LR Group, the holding company for LR Health and Beauty, announced double-digit growth trends in sales and profitability in the first six months of 2021. Sales increased 14.3% over the same period of the previous year, reaching EUR 153.2 million. Adjusted EBITDA also significantly increased (15.8%) to EUR 22.7 million in the first half of the year.
“Despite the ongoing COVID-19 pandemic, we managed to confirm the growth trend shown at the beginning of the year in the second quarter, which is reflected in the significant increase in sales,” said Dr. Andreas Laabs, CFO and COO of LR Global Holding GmbH. “As a result, as of May 2021, we succeeded in exceeding the EUR 300 million sales mark for the first time on the basis of the last twelve months. We also successfully continued our strategic initiatives. Firstly, we continued to invest in our business model digitization in order to satisfy the growing demand from young target audiences. Already about a third of our new community members are now between 18 and 29 years old. Secondly, we made a step change in our international expansion with the successful market entry in South Korea in March 2021.”
LR’s recent relaunch of its Aloe Vera Sun Care product line saw sales increase by more than 50% in Q2 of 2021, compared to the same quarter of the previous year. In addition, the company’s new limited product line “LR meets Sansibar,” which launched in April, quickly sold out.
“Our natural, high-quality products are a key factor in our company’s success,” said Dr. Andreas Laabs. “This year, we once again demonstrated our innovative strength and received the TOP 100 Award, an award for the 100 most innovative, medium-sized companies in Germany. We plan to add a new product category to our product range by the end of this year. In view of the continuing tight situation on the procurement market, we will also pay close attention to the supply chain. Especially for our best-selling products, we have already increased our inventories accordingly at an early stage. We are well-equipped for the planned growth.”
The company says it is considering financing options to support the growth of the company, and that this expansion may include a stock exchange listing.