LR Global Holding GmbH achieves sales and earnings growth in 2023 and aims to refinance its 2021/2025 bond ahead of time
EQS-News: LR Global Holding GmbH / Key word(s): Annual Results/Bond
LR Global Holding GmbH achieves sales and earnings growth in 2023 and aims to refinance its 2021/2025 bond ahead of time
13.02.2024 / 21:35 CET/CEST
The issuer is solely responsible for the content of this announcement.NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, CYPRUS, HONG KONG, ITALY, JAPAN, NEW ZEALAND, SOUTH AFRICA, THE UNITED KINGDOM OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD REQUIRE ANY FURTHER MEASURES FROM LR GLOBAL HOLDING GMBH, LR HEALTH & BEAUTY SE, PARETO SECURITIES AS, FRANKFURT BRANCH, ARCTIC SECURITIES AS OR ANY OTHER PARTY.
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*LR Global Holding GmbH achieves sales and earnings growth in 2023 and aims to refinance its 2021/2025 bond ahead of time*
· Consistent implementation of strategic measures since the LR Group entered the capital market is paying off: according to preliminary figures, the Company generated sales of EUR 276.5 million in line with its forecast and achieved EBITDA reported of EUR 31.5 million at the upper end of the forecast range
· Social Selling as a business model and the portfolio of innovative health and beauty products offer attractive growth potential
· Refinancing of 2021/2025 bond planned through issuance of a new senior secured bond with a volume of EUR 125 million by parent company LR Health & Beauty SE
Ahlen, 13 February 2024 – LR Global Holding GmbH (the “*Company*”), Europe’s leading digital social selling company in the area of high-quality health and beauty products, continued its successful business development in financial year 2023 and achieved its sales and earnings forecasts for 2023. According to preliminary figures, LR increased sales by around 3% year-over-year to EUR 276.5 million in 2023 (2022: EUR 269.4 million) despite negative currency effects, which is in line with its sales forecast range for 2023 of EUR 275.0 million to EUR 280.0 million. In addition, based on preliminary figures, the LR Group achieved EBITDA reported in 2023 of EUR 31.5 million (2022: EUR 31.3 million), thus reaching the upper end of its EBITDA forecast range of EUR 28 million to EUR 32 million. Normalized FY 2023 EBITDA amounted to EUR 35.5 million (2022: EUR 36.3 million).
"The initiatives implemented to promote the career development of our partners as well as the expansion of our innovative product portfolio made a significant contribution to the company’s success in the 2023 financial year. In 2024, we will continue to focus on our strategic measures to expand LR’s market position as the leading digital social selling company. We thus strive to further address megatrends such as health and the increasing importance of digital and flexible working models and provide our partners with the best possible support in successfully developing their careers,” says Dr Andreas Laabs, Chief Executive Officer (CEO) of LR Health & Beauty SE.
*Early repayment of the 2021/2025 bond in the event of a successful new issue *
Driven by an even stronger positioning in the market as well as sales and earnings growth in FY 2023, the Company intends to refinance its senior secured 2021/2025 bond, ISIN NO0010894850 (the *“Existing Bond”*) with a volume of EUR 125 million. For this purpose, the parent company LR Health & Beauty SE plans to issue a euro-denominated senior secured corporate bond (the *“New Bond”*) with a target volume of EUR 125 million. The final terms and conditions of the New Bond and the annual coupon are expected to be determined after completion of the bookbuilding process of the private placement and will be published together with further information in the event of a successful New Bond issue.
Dr Andreas Laabs explains: “Having issued our first corporate bond in 2021, we have since successfully established ourselves on the capital market. By issuing a New Bond, we now see the opportunity to continue to diversify our financing structure for the coming years and create the conditions for future growth. We are therefore seeking to refinance the Existing Bond by issuing a New Bond in the “Nordic Bond” format. In recent years, we have successfully driven the LR Group’s business performance based on the consistent digitalisation of our business model and the expansion of our range of innovative health and beauty products. Together with our strong partner community and financing partners, we strive to systematically continue this path.”
LR Health & Beauty SE plans to issue a New Bond as part of a private placement to institutional investors, primarily in Germany and other European countries. The New Bond is set to be issued in the so-called “Nordic Bond” format under Swedish law, with Nordic Trustee & Agency AB (publ) as trustee. The LR Group aims to list the New Bond on the Open Market of the Frankfurt Stock Exchange. In addition, it is intended that the New Bond will be listed at Nasdaq Stockholm within a period of twelve months. In accordance with the terms and conditions of the 2021/2025 Existing Bond, the Company intends to redeem the Existing Bond at a price of 101.45% of its principal amount (plus accrued but unpaid interest) following the successful issue of the New Bond.
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*LR Group*
Following the motto "More quality for your life" the LR Group with headquarters in Ahlen/Westphalia successfully produces and markets various high-quality health and beauty products in 32 countries. As an attractive social selling company, LR supports the personal exchange in its community with efficient, digital solutions. The holistic tool "LR neo" offers the international partnership all business-relevant key figures and information for their LR business in one dashboard.
LR has been firmly established on the market since 1985 as a "people business" company that focuses on people and personal advice. In times of changing working environments, the business model particularly appeals to those who are looking for more flexibility, a better work-life balance and greater financial independence.
The processing of Aloe Vera has been one of the core competencies of LR 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.
In autumn 2009, LR founded the LR Global Kids Fund e.V., which supports deprived children and their families in many countries around the world efficiently and unbureaucratically in cooperation with local institutions. For further information on our commitment to sustainability, please read our sustainability report.
LR currently has around 1,200 employees and hundreds of thousands of registered community members.
*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/
*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
*Important Note*
THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE US SECURITIES ACT. THEY MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. NO PUBLIC OFFERING WILL BE MADE IN THE UNITED STATES AND THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION TO BUY OR SUBSCRIBE FOR SECURITIES OF LR GLOBAL HOLDING GMBH AND/OR LR HEALTH & BEAUTY SE AND NO EXCHANGE OFFER IS BEING MADE IN THE UNITED STATES, AUSTRALIA, CANADA, CYPRUS, HONG KONG, ITALY, JAPAN, NEW ZEALAND, SOUTH AFRICA, THE UNITED KINGDOM OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION/SUCH OFFER WOULD REQUIRE ANY FURTHER MEASURES FROM LR GLOBAL HOLDING GMBH, LR HEALTH & BEAUTY SE, PARETO SECURITIES AS, FRANKFURT BRANCH, ARCTIC SECURITIES AS OR ANY OTHER PARTY OR BE PROHIBITED BY APPLICABLE LAW.
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13.02.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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Language: English
Company: LR Global Holding GmbH
Kruppstr. 55
59227 Ahlen
Germany
Phone: +49 238270600
E-mail: info@lrworld.com
Internet: www.lrworld.com
ISIN: NO0010894850
WKN: A3H3FM
Listed: Regulated Unofficial Market in Frankfurt; Stockholm
EQS News ID: 1836613
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