LR Group achieves significant sales and earnings growth in 9M 2023
EQS-News: LR Global Holding GmbH / Key word(s): Quarter Results
LR Group achieves significant sales and earnings growth in 9M 2023
30.11.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.*LR ***G*roup 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
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Language: English
Company: LR Global Holding GmbH
Kruppstr. 55
59227 Ahlen
Germany
Phone: +49 238270600
E-mail: info@lrworld.com
Internet: www.lrworld.com
ISIN: NO0010894850
WKN: A3H3FM
Listed: Regulated Unofficial Market in Frankfurt; Stockholm
EQS News ID: 1784849
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