Einhell achieves record revenue with 11 percent growth in third quarter
The Einhell Group generated record revenue and a record profit in the first nine months of the 2024 financial year. The leading international manufacturer of battery-powered tools and garden equipment has not only significantly exceeded last year’s revenue level, but also the corresponding revenue in the record year of 2022, and has achieved double-digit growth in the third quarter: In the first nine months of the year from January to September 2024, the company generated revenue of EUR 839.3 million (previous year: EUR 755.8 million). This represents an increase of 11 percent on the same period last year and 4.2 percent on the record year of 2022. Revenue growth is driven primarily by the great demand for Power X-Change products. Compared to the same period last year, the revenue share of Power X-Change (PXC) tools has increased from 45 percent to around 50 percent.
Clear strategic focus drives sustainable growth
“We are pleased that despite the challenging times we have been able to perform successfully and continue on our growth path,” says Andreas Kroiss, CEO of Einhell Germany AG. “And we are particularly happy to report that this success is based on our consistent strategy of cordless freedom in the DIY market.”
From January to September 2024, the Einhell Group generated profit before income taxes of EUR 72.7 million (previous year: EUR 62.8 million). The pre-tax margin is 8.7 percent (previous year: 8.3 percent). Earnings per share amount to EUR 4.5 per share (previous year: EUR 3.8 per share).
A three-for-one share split was carried out in the financial year, taking the number of shares up to 11,323,200. The comparison figure per share was adjusted in accordance with the share split.
International expansion
The international expansion continues to be one of the Einhell Group’s most important strategic cornerstones. The acquisition of the subsidiaries in Thailand and Vietnam in 2023 opened up markets with significant economic potential for the Einhell Group. As such, Einhell plans to establish a sourcing structure in Vietnam over the next few years. In addition, the company in Thailand will be further integrated into the existing structure of the Einhell Group.
With the new EINHELL Operations GmbH, the Group started to set up its battery production in Hungary in 2023. After producing chargers in the first half of 2024, the company started producing 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 long-term commercial success.
In addition, 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 the Power X-Change battery platform.
Strategic brand partnerships
In order to further increase awareness of the Einhell brand, the company continues to step up its marketing activities this financial year. The cooperation with the Mercedes-AMG PETRONAS F1 team is a key element of this strategy. Einhell and Mercedes come together in this partnership as two strong international brands that represent the highest technological standards. The cooperation with the Mercedes-AMG PETRONAS F1 Team has a positive impact on the visibility and image of the Einhell brand worldwide. In addition, the Einhell Group further intensifies its collaboration with the FC Bayern Munich football club, underpinned by wide-ranging international marketing campaigns.
Optimistic outlook
“The financial year to date has been characterised by a challenging market environment and economic stagnation in Germany. Despite the current difficult macroeconomic situation, we are optimistic about the further course of 2024 and about 2025,” said Kroiss. “Moreover, the Einhell Group has succeeded in winning new customers in numerous countries, who have added the Einhell brand to their listings. Based on the very positive business performance in the last three quarters, we have raised our full-year forecast for 2024 in October. The Board of Directors now expects revenue for the financial year 2024 to be in the region of EUR 1,070 million instead of the previous EUR 1,030 million."
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.