2022 a record year: Einhell hits billion euro mark in sales for the first time
In the 2022 fiscal year, Einhell Germany AG achieved a goal it had been pursuing for some time as the leading manufacturer of ultramodern DIY and garden tools passed the billion euro sales mark for the very first time. Consolidated revenue climbed eleven percent from EUR 927.4 million to EUR 1,032.5 million, while the pre-tax result rose from EUR 81.8 million the year before to EUR 87.4 million in 2022. This represents an 8.5 percent improvement in consolidated pre-tax earnings.
Higher dividend payout
“What sets us apart is the unbelievably strong cohesion in the company and the team spirit that we embody every day. As a strong team, we were able to hit the billion euro sales mark for the first time in the company's history despite the challenging times. This success can also be attributed to our consistent strategic orientation. We recognized the need of DIYers and amateur gardeners for battery-operated solutions many years ago, and positioned ourselves as a category leader in this segment. That, along with our supply reliability and our innovative products, has enabled us to win market share and further increase revenue in numerous sales markets across the world,” says Andreas Kroiss, CEO of the company since 2003, commenting on the positive development.
The Management Board and the Supervisory Board is proposing that the annual general meeting approve a dividend payout of EUR 10.820 million. This is equivalent to a dividend of EUR 2.90 per preference share (previous year: EUR 2.60) and EUR 2.84 per common share (previous year: EUR 2.54), an increase of some twelve percent.
Power X-Change battery system driving success
The ongoing business success is driven by the Power X-Change battery platform, which enables Einhell to offer the most efficient battery system for DIYers and amateur gardeners on the market. All Power X-Change batteries can already be used in more than 250 home and garden tools across different ranges. Cordless tools from Einhell consistently score top marks or emerge as test winners in many independent consumer and expert tests. In 2023, the company will again significantly expand the extremely successful Power X-Change platform in both the garden and DIY sectors. The plan is to expand the range to 450 products by the year 2027 in order to consolidate the company’s pioneering role in the battery technology segment and further enhance its attractiveness to customers.
International brand
Expansion of the international brand continues to be the central focus of the strategic orientation. Following the partnership with soccer club Bayern Munich, which has already contributed enormously to the international brand development of Einhell Germany AG, worldwide expansion is now also being supported by the long-term agreement with premium partner, the Mercedes-AMG PETRONAS F1 Team, that has been in place since January 2023. “This cooperation of two leading international brands reflects their supreme technology expertise. As the ‘Official Tool Expert’ of the Mercedes-AMG PETRONAS F1 Team, we are underlining our highest technological standards and continuing to blaze a trail as the global market and technology leader for battery-operated DIY and garden tools,” Kroiss continues. Both partnerships are being supported with a comprehensive, 360-degree marketing campaign, with the international focus on far-reaching TV campaigns. Oliver Kahn, CEO of Bayern Munich, and Toto Wolff, CEO and Principal of the Mercedes-AMG PETRONAS F1 Team, appear in them as ambassadors for the Einhell brand.
International expansion
To enable it to achieve the medium-term revenue targets, the Einhell Group will continue to expand its international sales structure over the next years while also opening up new DIY markets in which the Group does not yet have a presence. On March 1, 2022, for instance, the company acquired 66.67 percent of the shares in Canadian company Outillages King Canada, Inc. This firm has established a very strong position for itself as a distributor of power tools, industrial equipment, and accessories. November 2022 then saw the acquisition of Einhell business from a long-standing partner in Finland. The newly acquired companies in Canada and Finland are to be integrated further into the existing organization in 2023. Work on two further acquisitions in Vietnam and Thailand is currently in progress.
Outlook for 2023
In light of previous experience in global economic crises, such as during the pandemic, but also due to its strength in the various sales channels, the Einhell Group expects business to continue trending positively. “Our goals are the further international expansion of the Einhell brand, the continued internationalization of our Group, and an improvement in our market share in target markets. In doing so, we will benefit from our strategic orientation over the last few years, and can look forward to the 2023 fiscal year with confidence. Based on these estimates and the general uncertainty on global markets, we are planning organic revenue growth of around three percent and a pre-tax return of around 8.0 to 8.5 percent for the 2023 fiscal year,” says Andreas Kroiss.
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.