LR Global Holding GmbH, the social selling parent company for direct selling organization LR Health & Beauty, reported a 4% year-over-year increase in group sales in fiscal 2021, bringing total group sales to EUR 296.2 million. Fourth quarter sales reached EUR 75.5 million, a near-record result for the company.
EBITDA for 2021 was up over the previous year to EUR 41.6 million and the company met its fiscal 2021 guidance.
“We successfully continued our positive business development in 2021 and achieved new record sales despite the challenging market conditions,” said Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH. “Thanks to the early restocking of our inventories, we were able to meet the demand for our products in the final quarter as usual. Christmas business was very good overall and also raised more than EUR 105,000 for the LR Global Kids Fund as part of our charity commitment. Nevertheless, at the beginning of 2022, we see a continued tense situation on the global procurement market and the trend of rising costs for raw materials and energy. In the course of strict cost and resource management, we will focus our attention on maneuvering the LR Group through these difficult waters in the best possible way.”
LR Group began its efforts to tap into the Asian market in 2021 with a launch in South Korea, and also expanded its product categories with new fragrance blends and a new fitness brand.
“In the year under review, we made further progress in creating the structures for the future growth of the LR Group and strengthening our capital market capability,” said Dr. Laabs. “On the one hand, LR Health & Beauty SE was established as the new parent company of the LR Group. Secondly, the shareholder transferred the shareholder loans as a contribution to the free capital reserve of LR Global Holding GmbH in November. As a result of this reclassification, the equity capitalization has improved significantly as of the reporting date.”
