LR Group shows solid performance in the financial year 2022 and aims for international expansion

LR Group shows solid performance in the financial year 2022 and aims for international expansion

• Sales of EUR 269.4 million reflect positive sales trend in H2/2022
• Normalized EBITDA of EUR 36.3 million in 2022
• Positive business perspectives due to international expansion and successful new product launches of ZEITGARD PRO and LR LIFETAKT Body Mission
• Sales expected at previous year’s level and EBITDA is forecasted to remain stable or show a slight decrease in 2023  

Ahlen, 28 April 2023 – Today LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products announced their final figures for the 2022 financial year. According to this, the LR Group achieved sales (revenue from goods sold) of EUR 269.4 million (2021: EUR 296.2 million). In the second half of 2022, the strategic measures to promote the career development of the partners showed effect and contributed significantly to the positive sales trend in the third and fourth quarter.

In the financial year 2022 the LR Group achieved a normalized EBITDA of EUR 36.3 million after EUR 41.7 million in the previous year. In 2022, the reported EBITDA reached EUR 31.3 million compared to the prior year’s level of EUR 36.8 million. The company has thus succeeded in exceeding the recently issued guidance for reported EBITDA ranging from EUR 24 million to EUR 30 million for the 2022 financial year.

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, commented: “In the 2022 financial year, many partners showed successful career development and took the opportunity to generate attractive additional income. As LR, we will continue to focus on the business opportunity to help partners get started through targeted qualification and bonus programmes such as Fast Track 5.0. We see that these measures will continue to create positive momentum in our partner community at the beginning of 2023.“ 

LR expands its international presence with market entry in the UK

With regard to the initiatives in the current financial year Dr. Andreas Laabs (CEO) of LR Health & Beauty SE comments: “In the third quarter of 2023 we will start our business activities in the United Kingdom (UK) market and thus consistently continuing our international expansion. We plan to support our partners with numerous measures to take advantage of the positive market momentum and develop the UK growth market for LR. Previously, LR tapped into the Korean market in 2021 as the first country in Asia, where business activities have since performed well. This underpins the attractive growth opportunities for LR around the world. In addition to ongoing internationalisation, we are also investing in our existing markets in order to fully exploit market potential. In the course of this, we will further strengthen the cross-border activities of our partners.“

Outlook 2023

The LR Group considers itself well positioned to drive business activities in the international markets. As part of its strategic initiatives, LR will continue to focus on creating the right conditions for partners to successfully develop their careers in 2023. In addition, the LR Group continues to face challenging market conditions against the backdrop of the Russia-Ukraine war. For the 2023 financial year, LR expects, under conservative assumptions, sales at the previous year's level and, despite the expected cost increases, EBITDA to remain stable or only show a slight decrease.

The Annual Report 2022 and a Sustainability Report for the year 2022, prepared for the first time, are 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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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/

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