Statement 2013

The turnover of LR Health & Beauty increases by 3 percent to EUR 235 million

The international cosmetics and dietary supplement company, LR Health & Beauty records a successful financial year 2013. With a growth in turnover of three percent to a worldwide total of EUR 235 million, LR began 2014 with a very efficient profit development. The company sale to the finance syndicate Quadriga Capital and Bregal Capital, was a further positive signal for expansion, growth and investment.

“Despite the difficult market environment especially in Europe, LR has developed positively in 2013 and also set the course for future growth. For LR, future growth means consistent support of emerging markets such as Russia, Kazakhstan, France and Turkey and entering new markets for which LR is currently preparing. An example for this is the successful launch of the subsidiary in the Ukraine in 2013. Furthermore, we increasingly focus on online applications, e-commerce, social media and market development. This is accompanied by the extension of our product range and growth-oriented investments, e.g. in the employment of numerous employees and in advanced training. We also invest in the infrastructure required for this. For example, we just invested a sum of EUR 1 million in the new research and development centre at the German headquarters in Ahlen. All of these measures are part of a long-term growth offensive which we started together with our new investors in early 2013", summarised Dr. Jens M. Abend, CEO and Company Spokesman of LR. Germany remains the strongest domestic market of LR. Here, the company is the market leader in its segment. "We have to maintain and strengthen our position. In 2014, we will set further milestones and show strong commitment", emphasised Dr. Jens M. Abend.

Numerous marketing campaigns and product highlights

2013 was dominated by comprehensive national and international marketing campaigns: the highlight was the first global annual ball in Berlin, the "Global Leader Convention". LR was also able to engage the international top model Karolina Kurkova as "celebrity". Her new fragrance attracted special attention and already ranges among the top-selling products for women. The Brain & Body Performance Drink "Mind Master" is the uncontested highlight in the dietary supplement segment. After the launch of this market innovation in April 2013, more than one million bottles have been sold.

In the two core segments cosmetics and dietary supplements, the body care product range significantly contributed to an increase in the cosmetics segment with seven percent compared to the previous year; "LR Colours" recorded a plus of six percent. Aloe Vera drinking gels continue to be the top seller in the dietary supplement range. Aloe Vera remains the strongest brand in the care product range with an increase in turnover by ten percent vs. 2012.

Under the motto "More quality for your life“, the LR Group with headquarters in Ahlen/Westphalia produces and markets more than 600 health and beauty products in 28 countries. This includes body care and cosmetic products, perfumes and dietary supplements. In the fragrance segment, the company, which was founded in 1985, cooperates with celebrities such as Bruce Willis, Karolina Kurkova and Guido Maria Kretschmer. With more than 1,200 employees and thousands of registered sales partners and customers, LR is one of Europe’s leading direct sales enterprises. In Germany, LR products can be ordered 24/7 from the company's customer online shop. LR's strong market position is based above all on a high-quality product range and an attractive bonus and training plan which is unsurpassed in the industry. In 2009, LR established the LR Global Kids Fund which provides efficient and unbureaucratic support for deprived children and their families in many different countries around the world in cooperation with local institutions.