Annual General Meeting of Einhell Germany AG: Good performance and change on the Supervisory Board
Today, Einhell Germany AG held its Annual General Meeting at Stadthalle Landau. The leading supplier of battery-operated tools and garden appliances reported a highly positive revenue and earnings performance in the first months of 2024: the company generated revenue of EUR 478.2 million (previous year: EUR 428.5 million) in the period from January to May 2024. Sales of EUR 565 million are expected in the first half of 2024 (previous year: EUR 525.9 million). The return on sales before taxes and PPA (Purchase Price Allocation) will be around 8.5 % (previous year: 8.6%). For the entire financial year 2024 the Einhell Group expects sales of EUR 1,030 million and return of sales before taxes and PPA will be approximately 8.0 %. Furthermore the Annual General Meeting approved a 3-for-1 stock split. There will be a change on the Supervisory Board.
Successful Power X-Change strategy and brand reinforcement
At the Annual General Meeting, CEO Andreas Kroiss gave an account of the ongoing success of the battery strategy the company embarked on in 2015: “Our strategy of consistently pursuing the expansion of our successful Power X-Change range that we have been following for nearly ten years is continuing to pay off. We will keep on focusing on our Power X-Change products in the ongoing financial year. With this product platform we are striving for market leadership in the field of cordless power tools and garden appliances.”
Another key element of our strategy is the further reinforcement of the Einhell brand which is gaining international awareness thanks to strong partnerships with the Mercedes-AMG PETRONAS F1 team and the football club FC Bayern Munich. In addition to conventional TV campaigns running in several countries around the world, the social media presence is also being increased to reach younger audiences. “We have the clear aim to grow our social media community into one of the largest in the DIY industry,” says Andreas Kroiss.
Stock split to increase visibility
Einhell Germany AG intends to adopt a broader-based capital market strategy. One of the main steps in this direction is a 3-for-1 stock split adopted by the Annual General Meeting. The number of Einhell Germany AG shares held by investors will be increased in relation to the underlying split ratio: investors holding ten shares, for instance, will, in line with the 3-for-1 ratio, receive thirty new certificates after the stock split. The market capitalisation is not changed hereby.
“In addition to institutional investors, we wish to give a broader shareholder base access to our preference share. In the long run, we hope this will raise the share price and the market capitalisation as the split makes the shares more interesting for investors”, Jan Teichert, CFO of Einhell Germany AG explains the new capital market strategy. “A euro price per share that ‘looks’ or ‘feels’ high presents a certain entry barrier to many investors. Stock splitting generally tends to enhance the visibility and attractiveness of the share, and that is also what we expect to see for the Einhell stock.”
Stable dividend
The company’s dividend policy will not be affected by the stock split. The company intends to continue distributing 20-30 percent of the group’s annual net income to shareholders in the form of a dividend. Einhell Germany AG had constantly raised the distributed dividend in recent years. Following a challenging 2023 financial year, the Annual General Meeting now resolved to keep the dividend stable. As such, the company will distribute a dividend of 2.90 euros per preference share and 2.84 euros per ordinary share to the shareholders of Einhell Germany AG. The dividend amount paid to the holders of preference and ordinary shares thus amounts to 10.82 million euros.
International expansion and improved sourcing processes
The international expansion of the Einhell group continues to be one of the most important strategic measures. With the acquisition of the subsidiaries in Thailand and Vietnam in 2023, the company has succeeded in opening up promising markets where the Board of Directors and the Supervisory Board see strong business potential. As such, Einhell acquired 100 percent in the Vietnamese company Swisstec Sourcing Vietnam Joint Stock Company. With the new company, Einhell intends to establish a supplier industrial park with strategic partners in Vietnam in order to become less dependent on China.
Change on the Supervisory Board
The Chairman of Einhell Germany AG’s Supervisory Board of many years, Univ.-Prof. Dr.-Ing. Dr.-Ing. E.h. Dr. h.c. Dieter Spath, resigned from the Supervisory Board with effect from the end of the Annual General Meeting. It was therefore necessary to elect a new member to the Supervisory Board. The Annual General Meeting followed the proposal of the Supervisory Board to elect Professor Dr. Manfred Schwaiger, Gauting, Professor of Business Administration and Director of the Institute for Market-based Management at the Ludwig Maximilian University of Munich, to the Supervisory Board as a shareholder representative with effect from the end of the Annual General Meeting until the end of the Annual General Meeting that resolves on the approval of the actions for the 2027 financial year.
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.