Successful start to the year: Einhell increases revenue and earnings in the first quarter of 2024
The first quarter of the current financial year has been very successful for the Einhell Group. The company achieved revenue of EUR 269.5 million (previous year: EUR 249.9 million) in the quarter from January to March 2024. Earnings before taxes (EBT) increased by 11.3 percent to EUR 22.6 million (previous year: EUR 20.3 million). The pre-tax margin amounted to 8.4 percent (previous year: 8.1 percent). Growth was particularly strong in the D/A/CH region: Revenue in the D/A/CH region increased by EUR 9.6 million to EUR 109.5 million in the first quarter of the 2024 financial year.
Power X-Change continues growth trajectory
“We achieved a very positive performance in the first quarter of 2024. Our strategy of consistently focusing on the expansion of our successful Power X-Change product range is paying off,” says Andreas Kroiss, CEO of Einhell Germany AG. Einhell is one of the leading suppliers in the DIY sector, offering innovative battery-powered tools of the highest quality at excellent value for money. The share of revenue in the D/A/CH region generated with the cordless Power X-Change tools increased significantly from 49 percent in the previous year to 62 percent. On a global basis, the share rose from 41 percent to around 50 percent. The cordless Power X-Change product range currently comprises more than 300 battery-powered tools and garden appliances. By 2027, the Einhell Group expects to have around 450 products on the market that can be powered by a single type of battery.
Significant reduction in liabilities to banks and reduction in inventories
The strong earnings and the reduction in inventories from EUR 414.9 million to EUR 341.4 million led to a significant decrease in current liabilities to banks in the first quarter of 2024 compared to the prior-year period. After having stocked up during the COVID-19 pandemic to ensure their ability to deliver, customers reduced their inventories as planned as supply chain management has returned to normal. The Group’s liquidity also benefited from the supply chain finance structures introduced in China last year.
Strategic brand partnerships
In order to further increase awareness of the Einhell brand, the company will continue to strengthen its marketing measures in the current financial year. The cooperation with the Mercedes-AMG PETRONAS F1 team is a key element of this strategy. Einhell and Mercedes are united in this partnership as two strong international brands that represent the best of technological finesse. The cooperation with the Mercedes-AMG PETRONAS F1 Team also has a positive impact internationally in terms of awareness and image of the Einhell brand. In addition, the Einhell Group will further intensify its cooperation with the FC Bayern Munich football club, underpinned by wide-ranging international marketing campaigns.
Focus on international expansion
“Our international expansion is one of our most important strategic drivers,” says Andreas Kroiss. “With the acquisition of our subsidiaries in Thailand and Vietnam in 2023, we have been able to enter promising markets whose economic potential we consider to be very high.” As such, the Einhell Group is planning to set up a supplier industrial park with strategic partners 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. In the USA, the Board of Directors continues to look for suitable takeover candidates. As the largest DIY market in the world, the USA offers great potential for Einhell’s successful Power X-Change platform.
Outlook for financial year 2024
“The market environment continues to be challenging in financial year 2024. In spite of the current difficult macroeconomic context, we are optimistic with regard to our performance in the current year,” says CEO Andreas Kroiss. “In numerous countries, we have succeeded in winning new customers, who have added the Einhell brand to their listings. This provides an excellent basis for revenue growth in the current financial year, especially if the macroeconomic situation improves.”
The Board of Directors expects revenue growth of approx. 6 percent in financial year 2024 compared to the previous year. In terms of earnings before taxes, the Einhell Group expects a margin of around 7.5 to 8.0 percent.
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.