EQS News: Half-year report: Einhell continues on growth path | 22.08.24

Half-year report: Einhell continues on growth path

Landau ad Isar, August 22, 2024 – The Einhell Group has succeeded in significantly increasing its turnover by EUR 100 million in the first half of the 2024 financial year. 525.9 million to EUR 576.2 million, thus continuing its growth strategy unabated in a difficult macroeconomic environment. The main growth driver is the successful Power X-Change battery platform. The share of Power X-Change products in total sales in the first half of 2024 was already around 51%, an increase of five percentage points compared to the same period last year. In the reporting period from January to June 2024, the Group generated a profit before tax (EBT) of EUR 50.1 million, compared to EUR 44.3 million in the previous year period. The pre-tax margin is therefore 8.7 percent (last year: 8.4 percent).

Power X-Change sales engine

Andreas Kroiss, CEO of Einhell Germany AG: “In the second half of the year, the main focus of our growth strategy will continue to be on our hugely successful Power X-Change platform. Many years ago, we were among the first to recognize the need for battery-powered solutions for DIY enthusiasts and hobby gardeners and positioned ourselves as the category leader with our Power X-Change products. Today, we offer more than 300 battery-powered tools and gardening equipment, inspiring customers in each of our sales countries with our concentrated battery expertise and cordless freedom. By the end of 2027, we plan to expand our platform to 450 tools, all compatible with the same battery. This business strategy will continue to generate sustainable growth for Einhell.”

With a turnover of 576.2 million euros in the first half of the year, the Einhell Group increased its turnover by 50.3 million euros compared to the same period last year. This corresponds to a significant increase of 9.6 percent. In the period January to June 2024, Einhell generated a profit before taxes (EBT) of 50.1 million euros, compared to 44.3 million euros in the same period last year. The pre-tax margin is therefore 8.7 percent (previous year: 8.4 percent). The very positive profit development led to a significant reduction in short-term bank liabilities and a very positive cash flow compared to the same period last year.

Successful stock split

The Annual General Meeting of Shareholders of 28 June 2024 approved a three-for-one stock split, bringing the number of shares to 11,323,200. The Group’s aim is to make the shares available to a broader group of investors. The split lowers the price per share, making it easier for investors to get involved. The long-term aim of the stock split is to increase the share price and thus the market capitalization. The stock split has now been successfully completed and has attracted the interest of many investors. The comparison figure for earnings per share has been adjusted in accordance with the stock split. Earnings per share amount to EUR 3.1 per share (previous year: EUR 2.7 per share).

Strong performance abroad

In the D/A/CH segment (Germany, Austria, Switzerland), turnover increased to EUR 244.6 million (previous year: EUR 227.0 million). The share of Power X-Change products also increased significantly in these countries. In Austria, Power X-Change products already account for 79 percent (previous year: 72 percent). In Western Europe, turnover of EUR 100.3 million is slightly below the previous year’s level (previous year: EUR 102.9 million). The largest sales markets in the segment are France, Italy and the United Kingdom. In Eastern Europe, on the other hand, turnover of EUR 62.8 million is considerably above the previous year’s level (previous year: EUR 51.0 million). The strongest companies in this segment in terms of turnover were the subsidiaries in Turkey, Croatia and Poland. In the Overseas and Other Countries segment, turnover increased by 11.3 percent, from EUR 123.2 million to EUR 137.1 million. The largest contributor to sales in this segment is the Australian subsidiary Einhell Australia, which saw its sales increase by around 20 percent compared to the same period last year. The Production and Sourcing Companies segment also increased its sales performance year-on-year to EUR 31.4 million (previous year: EUR 21.8 million).

Access to promising international markets

The international expansion is one of the most important strategic measures of the Einhell Group. With the takeover of the subsidiaries in Thailand and Vietnam in 2023, the company has succeeded in opening up promising markets where the Board sees a very high business potential. With the new company in Vietnam, Einhell wants to set up a supplier industrial park with strategic partners. The Board also continues to look for suitable takeover candidates in the USA. “As the largest DIY market in the world, the USA offers great potential for our Power X-Change battery products,” emphasizes Andreas Kroiss.

With the establishment of the new Einhell Operations GmbH in 2023, the Group has begun setting up a battery production facility in Hungary. After primarily producing chargers in the first half of the 2024 financial year, the company will begin producing batteries in the second half of the year. “The production facility in Hungary is an important milestone on the path to greater independence and shorter, more sustainable supply chains, and will help to ensure our long-term commercial success,” said Einhell CEO Andreas Kroiss.

Outlook for the second half of the year

In a weak economic environment characterized by widespread uncertainty among end consumers, the Group’s future performance is very difficult to predict. “Despite the macroeconomic slowdown, the Einhell Group has had a very positive first half of the financial year. And we expect the positive development to continue in the second half,” Andreas Kroiss looks ahead with great optimism.

Based on the very strong performance in the first half of the 2024 financial year, the Board of Management confirms its forecast for the full year 2024. According to the business plan, the Board expects sales of EUR 1,030 million and a margin before taxes and PPA of around 8.0 percent.

About Einhell Germany AG

Einhell is a leading manufacturer of state-of-the-art tools and equipment for home and garden and will celebrate its 60th anniversary in 2024. From its headquarters in Landau/Isar (Bavaria), the internationally successful company has continuously expanded its innovative Power X-Change rechargeable battery platform and is now the market leader in cordless tools and garden equipment. Einhell has been setting new standards in terms of durability, performance and safety for years. Einhell customers appreciate the freedom of cordless working for all their DIY projects, as well as the excellent price-performance ratio that Einhell products represent and the first-class customer service that the company offers.