LR Global Holding GmbH and the issue of the new bond of LR Health & Beauty SE. EBITDA reported in the first quarter of 2024 was EUR 6.1 million, compared to EUR 7.8 million in the first quarter of 2023.

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “All in all, LR has made a good start into the year 2024 and has achieved a sound performance in the important markets of Western and Eastern Europe. New product launches from previous periods, in particular the innovative BODY MISSION, made a significant contribution to growth in the first quarter. The success of our latest product launches once again validates our strategy.”

Integrating AI to streamline social selling processes

Dr Andreas Laabs, CEO of LR Health & Beauty SE, explains: “In 2024, we will continue to focus on the further digitalisation of our company and the use of innovative technologies to further optimise our business processes. We also strive to provide our partners with the best possible sales support through new product innovations. Our pipeline for this year includes both new products and seasonal sales promotions such as ‘Crazy Summer’. We’re also preparing the launch of a new product segment for the autumn of 2024, which will perfectly complement our product offering.”

LR is placing great focus on the further digitalisation of its business processes. For example, through the Group’s digital platform LR neo, partners can now access a wide range of information relevant to their sales activities. The company has also developed its own chatbot: “LR-Vera” is designed to support efficient customer service. The chatbot enables customer service centre staff to access a centralised knowledge pool that facilitates quick and comprehensive answers.

Outlook 2024

LR Health & Beauty SE expects that it will continue to capitalise on the growth opportunities in the Health & Beauty segments and sees this confirmed by a further increase in momentum in the second quarter of the year. Based on conservative assumptions, LR continues to expect sales at the previous year’s level and an only slightly lower or stable EBITDA for the 2024 financial year.

The full report for the first quarter of 2024 is available online from today on the company website at https://ir.lrworld.com/ 

*As issuer of the New Bond 2024/2028, LR Health & Beauty SE discloses the figures for the first quarter of 2024 and for the first quarter of the previous year 2023. The previous year’s figures for 2023 may differ from the figures for 2023 disclosed previously by LR Global Holding GmbH.

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 Health & Beauty SE 
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 Health & Beauty SE reports a successful 2023 financial year and expands its innovative product range

• Sales increase to EUR 276.5 million; EBITDA reported reaches EUR 31.4 million
• Digitalisation and sales activities promote partners’ career development
• Expansion of innovative product range provides for positive business outlook

Ahlen, 30 April 2024 – LR Health & Beauty SE, Europe’s leading digital social selling company in the area of high-quality health and beauty products, today announced its final figures for the 2023 financial year. Accordingly, LR Health & Beauty SE generated sales (revenue from goods sold) of EUR 276.5 million (2022*: EUR 269.4 million). This meant that the company achieved a slight increase in sales of around 3% year-over-year despite negative currency effects. 

Furthermore, LR Health & Beauty SE achieved a normalized EBITDA of EUR 35.4 million in the 2023 financial year, compared to EUR 36.0 million in the previous year. EBITDA reported increased to EUR 31.4 million in 2023 compared to the previous year’s figure of EUR 31.1 million.

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “2023 was a very strong year for LR. We were able to drive forward our strategic initiatives, and many partners saw successful career developments. With BODY MISSION and Mind Master Gold, we managed to achieve two of the three best product launches in the history of our company. Especially Mind Master Gold, a vegan health product, which is available for subscription, has been very well received by the community and has given our sales an extra boost.”

Expanding the innovative product range  

In the current financial year, LR continues to consistently implement its corporate strategy. This includes a further digitalisation of business processes. With the LR neo sales platform, the company has established a centralised platform for partners to make their business processes more efficient and better tailored to their needs. Since April 2024, the information available on this platform has been further expanded.  

As Dr. Andreas Laabs, CEO of LR Health & Beauty SE, explains, the company is also focusing on expanding its innovative product portfolio: “We have started well into the 2024 financial year and strive to give additional impulses to our partners’ activities by launching even more innovative products. With our LR Health Mission, we offer a 6 month treatment for the intestinal, liver and cellular metabolism, providing a holistic solution for health support. In April 2024, we have launched two additional products that ideally complement this cure.”

Outlook 2024

LR Health & Beauty SE is generally well-positioned to address the attractive growth opportunities in the health & beauty market. Given the high level of uncertainty in the market environment, LR expects sales to remain at last year’s level in FY 2024 despite the good start to the year, and a slightly lower or stable EBITDA, based on conservative assumptions.

The complete 2023 Annual Report is available online from today on the company website at https://ir.lrworld.com/. Please also refer to our website for the Sustainability Report 2023, which provides information on our current initiatives such as the commissioning of a new photovoltaic system at the Ahlen site.

*As issuer of the New Bond 2024/2028, LR Health & Beauty SE discloses the final figures for the 2023 financial year and for the previous year 2022. The previous year’s figures for 2022 may differ from the figures for 2022 disclosed previously by LR Global Holding GmbH.

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 Health & Beauty SE 
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 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
 

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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.