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LR Group off to a successful start in financial year 2021
 

• Group revenue in the first quarter of 2021 increased by around 15% to EUR 79.5 million
• Normalised EBITDA improved significantly to EUR 11.3 million
• Business activities in South Korea off to a good start after entering the market
• New LR Connect App supports digitalisation process in the LR Group
• Positive outlook for financial year 2021 confirmed

LR Global Holding GmbH, a leading digital social selling company in the field of high-quality health and care products, achieved significant growth in revenue and earnings in the first quarter of 2021 and thus continued on its dynamic growth course. In the first three months of 2021, the LR Group achieved revenue of EUR 79.5 million (previous year: EUR 69.0 million), a significant increase of 15.2% compared to the previous year. At the same time, normalised earnings before interest, taxes, depreciation and amortisation (EBITDA norm.) increased significantly from EUR 8.1 million to EUR 11.3 million. The considerable increase in earnings is essentially due to the strong growth in revenue at the beginning of the year. 

“After the record year 2020, we are very satisfied with the start to the current financial year 2021. In terms of sales, we were able to achieve the most successful quarter in LR’s company history and thus disproportionately increase our earnings compared to the first quarter of the previous year. Strong growth rates in some regions, such as the DACH region and France, contributed significantly to this. At the same time, we continued to work consistently on the digitalisation of our business model in order to expand our social selling platform and further improve the structures for sales. In times of the pandemic, our business model has proven to be extremely robust and we are experiencing growing popularity, especially among young target audiences,” commented Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH.

As a modern social selling partner, LR distributes over 300 products in the areas of health and beauty (nutritional supplements and cosmetics) via its partner community with currently more than 340,000 active sales partners and customers. The LR Group is currently active in 28 countries worldwide. The company entered the market in South Korea in March 2021. Business activities have started off well there and the LR Group is now present with selected health and beauty products. This step is in line with the strategy of continuing its international expansion and further expanding its market position in the Asian region.

Digitalisation process successfully progresses in 2021
 
“We took further important steps to develop LR into the leading digital social selling platform in the first quarter of 2021. One focus for the rest of the year will be the establishment of our new LR Connect app, which we will roll out internationally as we continue to digitalise our company. The app will provide our partners with the latest information on our products or enable them to take part in training measures. We will also pay special attention to our supply chain, which is facing challenges due to the pandemic. We have already been increasingly active in the procurement market and have increased our stocks accordingly. In view of the growth planned, we therefore see ourselves well equipped to meet the growing demand for our products,” said Dr. Andreas Laabs.

Based on the results for the first quarter, the management continues to expect a positive business development with stable growth for the current financial year 2021. The forecast is based on the assumption that the ongoing COVID-19 pandemic, the extent of which still cannot be fully assessed, will not have any significant impact on the LR Group’s business.

The report for the first quarter of 2021 is available online as of today on the company’s website at https://www.lrworld.com/investorrelations. 

LR Group
Under 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 between sales partners and customers 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. 

LR's goal is to improve people's well-being and health with its portfolio - consisting of care and decorative cosmetics, nutritional supplements and fragrances. 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 18 years. Only the valuable inside of the leaf is used for the products. In Ahlen, the company has established the most modern Aloe Vera production site for Aloe Vera Drinking Gels in Europe. In the fragrance segment, LR cooperates with national and international stars such as Guido Maria Kretschmer, Bruce Willis, Emma Heming-Willis and Cristina Ferreira. LR has been firmly established in the market for over 35 years with around 1,200 employees and thousands of registered sales partners. 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.

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://www.lrworld.com/investorrelations 

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 significant revenue and earnings growth in financial year 2020

• LR Group revenue rises by around 27% to EUR 285 million in 2020
• Normalised EBITDA up significantly to EUR 42.5 million
• Market entry in South Korea successfully completed in March 2021
• Positive outlook for financial year 2021

Ahlen, 30 April 2021 - LR Global Holding GmbH, a leading digital social selling company in the field of high-quality health and care products, published its annual report for 2020 today. According to the report, the LR Group was able to continue on its dynamic growth course in the past financial year despite the COVID-19 pandemic. For the full year 2020, the LR Group achieved record revenue of EUR 284.6 million (previous year: EUR 224.8 million), a significant increase of 26.7% compared to the previous year. At the same time, normalised earnings before interest, taxes, depreciation and amortisation (EBITDA normalised) increased from EUR 24.1 million to EUR 42.5 million. The considerable increase in earnings is essentially due to the extremely strong growth in revenue in 2020.

"We are very satisfied with how the business developed in 2020 and look back on by far the most successful year in the company's 35-year history. By posting record sales, we increased our earnings disproportionately compared to 2019. Furthermore, we succeeded in expanding our digital social selling platform and further improving our structures. It is also important to consistently continue the innovation process in order to take current market trends into account and ensure a sustainably filled product pipeline. We are constantly expanding our portfolio with new health and beauty products, such as Aloe Vera Immune Plus or LR 5in1 Beauty Elixir most recently," commented Dr Andreas Laabs, CFO and COO of LR Global Holding GmbH.

As a modern social selling partner, LR distributes over 300 products in the areas of health and beauty (nutritional supplements and cosmetics) via its partner community with currently more than 330,000 active sales partners and customers. The LR Group is active in 28 countries worldwide.

Positive outlook for financial year 2021

The management of the LR Group continues to expect a positive business development with stable growth for the current financial year 2021. The forecast is based on the assumption that the ongoing COVID-19 pandemic, the extent of which still cannot be fully assessed, will not have any significant impact on the LR Group's business.

"We have gotten off to a good start in financial year 2021 and will consistently continue our strategic initiatives to develop LR into the leading digital social selling platform. As LR, we are increasingly reaching out to young target audiences who can build an attractive supplementary income or livelihood. We also cater to the increasing health awareness in the population in an ideal way with our product range. Against the backdrop of the pandemic and the continuing challenging market environment, we replenished our stocks accordingly at an early stage in order to ensure the ability to supply our products with a view to the projected growth in sales. We are also placing a stronger focus on the Asian region as part of our international expansion. We launched our business in South Korea in March and are now present on the market there with a select range of health and beauty products," Laabs adds.

The complete 2020 Annual Report is available online as of today on the company's website at https://www.lrworld.com/investorrelations.

LR Group
Under 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 between sales partners and customers 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.

LR's goal is to improve people's well-being and health with its portfolio - consisting of care and decorative cosmetics, nutritional supplements and fragrances. 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 18 years. Only the valuable inside of the leaf is used for the products. In Ahlen, the company has established the most modern Aloe Vera production site for Aloe Vera Drinking Gels in Europe. In the fragrance segment, LR cooperates with national and international stars such as Guido Maria Kretschmer, Bruce Willis, Emma Heming-Willis and Cristina Ferreira. LR has been firmly established in the market for over 35 years with around 1,200 employees and thousands of registered sales partners. 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.

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
www.lrworld.com/investorrelations

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