LR Group achieves substantial sales and earnings growth in Q2 2023

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.


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E-mail: a.kellermeyer@LRworld.com
https://ir.lrworld.com/

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