Einhell optimistic about 2024 financial year
Einhell Germany AG, the leading supplier of state-of-the-art DIY and garden tools, is optimistic about the future. With a higher cash flow from last year, the successful enlargement of the Power X-Change platform, and the rollout of the internationalization strategy, the global expansion of the brand is continuing at pace.
Strong cash flow and new customers
The Einhell Group managed to turn in a generally satisfactory performance in the last financial year in what was a challenging market environment. Despite the difficult macroeconomic climate at the moment and the disruptions to the global supply chain, the company can look back on a solid year, with high consolidated earnings and the significant reduction in inventories having a very positive effect on cash flow. For Jan Teichert, CFO of Einhell Germany AG, these are not the only reasons to be optimistic about the 2024 financial year that has just started. “In many countries we have managed to win new customers who are adding the Einhell brand to their listings. That gives us an outstanding platform for growing sales in the current financial year, especially once the economic situation brightens,” says Jan Teichert. The company is at the same time continuing to build on its brand partnerships with FC Bayern and the Mercedes AMG-PETRONAS F1 Team. “These two partnerships are having a very positive impact on the perception of the Einhell brand and making a significant contribution to the expansion of the brand internationally,” the Einhell CFO adds.
Further expansion of the Power X-Change platform
The company is also continuing to focus all its energies on its highly successful Power X-Change battery platform. Launched in 2015, the platform had already grown to over 300 tools by the end of the 2023 financial year, giving Einhell a leading position in battery platforms in the DIY market. The battery specialist is concentrating on its clear expertise in this sector and intends to expand the platform to 450 tools over the next few years. The company is also consistently pursuing its long-term, dynamic growth strategy, having been able to establish new subsidiaries in Vietnam and Thailand in the 2023 financial year. The company continues to work on gaining entry into the US market, with the executive board currently engaged in discussions with potential takeover candidates.
Currency losses in the last financial year
Looking back, sales figures for the 2023 financial year came in rather lower than the company had expected. The fourth quarter lagged behind forecasts because the Einhell Group was unable to reach its sales targets for the period. This can be attributed both to lower consumer spending and to the influence of exchange rate movements on sales. Several currencies softened against the euro, the Group’s accounting currency, leading to lower sales figures on conversion. Based on the provisional figures for the 2023 financial year, the Group accordingly expects sales to have dropped slightly to approx. EUR 972 million from EUR 1,032 million the year before.
In 2024 Einhell expects to pass the 1 billion euro mark in sales again with a steady pre-tax return, although this is, as always, subject to current forecasting uncertainties such as currency effects and changes in economic trends and purchasing power.
About Einhell Germany AG
Einhell is a leading manufacturer of state-of-the-art tools and devices for the house and garden and will be celebrating its 60th anniversary in 2024. From its headquarters in Landau/Isar (Bavaria), the internationally successful company has continuously expanded its innovative rechargeable battery platform Power X-Change and is now the market leader in the area of cordless tools and garden devices. For many years Einhell has set new standards in terms of endurance, performance, and safety. Einhell customers appreciate the freedom of cordless operation for all their DIY projects, as well as the excellent value for money that Einhell products represent and the first-class customer service offered by the company.