Einhell Germany AG: Rechargeable battery strategy pays off - 2020 sees Einhell deliver best ever results in the company's history
DGAP-News: Einhell Germany AG / Key word(s): Annual Results
Rechargeable battery strategy pays off - 2020 sees Einhell deliver best ever results in the company's history
"With our innovative Power X-Change rechargeable battery system, from an early stage we moved into a pioneering role in the field of battery technology at Einhell, and our long-term strategy has paid off. Einhell is the market leader for many cordless tools for the home and garden, and we are continuing to grow," explains Andreas Kroiss, Chairman of the Management Board of Einhell Germany AG, marking today's publication of the 2020 annual report.
"The expansion of our Power X-Change platform is our strategic priority. Our medium-term goal is to increase the revenue share of these products to around 40 percent of our overall revenue," explains Andreas Kroiss. But here, the focus of Einhell is not just on Germany, the second-biggest market in the world for DIY products.
In the 3rd quarter of 2020, Einhell acquired 51 percent stakes in garden equipment suppliers Lawn Star Ltd. and Mould Star Ltd. in South Africa - pursuing a goal of growth both here and in neighboring countries as well. "The acquisition of companies that are already successfully active in the target market is part of our long-term M&A strategy," explains Andreas Kroiss. In the coming years, the expansion strategy of Einhell will also focus on Southeast Asia and Central America. At the same time, Einhell has opened up the Power-X Change platform and has offered it to manufacturers of products from areas outside of the home and garden sector so that they can profit from this innovative rechargeable battery strategy.
Einhell rigorously pursues a strong brand strategy
"Building up the brand Einhell will continue to be an important strategic aim of the group in the coming years. We are focusing a lot of effort on supporting our brand positioning with carefully targeted measures. For example, in the spring of 2021, TV advertising campaigns and other activation measures were launched in the countries Austria, Switzerland, Hungary, Italy, and Spain. In addition, we will be further expanding our online offering, thereby also continuing to strengthen digital sales channels noticeably," explains Andreas Kroiss.
While the COVID-19 pandemic has meant that customers are investing more in their own homes and gardens, the increased prices for freight and raw materials and the issues around safeguarding supply chains are presenting companies all around the world with major challenges. Here again, Einhell's long-term and sustainable strategy is paying off. In 2020, a new incoming goods terminal was taken into operation, which is part of the project to expand the logistics center at the company headquarters in Landau an der Isar. And this year the new high-bay warehouse is due to be completed. This will increase warehouse capacity by more than 41,000 pallet bays, which will further stabilize our delivery capability.
Thanks to employees and shareholders
Andreas Kroiss: "Thanks to the amazing commitment displayed by our employees and the high level of trust placed by shareholders in the Executive Board and Supervisory Board, Einhell will emerge strengthened from this period, which has been so difficult for everyone. For the financial year 2021 we are planning for an overall revenue of between EUR 739 and 746 million and a group yield before taxes of approx. 7.0 percent."
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.
|Company:||Einhell Germany AG|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1188184|
|End of News||DGAP News Service|