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LR Group grows significantly and successfully continues strategic initiatives aimed at future growth 

• Group sales increased by 7.1% to EUR 220.9 million in first nine months of 2021
• Normalised EBITDA at EUR 30.1 million
• LR Soul of Nature brand for essential oils successfully launched
• Foundation stone for new logistics centre to be laid this year
• Positive outlook for financial year 2021 confirmed 

Ahlen, 30 November 2021 – LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, has achieved significant sales growth in the first nine months of 2021 and thus continued on its dynamic growth course. In the first nine months of 2021, the LR Group achieved sales (merchandise revenue) of EUR 220.8 million, which equates to growth of 7.1% compared to sales of EUR 202.2 million in the same period of the previous year. The LR Group managed to increase its sales in all regions in the first nine months. In addition, normalised EBITDA for the first three quarters of 2021 amounted to EUR 30.1 million, compared to EUR 30.7 million in the same period of the previous year. 

“We successfully continued on our growth course in the first nine months of 2021. Nevertheless, it has become apparent that consumer behaviour has changed again this summer compared to the previous year in view of the advancing vaccination campaign and easing of restrictions by politicians. As expected, sales and earnings in the third quarter were lower than last year, after an exceptionally strong third quarter against the backdrop of the COVID-19 pandemic last year. All in all, we continued to develop very successfully even during the pandemic and are confident that we will even be able to achieve new record turnover in financial year 2021,” explained Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH. 

In the third quarter, the LR Group continued to focus on consistently pursuing its strategic initiatives and setting the course for sustainable successful company development. Before the end of this year, the already established LR Health & Beauty SE is to be established as the new parent company of the LR Group

in order to facilitate access to the capital market and promote future growth. In this context, the shareholder will transfer the shareholder loans as a contribution to the free capital reserve of LR Global Holding GmbH. As another strategic initiative, LR is continuously investing in the digitalisation of its business model to meet the growing demand among young target audiences. The rollout of the LR Connect app, which also went live in the Benelux countries in October, is progressing and will be completed at the beginning of 2022. The app will enable the community to access the latest information on the product range as well as marketing toolboxes for sales activation with the end consumer. 

New product category LR Soul of Nature successfully launched

Furthermore, the LR Group has expanded its portfolio of high-quality products. Fragrances have always been an integral and successful part of the product portfolio. Now, a new range of natural essential fragrance blends has been successfully launched under the LR Soul of Nature brand. The LR Soul of Nature product portfolio includes eight 100 percent natural essential oils and four aroma mood worlds with four to five care products each. In total, LR currently sells more than 300 products from the areas of health and beauty through its community of around 300,000 members.

“The new LR Soul of Nature product category underscores our expertise in fragrances and ideally complements our portfolio of natural health and care products. In order to be able to meet the demand for our products even better in the future, we will build a modern logistics centre with the latest picking and shipping technology at the Ahlen site. This will enable us to further automate logistics processes in order to process orders even faster in the future. We started construction work on the 3,000 square metre building in October with the symbolic ground-breaking ceremony,” said Dr. Andreas Laabs.

For the current financial year 2021, the management confirms the forecast published in the 2020 Annual Financial Report and continues to expect a slight increase in revenues. As LR increased its inventories at an early stage in view of the tense situation on the global procurement market, the company considers itself well prepared for the growth planned. In addition, based on the results for the first three quarters of 2021, management is concretising its earnings forecast and expects EBITDA (reported) in the corridor of EUR 33.0 million to EUR 37.0 million for 2021. In principle, the forecast remains unchanged under the assumption that the ongoing COVID-19 pandemic, the scope of which still cannot be fully assessed, will not have any significant impact on the LR Group’s business.

The report for the third quarter of 2021 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 around 28 countries. As a modern social selling platform, the company combines personal exchange in its community with efficient, digital solutions. This expertise is particularly evident in the “LR Connect” app developed by LR itself, which supports the community in building and developing its business. The community often acting as micro influencers is young, flexible and increasingly uses social media as a sales platform.

LR’s goal is to improve people’s well-being and health with its portfolio – consisting of nutritional supplements and personal care, health representing close to 65% and beauty 35% of our sales. That is why the company continuously develops new products – from the power of nature in combination with the latest scientific findings. 

The processing of Aloe Vera has been one of the core competencies of LR Health & Beauty for almost 20 years. Only the valuable inside of the leaf is used for the products. In Ahlen, the company has established one of the most modern Aloe Vera production sites for Aloe Vera Drinking Gels in Europe. LR has been firmly established in the market for over 35 years with around 1,200 employees and more than 300,000 registered community members. LR also established the LR Global Kids Fund e.V. which provides efficient and unbureaucratic support for deprived children and their families in many different countries around the world in cooperation with local institutions. The commitment to take responsibility in terms of ESG is part of LRs philosophy. Since 2020 LR started using FSC-certified paper, takes various measures to avoid plastic consumption and switched to green power. 

Your contacts:

PR contact: 
LR Global Holding    
Almut Kellermeyer     
Head of PR / Public Affairs    
Kruppstraße 55    
59227 Ahlen    
Phone: 02382 7060-106
E-mail: a.kellermeyer@LRworld.com
https://ir.lrworld.com/

IR contact: 
cometis AG
Thorben Burbach 
Unter den Eichen 7 | Gebäude D 
65195 Wiesbaden
Phone: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
E-mail: burbach@cometis.de
 

LR Group confirming its double-digit growth trends in sales and profitability in first half of 2021

• Group sales in the first half of 2021 rose by 14.3% to EUR 153.2 million
• Normalized EBITDA increased by 15.8% to EUR 22.7 million
• Strategic initiatives aimed at expanding the business successfully launched
• Positive outlook for financial year 2021 confirmed

Ahlen, 31 August 2021 - LR Global Holding GmbH, the leading European digitally-enabled social selling company in the area of high-quality health and beauty products, achieved outstanding growth in sales and normalized earnings before interests, taxes, depreciation and amortisation (EBITDA normalized) in the first six months of 2021 and thus continued on its dynamic growth course. The LR Group generated sales (i.e. sales from goods sold) of EUR 153.2 million in the first six months of 2021, representing a robust growth of 14.3% compared to the sales of EUR 134.0 million generated over the same period of the previous year. The LR Group achieved double-digit percentage growth in all regions in the second quarter. In addition, adjusted EBITDA significantly increased by 15.8% from EUR 19.6 million to EUR 22.7 million in the first half of the year, mainly driven by the outstanding sales growth over the same period. The higher growth percentage in normalized EBITDA compared to sales demonstrates the scalability and highly variable costs concept of the business model.

"Despite the ongoing COVID-19 pandemic, we managed to confirm the growth trend shown at the beginning of the year in the second quarter, which is reflected in the significant increase in sales. As a result, as of May 2021, we succeeded in exceeding the EUR 300 million sales mark for the first time on the basis of the last twelve months. We also successfully continued our strategic initiatives. Firstly, we continued to invest in our business model digitization in order to satisfy the growing demand from young target audiences. Already about a third of our new community members are now between 18 and 29 years old. Secondly, we made a step change in our international expansion with the successful market entry in South Korea in March 2021", commented Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH.

In this context, one focus in the current financial year is on completing the roll-out of the new LR Connect app as part of the continued digitization of the company. The app provides the community with the latest information on the product range as well as marketing toolboxes for end consumer sales activation. It also enables the community to have unlimited access to a large library of online trainings. Furthermore, as a third strategic initiative, LR is investing in the construction of a modern logistics centre with the latest picking and shipping technology at the site in Ahlen. This will enable LR to further automize its logistics processes so that orders can be processed even faster in the future.

High-quality product range selectively expanded in the first half of the year

LR currently markets over 300 products in the areas of health and beauty via its community of more than 300,000 members. The new limited product line "LR meets Sansibar" was launched in April 2021 and was already sold out within a short time. In addition, LR relaunched its Aloe Vera Sun Care products, which had an extremely positive impact on business as sales on this product range increased by more than 50% in the second quarter of 2021 compared to the same quarter of the previous year.

"Our natural, high-quality products are a key factor in our company's success. This year, we once again demonstrated our innovative strength and received the TOP 100 Award, an award for the 100 most innovative, medium-sized companies in Germany. We plan to add a new product category to our product range by the end of this year. In view of the continuing tight situation on the procurement market, we will also pay close attention to the supply chain. Especially for our best-selling products, we have already increased our inventories accordingly at an early stage. We are well-equipped for the planned growth," said Dr. Andreas Laabs.

For the current financial year 2021, the management confirms the forecast published in the 2020 Annual Financial Report and continues to expect EBITDA at the level of financial year 2020 with a slight increase in revenue. In general, the forecast remains unchanged under the assumption that the ongoing COVID-19 pandemic, the scope of which still cannot be fully assessed, will not have any significant effects on the LR Group's business.

In order to further support the strong growth of the company, LR Group is constantly considering various options for expanding its financing options, which may include a stock exchange listing.

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

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://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 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