LR Group confirms positive sales trend in final quarter of 2022

LR Group confirms positive sales trend in final quarter of 2022

• FY 2022 sales of EUR 269.4 million at upper end of guidance range
• Q4 2022 sales of EUR 72.8 million close to exceptionally high prior-year level
• Normalized EBITDA of EUR 36.2 million in 2022
• Management team expanded, additional momentum from new product launches ZEITGARD PRO and LR LIFETAKT Body Mission

Ahlen, February 28, 2023 - LR Global Holding GmbH, Europe’s leading digital social selling company in the area for high-quality health and care products, announces their figures for the fourth quarter of 2022 and the full year 2022. Following pleasing sales growth in the third quarter of 2022, LR Group managed to confirm the positive sales trend in the fourth quarter of 2022, despite continued challenges in the market environment in important target markets. This is reflected in Group sales of EUR 72.8 million, a mere 3.5 percent below the prior-year period in the record year of 2021 (Q4 2021: EUR 75.4 million). The strong performance was aided by ZEITGARD Pro, the most successful product launch in the history of the company.

In the full financial year, LR Group generated sales (revenue from goods sold) of EUR 269.4 million (preliminary figure). Despite the trend reversal in the second half of 2022, however, overall sales of the LR Group were still 9.1 percent below the exceptionally strong prior-year level (2021: EUR 296.2 million), which had benefited from positive effects resulting from the COVID-19 pandemic.

In terms of earnings, LR Group achieved normalized EBITDA of EUR 36.3 million in financial year 2022 (preliminary figure), compared to EUR 41.7 million in the previous year. EBITDA reported amounted to EUR 31.3 million in FY 2022, compared to EUR 36.8 million in 2021. The company thus even managed to exceed its latest guidance range for EBITDA reported of EUR 24 million to EUR 30 million.

Valdemaras Gordinskis, LR Group’s Vice President Global Controlling and Investor Relations, comments: “Business has noticeably picked up again in the second half of the year, and LR succeeded in almost returning to the exceptionally strong sales level reached in the year before. Given the high uncertainty in the macroeconomic environment worldwide and the resulting uncertainty with regard to the future business development, LR had considered an adjustment of the financial covenants for the 2021/2025 bond issued by LR Global Holding in August. However, based on the strong performance in the third and fourth quarters, this is no longer deemed necessary at the moment.”

Added momentum from product range expansion

At the beginning of the year, LR launched its new product line Figu Active, which comprises nutritional supplements for a healthy and low-calorie diet. Dr Andreas Laabs, Chief Executive Officer of LR Health & Beauty SE, explains: “We are very well equipped for the current financial year. On the one hand, we have further expanded our management team and got Patrick Sostmann on board, a sales specialist with a proven track record. And on the other hand, we managed to further expand our product range with two new products – LIFETAKT Body Mission with a new series of Figu Active products and, before that, ZEITGARD Pro for innovative facial care. This gives an additional boost to our LR Partners’ activities. The final quarter has shown again that many new LR Partners take this opportunity to generate additional income and build up their standard of living. Based on our strategic initiatives, we will continue to focus on establishing the right parameters for our partners to successfully develop their careers in 2023.”

The report for the fourth quarter of 2022 is available online from today on the company’s website at https://ir.lrworld.com/. The final, audited figures for financial year 2022 will be published at the end of April 2023, along with the annual report.


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