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Review 2014: LR Health & Beauty Systems Focuses on a Long-Term Growth Strategy

LR Health & Beauty Systems GmbH (LR), one of the leading suppliers of premium health and beauty products in direct sales, looks back on a successful 2014 with good results.

International markets: Significant growth in local currency, strong impact of currency effects

In view of the positive development in 2014, Patrick Sostmann, Spokesman of Board of LR, sees a lot of good signs for the future. "In 2014, LR was again able to sustain its growth in local currency and recorded a significant increase in sales at constant foreign exchange rates. Negative currency effects unfortunately had an adverse impact on some growth markets (e.g. Russia, the Czech Republic and Turkey) leading to a sales volume of EUR 228 million. We saw very pleasing developments (for example in France, Portugal and Poland), however, so that all in all, we can be highly satisfied with the international results", said Sostmann. LR continues to focus on a long-term growth strategy and an international orientation of the company. "With the intensification of our international activities, we will have to face external factors ahead of us with strong internal potential, more flexibility and higher efficiency. In everything we do, we can trust on the support of our approx. 1,100 highly motivated and qualified employees," added Patrick Sostmann.

Modernisation of the sales concept and strengthening of the brand

In summer 2014, LR extended its sales concept by the new customer group of "premium customers", thereby setting new standards in the German direct sales industry.

At the same time, the company launched its online shop (shop.LRworld.com) in Germany and Austria so that not only sales partners but end customers as well can now purchase products online. State-of-the-art web technologies and a modern shop design enable LR to offer completely different contents to independent LR sales partners and end customers. In order to raise greater awareness of the brand in public, the company also embarked on a new path with its brand communication. The company motto "More quality for your life." reflects a product-based commitment to performance and, at the same time, a fundamental component of LR's business model. In short: high-quality beauty and health products on the one hand and an improvement of the standard of living thanks to the income opportunities in direct sales on the other hand.

Investment “Made in Germany”: New bottling plant in Ahlen

LR made significant investments at the Ahlen site last year, including the installation of a new bottling plant. In this vein, LR demonstrates a clear commitment to its German production site and the quality claim "Made in Germany". The new plant is equipped with state-of-the-art technology, enables rapid modifications and ensures best possible quality.

Social responsibility: LR supports children from socially deprived families

In 2014, LR again donated more than EUR 130,000 to the independent association LR Global Kids Fund (LRGKF) in order to contribute to a more promising future for socially deprived children. Moreover, LR made available the infrastructure and the personnel for the aid organisation. The Ahlen-based company has been supporting the association since its foundation in 2009, thereby assuming social responsibility in its global markets.

Perspectives: 30th anniversary in 2015 with an innovative product category and new celebrities

In 2015, the company celebrates its 30th anniversary and presents its sales partners and customers an extraordinary year marked by innovative activities. A special highlight is the cooperation with Guido Maria Kretschmer. LR has succeeded in winning over the most popular German fashion designer and TV star as cooperation partner. The creation of an exclusive fragrance will soon set the scene for a cooperation spanning several years. In addition, LR will establish a new product category in the care and anti-aging segment. "Our objective is to continuously develop LR as a strong brand. Our promise "More quality for your life." is our daily motivation for achieving our goals. For 2015, we have targeted a sales growth of 5%," said Patrick Sostmann with optimism regarding the future.

LR Health & Beauty Systems GmbH

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 1,100 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.

Kruppstraße 55 · D-59227 Ahlen LRworld.com · facebook.com/LRworld · twitter.com/LRworld

Contact:

LR Health & Beauty Systems GmbH
Almut Kellermeyer | Head of PR/Public Affairs
Telefon +49 (0) 2382 7060-106
Telefax +49 (0) 2382 7060-179
E-Mail: a.kellermeyer@LRworld.com

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