Half year report: Einhell remains on growth path
The Einhell Group managed to significantly increase revenue in the first half of the 2024 financial year from EUR 525.9 million to EUR 576.2 million, thus continuing its growth strategy undeterred in a difficult macroeconomic environment. Main growth driver is the successful battery platform Power X-Change. The Power X-Change products’ share of total revenue already reached around 51% in the first half of 2024, up five percentage points compared to the prior-year period. In the reporting period January to June 2024, the Group generated earnings before taxes (EBT) of EUR 50.1 million, compared to EUR 44.3 million in the prior-year period. The pre-tax margin thus amounts to 8.7 percent (previous year: 8.4 percent).
Revenue driver Power X-Change
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 tremendously successful Power X-Change platform. Many years ago, we were one of the first to recognise the need for battery-powered solutions for DIY enthusiasts and hobby gardeners, and have 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 and every one of our sales countries with our concentrated battery expertise and cordless freedom. By the end of 2027, we plan to have expanded our platform to 450 tools, all compatible with the same battery. This corporate strategy will continue to generate sustainable growth for Einhell.“
With revenue of EUR 576.2 million in the first half year, the Einhell Group increased its revenue by EUR 50.3 million compared to the prior-year period. This corresponds to a significant increase of 9.6 percent. In the time period January to June 2024, Einhell generated earnings before taxes (EBT) of EUR 50.1 million, compared to EUR 44.3 million in the prior-year period. The pre-tax margin thus amounts to 8.7 percent (previous year: 8.4 percent). The very positive earnings performance led to a significant decrease in current liabilities to banks and a highly positive cash flow compared to the prior-year period.
Successful share split
The Annual General Meeting on 28 June 2024 approved a three-for-one share split. This took the number of shares up to 11,323,200. The Group’s aim is to make the shares available to a wider range of investors. The split lowers the price per share, thus making it easier for investors to enter the stock. The long-term objective of the share split is to boost the share price and consequently the market capitalisation. The share split has in the meantime been successfully completed and met with the interest of numerous investors. The comparison figure for earnings per share was adjusted in accordance with the share 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), revenue increased to EUR 244.6 million (previous year: EUR 227.0 million). The share of Power X-Change products has also increased significantly in these countries. In Austria, the Power X-Change products already account for 79 percent (previous year: 72 percent). In Western Europe, revenue of EUR 100.3 million is slightly below the prior-year level (previous year: EUR 102.9 million). The largest sales markets in the segment include France, Italy and the UK. In Eastern Europe, on the other hand, revenue of EUR 62.8 million is significantly above the prior-year level (previous year: EUR 51.0 million). The strongest companies in this segment in terms of revenue were the subsidiaries in Turkey, Croatia and Poland. In the Overseas and Other Countries segment, revenue increased by 11.3 percent, from EUR 123.2 million to EUR 137.1 million. The largest contributor to revenue in this segment is the Australian subsidiary Einhell Australia, which increased its revenue by around 20 percent compared to the prior-year period. The Production and Sourcing Companies segment also managed to increase its revenue performance year-on-year to EUR 31.4 million (previous year: EUR 21.8 million).
Entry in promising international markets
The international expansion is one of the Einhell Group’s most important strategic measures. With the acquisition of the subsidiaries in Thailand and Vietnam in 2023, the company has succeeded in opening up promising markets where the Board sees very high business potential. With the new company in Vietnam, Einhell intends to establish a supplier industrial park with strategic partners. The Board also continues its search for suitable takeover candidates in the United States. “As the largest DIY market in the world, the United States offer great potential for our Power X-Change battery products,” Andreas Kroiss points out.
With the foundation of the new Einhell Operations GmbH in 2023, the Group has started to establish a battery production facility in Hungary. After having predominantly produced charging devices in the first half of financial year 2024, the company will start to produce batteries in the second half of the year. “The production facility in Hungary is an important milestone on the road to greater independence and shorter, more sustainable supply chains, helping to ensure our commercial success in the long term,” says Einhell CEO Andreas Kroiss.
Outlook second half year
In a weak economic environment coined by widespread uncertainty among end consumers, the future performance of the Group is very difficult to predict. “In spite of 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 financial year 2024, the Board of Directors reaffirms its guidance for the full year 2024. According to corporate planning, the Board expects revenue of EUR 1,030 million and a margin before taxes and PPA of approx. 8.0 percent.
Über die Einhell Germany AG
Einhell ist führender Hersteller hochmoderner Werkzeuge rund um Haus und Garten und feiert im Jahr 2024 sein 60-jähriges Jubiläum. Durch den stetigen Ausbau seiner innovativen Akku-Plattform Power X-Change ist das international erfolgreiche Unternehmen mit Sitz in Landau/Isar (Bayern) Vorreiter im Bereich akkubetriebener Werkzeuge und Gartengeräte. Seit Jahren setzt Einhell mit seinen Produkten Standards in puncto Ausdauer, Leistungsstärke und Sicherheit. Die Einhell Kunden schätzen zudem die kabellose Freiheit bei allen Do-It-Yourself-Projekten, das attraktive Preis-Leistungs-Verhältnis und den erstklassigen Kundenservice.