LR Group makes a successful start to financial year 2023

LR Group makes a successful start to financial year 2023

• Sales up by 5.1% to EUR 72.0 million in the first quarter 
• Normalized EBITDA of EUR 8.8 million in Q1 2023
• Improvements in production and logistics lay the foundation for future growth
• Forecast for full year 2023 confirmed

Ahlen, 31 May 2023 – Today, LR Global Holding GmbH, Europe’s leading digital social selling company in the area of high-quality health and care products, unveiled its figures for the first quarter of the 2023 financial year. According to the information released, the LR Group achieved sales (revenue from goods sold) of EUR 72.0 million as against EUR 68.6 million in the first quarter of the previous year. This corresponds to a 5.1% increase in sales in a year-on-year comparison. The strategic measures to promote career development for the company’s partners also bore fruit in the first quarter, allowing the LR Group to get off to a good start in 2023.

The reported EBITDA amounted to EUR 7.9 million in the first three months of 2023, as against EUR 8.1 million in the same period of the previous year. In addition, normalized EBITDA came to EUR 8.8 million in the first quarter of 2023 compared to EUR 9.6 million in the first quarter of the previous year. 

Valdemaras Gordinskis, Vice President Global Controlling and Investor Relations of the LR Group, comments: “In the first quarter of 2023, many partners showed successful career development, reaping the benefits of our top sellers such as the new and improved weight management programme LR LIFETAKT Body Mission. This year will see us continue to focus on helping partners get started through targeted qualification and bonus programmes such as Fast Track 5.0. These measures have made a key contribution to a very good start we have made to the 2023 financial year.”

LR sets the course for future growth

In a quest to further strengthen logistics for future growth and to optimise production processes, the LR Group recently invested, among other things, in a new packaging and palletising machine at its Ahlen site, which will boost production capacity for health products alone by 30%. The system, which meets state-of-the-art standards, automates the packaging process, allowing orders to be processed more quickly and efficiently.

“The new packaging machine will put us in an even better position to meet the demand for our products. Likewise, the new logistics centre in Ahlen, which is scheduled to be commissioned next year, will help to speed up order processing significantly going forward. This lays the foundation to allow LR to be able to systematically exploit the attractive growth opportunities available to it. At the same time, we are setting the course for our further international expansion. We will start operating in the United Kingdom (UK) market on 1 August 2023. The final preparations for this move are in full swing”, explains Dr Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE.

The LR Group is convinced that it remains in a strong position to drive business activities in international markets in 2023. Looking ahead to the 2023 financial year, LR still expects sales to be on a par with the previous year based on conservative assumptions and, despite the expected cost increases, predicts that EBITDA will either dip only slightly or remain stable. 

The report on the first 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.


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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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