Einhell group boosts sales and wins market share
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In the financial year 2019 Einhell Germany AG posted another record EUR 605.7 million in sales revenue, thereby meeting its sales forecast from the beginning of the year. Recent developments make it very difficult to offer a forecast for the financial year 2020, however. The assumption for the moment is that Einhell will remain profitable in 2020 as well. The expansion of the Einhell brand will also play an important role.
Further sales revenue record for Einhell Germany AG
Landau a. d. Isar, 4/24/2020 - The Einhell group posted EUR 605.7 million (prior year: EUR 577.9 million) in group sales, which equates to an increase of just under 5%. Pre-tax revenue came in at EUR 32.5 million, but earnings per share slipped from EUR 6.90 to EUR 6.40 despite the rise in sales.
Einhell Germany AG is fundamentally pursuing sustainable, profitable growth in both sales and profits. The medium and long-term strategic objectives are reviewed annually by the Board of Directors and senior management and adapted where necessary.
A cordless future with Power X-Change
With battery-powered tools becoming ever more popular among amateur gardeners and DIYers alike, Einhell is looking to expand its cordless Power X-Change platform again in the new financial year with the aim of becoming the category leader in this segment.
"Our focus remains on expanding our cordless Power X-Change platform. It already comprises more than 130 cordless tools and garden machines today, and will be boosted to 170 by the end of 2020. We are working intensively on offering the entire range of our cordless Power X-Change product family wherever customers want to dispense with cables and petrol engines. The cordless machines we supply are the perfect solution," says Chairman Andreas Kroiss.
This was why the platform was also opened to other cooperation partners. The cordless technology is used for E-Kickscooters from GOVECS, children's electric vehicles from Jamara and logistics transport systems from Blickle, to give a few examples.
Staying on track for success
Current market data, too, confirm the positive growth: Einhell was able to significantly boost its market share thanks to a consistent product development and product range policy, for instance. Einhell has now joined its competitors Bosch and Makita among the top three for the most unit quantities sold in the power tools segment. Indeed, Einhell occupies top spot for cordless garden equipment, ahead even of Gardena and Bosch.
Highlights of the last year
The first half of 2019 saw completion of the entry into the US market alongside an American partner already established on the DIY market. If the cooperation is successful, Einhell Germany AG has the contractual right to buy shares in Einhell USA.
"This reflects the procedure we have been employing successfully for many years when opening up new markets. We firmly believe that we can gain a secure foothold on the US market and that we can profitably exploit the untapped market potential there," says Chairman Andreas Kroiss.
Another highlight was the opening of Einhell World in summer 2019, following 18 months of construction. Some 1700 m2 in size, the building accommodates several conference and office rooms as well as an exhibition space that showcases the diversity of the Einhell product range. The demonstration workshops and outdoor test grounds give customers an opportunity to see the quality of Einhell machines for themselves.
Planned developments in the financial year 2020
Further expansion of the Einhell brand will remain the focus for the next few years. The successful international TV campaign of 2019 will be continued in Germany and Austria in 2020, with other countries already under consideration.
In addition, the cooperation with BMW i Motorsport in Formula E will be intensified further, since the issues of e-mobility and battery expertise are a perfect fit and contribute to the international perception of the Einhell brand.
The expansion of the logistics center in Landau/Isar is also on the cards for the current financial year. The first phase, the construction of a new goods receiving terminal will be completed before the end of the year. The second phase of the project comprises a new, ultramodern high-rack warehouse and storage management system.
Given the impact of the coronavirus outbreak, it is very difficult at this present time to offer an assessment for 2020 as a whole. The effects on group sales and group revenue will depend to a large extent on the government measures and restrictions in the various countries in which the Einhell group operates.
As things stand today, however, what can certainly be said is that the group will definitely remain profitable in 2020, despite the considerable economic damage caused by coronavirus. The sales of the Einhell group generally developed very well in the first quarter of 2020. Only in the second half of March did sales decline in some countries due to closures. The effects on revenue differ sharply from one country to another, due in part to different shares of e-commerce business. According to provisional figures, group sales in the first three months of the financial year 2020 come to about EUR 154 million, putting them just a little below the figure for the previous year.
About Einhell
Einhell is a leading manufacturer of state-of-the-art tools and equipment for the house and garden. By continuously expanding our innovative rechargeable battery platform Power X-Change, we are now already the market leader in the area of cordless tools and garden equipment. We set new standards in terms of the endurance, performance and safety of our products and inspire our customers by offering excellent value for money, first-class customer service and the freedom of cordless operation for all their DIY projects.
Press contact: Monika Aigner, Tel.: +49 9951 942 826, E-Mail: monika.aigner@einhell.com