Industry News
November 2010
LR Health & Beauty Systems increases turnover by 17 per cent in the first half of 2010
LR Health & Beauty Systems GmbH, one of Germany’s leading network marketing enterprises for health and beauty products, further expanded its sales in the first half year of 2010. In comparison to the first half of the previous year, net sales rose by 17 per cent to approximately EUR 116 million, representing calculated external sales of EUR 193 million. In the first six months of the year, LR made investments amounting to EUR 2 million. Expansion abroad continued to make progress, particularly the markets outside of Germany, which significantly contributed to the positive overall development, with an increase in sales of more than 30 per cent.
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Dr Jens Abend, CEO of LR Health & Beauty Systems, said: “The results achieved in the first half year 2010 have met our expectations. For its 25th anniversary, LR is further developing its strategic position in Germany and in international markets. We invest in our home location Ahlen, Germany, as well as in foreign subsidiaries and continue to recruit employees. The market potential has not yet been fully exploited, especially abroad. We will continue our expansion policy in the coming year by launching our business in Russia.”
Expansion investments at the Ahlen, Germany, location
With the launch of the new logistics centre in May, LR Health & Beauty Systems GmbH has developed operations ready to support planned growth in 30 countries worldwide. The processing hall is among the largest commercial premises in Ahlen (NRW), comprising a floor space of approximately 8,500 square metres. “Every year we dispatch a total of approximately 10,000 pallets with LR products from the logistics centre. Together with our existing logistics areas, a total of 12,000 square metres is now available,” explained Dr Jens Abend. “Our company dispatches more than 2 million parcels per annum from its headquarters to its sales partners and is therefore an important client of the DHL Logistics Group. The entrance of the headquarters building has been redesigned and an additional office complex built. There is also a new nail varnish filling machine now operational in the production area.”
Successful sales activities and innovative products aimed at increasing growth
The comprehensive product range is expanding successfully in the dietary supplements, cosmetics and fragrance segments. Decorative cosmetics, ranging from lipstick to mascara, recorded growth of 106 per cent. There is a strong demand for Probiotic 12 and Vita Aktiv in the dietary supplement segment. Aloe Vera Drinking Gels also still top the consumers’ wish lists. Turnover via sales of ‘star fragrances’ from the LR Celebrity Collection rose by 37 per cent. In June, an exclusive cooperation with international film star Bruce Willis was announced. This new fragrance and skin care set consists of Eau de Parfum, Hair & Body Wash, Deodorant spray and After Shave Balm, and has been on the market since July. Dr Jens Abend said, “The first sales results are very positive and promise an additional upswing in growth; and one thing is already clear: the Bruce Willis fragrance is the most successful launch in LR’s fragrance range!
“The commitment of our sales partners and the optimised marketing concept are the main reasons for the growth in sales in the first half year,” he added.
