Half-year report: Einhell sets the course for the next growth steps
After a record year in 2022 with more than 1 billion euros in sales for the first time, followed by consolidation in the 1st quarter of 2023, Einhell Germany AG is continuing its growth trajectory. Having already established a leading position for itself in many markets with its Power X-Change battery platform, Einhell is now focusing both on the expansion of proprietary battery production in Europe and on international corporate acquisitions. The share of Power X-Change products sold in the total sales of the group was also increased to 46 percent, corresponding to a rise of three percentage points on 2022, a record year. Despite the challenging economic climate across the world, the board of Einhell Germany AG is standing by its very ambitious targets for the year.
CEO Andreas Kroiss: The aim is sustainable growth
Andreas Kroiss, CEO of Einhell Germany AG: “Einhell was the first company in the DIY and garden tool sector to establish a battery platform, Power X-Change. It now comprises more than 300 tools and will be expanded to some 450 products by 2027. Going forward, we will continue to utilize our expertise in the battery technology segment to develop innovative solutions for consumers, and tap into new markets around the globe. These are the core elements of our corporate strategy to deliver sustainable growth for Einhell.”
As already reported, the Einhell Group had finished the first quarter of 2023 with the second best figures in the company’s history. In the second quarter of 2023 sales continued to approach the record level of 2022. Overall, Einhell posted revenue of EUR 525.9 million for the first half of 2023, just 6.7 percent below the record EUR 563.7 million in sales achieved for the same period the year before. This was due in part to exchange rate effects in various countries. The other financial ratios also consolidated on the records posted in 2022, with earnings before tax (EBT) reaching EUR 44.3 million (previous year EUR 48.2 million), pre-tax earnings 8.4 percent (previous year 8.5 percent) and earnings per share EUR 8.0 (previous year EUR 9.0).
Einhell board expects a much stronger second half
“Overall the second quarter has been a satisfactory one for the Einhell Group. The Einhell Group expects a much stronger second half compared with the previous year, when customers were running down their stocks. That means sales should now pick up again,” the board of Einhell Germany AG states in its half-year report.
To further optimize perception of the Einhell brand, the company will also step up marketing measures in the current fiscal year. “The cooperation agreed last year with the Mercedes-AMG PETRONAS F1 Team is another key element here. This partnership brings together two strong international brands that have the highest technological aspirations. The cooperation with the Mercedes-AMG PETRONAS F1 Team is already having a positive impact on the visibility and image of the Einhell brand, and will be expanded further in the future. The collaboration with soccer club FC Bayern Munich will also be continued with the aim of ensuring even greater visibility for the Einhell brand.”
Extensive international activities
To prepare itself for this further growth, Einhell Germany AG founded Einhell Operations GmbH in Budapest (Hungary) in July. Einhell Germany AG holds 100 percent of the shares in the company, which is to concentrate on the manufacture of batteries.
Einhell Germany AG has also acquired 100 percent of the shares in the Vietnamese company Swisstec Sourcing Vietnam Joint Stock Company, based in Thu Dau Mot City (Vietnam). The company is an established distributor of screws, fastening materials and various hand tools, and its main customers are European and Canadian do-it-yourself retail chains. On the back of its longstanding experience, Swisstec will assume responsibility for sourcing and packing the Einhell and KWB accessories in the future. The addition of the company to the group marks another important strategic step towards broadening the purchasing base in the Asian market.
To drive expansion in Thailand as well, on June 1st this year Einhell Germany AG acquired 66.67 percent of the shares in the newly formed Surazinsano Co., Ltd., based in Bangkok (Thailand).
In South Africa, meanwhile, Einhell Germany AG has increased its shareholding in Lawn Star Pty Ltd. and Mould Star Ltd. by acquiring the remaining 49 percent, having taken a 51 percent stake in this highly regarded company back in 2020. The company is making great strides and succeeded in winning a contract with one of the largest DIY chains in the country.
Einhell is also holding promising discussions with takeover candidates in the USA, which is regarded as the biggest DIY market in the world and thus offers huge potential for the Power X-Change battery platform.
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.