Continued success for cordless strategy: Einhell posts sharp rise in revenue and return
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Einhell Germany AG conducted its annual general meeting in virtual form today. The last few months of the garden and tool manufacturer have been marked by very positive trends in sales revenue and earnings. The forecast for the 2021 fiscal year was raised to EUR 800 million. The company is paying a dividend of EUR 2.20 per preference share and EUR 2.14 per common share for the previous year. This corresponds to a dividend payout of EUR 8.178.000, an increase of almost 60 % on the year before.
Forecast raised
Landau a. d. Isar, June 18th, 2021 – The sales revenue of the Group for the last fiscal year had only recently been projected at EUR 724.7 million, an increase of 20 percent on the previous year. Einhell was able to continue this positive trend in the months of January through May 2021, posting group revenue of approx. EUR 383 million (previous year: EUR 273.1 million). With business having come in well above expectations, the Einhell Group raised its forecast for the year to some EUR 800 million alongside a pre-tax return of about 8.0 %.
International development
At the annual general meeting CEO Andreas Kroiss reported on the successful business performance: “With our Power X-Change system we are conquering the world. It is our vision to become synonymous with cordless freedom in every country in which we have a subsidiary. In Power X-Change, we have the right technology and the best product range for the home and garden owner. That’s why we were able to achieve this brilliant growth last year.”
The Board is looking to the future with confidence. For instance the USA, as the world’s largest DIY market, offers enormous growth opportunities for the Lower Bavarian company. It also hopes to tap markets in southeast Asia and Central America as part of its internationalization strategy.
Further growth potential
The online sector was already performing above par in 2020, and demand continues unabated. Einhell will continue to follow the route it has taken towards the digital leadership it desires while also driving the digital sales channels forward. The key areas of focus will be social media, website enhancements, Power X-Change product advisors, and the expansion and optimization of the product detail pages.
To support these measures, the online channel will be decoupled from the main street stores of the subsidiaries and looked after by online specialists able to exhaust the full potential of this segment.
Power X-Change in focus
Strategic emphasis will also be put on expanding the Power X-Change platform. The cordless product range already comprises more than 200 power and garden tools, and is set to be expanded to 350 machines by the end of 2025.
“Our aim is to strengthen the Einhell brand internationally and establish Power X-Change as the most professional cordless platform on the DIY market. That’s why we're also stepping up the delivery of high-reach marketing campaigns in selected countries. Our 2021 ads will be seen on TV screens in Germany, Austria, Hungary, Italy, Spain, and Switzerland. Next year we will be extending our marketing campaign to another six countries. The campaign will be accompanied by many further spots in the print and online segments, with the focus always on our Power X-Change cordless system,” Kroiss added.
About Einhell Germany AG
Einhell is a leading manufacturer of state-of-the-art tools and equipment for the house and garden. 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 equipment. 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.
Press contact: Monika Aigner, Tel.: +49 9951 942 826, E-Mail: monika.aigner@einhell.com
