Einhell increases sales and revenue
Today, the Einhell Group has once again presented an impressive set of results. For the 2022 financial year to date, the specialist for DIY tools has achieved high growth rates both in terms of revenue and profits. Despite the continuing global mood of crisis, the group has significantly exceeded last year’s levels. In the months from January to September 2022, business volume saw a powerful boost with sales of EUR 805.7 million. This means that the company is still on course to exceed the 1-billion Euros sales limit in the 2022 financial year.
Einhell profits from high demand for Power X-Change
In the first nine months of 2022, Einhell profited once again from rising demand for DIY products. Up to 30 September 2022 the contribution made by sales of Power X-Change products as a percentage of total turnover was 42 percent (previous year: 37 percent). In 2022, particularly in the highly significant market of Germany Einhell recorded further important market share gains in the key area of cordless, rechargeable battery-powered devices. In terms of sales of 18 V rechargeable batteries and charging devices in the first six months of 2022, more than one in two batteries and one in two chargers sold here were products from Einhell. Today, the Power X-Change platform already includes more than 250 battery-powered tools for the home and garden, all of which can be operated with a single battery pack. By 2027 the company plans to expand the platform to a range of 450 tools.
At the same time, earnings before taxes (EBT) and purchase price allocation (PPA) totaled EUR 71.2 million (after PPA EUR 69.2 million), which represents an increase by 21.1 percent over the previous year. This corresponds to a return before tax of around 8.6 percent. "Both the market share gain and the continuing strong demand for our Power X-Change products have played a significant role in our increased sales,” explains a delighted Andreas Kroiss, Chairman of the Management Board of Einhell Germany AG. “An important cornerstone of this positive development is our strategy of continually optimizing Einhell brand awareness.”
The cooperation with German soccer legends FC Bayern Munich as “Official Home & Garden Expert” has also made an incredibly important contribution to this success. The TV advertising campaigns with Oliver Kahn and the “E-Team” ran in the spring of 2022 in a total of 13 countries and were repeated again this autumn.
Formula 1 motor racing involvement draws international attention
The board of directors also believes that its latest sponsorship deal will deliver a noticeable boost in international brand perception for Einhell. As of 1 January 2023, Einhell Germany AG will become an official partner of the Mercedes-AMG PETRONAS F1 racing team. As “Official Tool Expert” alongside the Formula 1 team, the brand Einhell will be represented not only with cordless products in the race garage, but also with the brand logo on the vehicle and on the clothing of the drivers and team. “As visionaries of the DIY industry, we think big. This is why, for us, the partnership with the Mercedes-AMG PETRONAS F1 team is the next strategic cornerstone on our path to becoming the global market and technology leader for battery-powered garden and home tools,” says Andreas Kroiss, Chairman of the Management Board of Einhell. The partnership with the Mercedes-AMG PETRONAS F1 team is also the central element of an international TV campaign in 2023, which is set to roll out in 19 countries. The face of the campaign, and the so-called brand ambassador, will be Toto Wolff, team boss and CEO of the Mercedes-AMG PETRONAS F1 team.
International expansion moves on
On 1 March 2022 Einhell Germany AG acquired a 66.67 percent stake in Canadian company Outillages King Canada, Inc. with headquarters in Montreal/Quebec. King Canada is an established distributer of electric tools, industrial equipment, and accessories on the Canadian market. On 1 November 2022, the previous partner in Finland was also acquired, who was already well established on the Finnish market. At the same time, the company is holding further talks with potential takeover candidates in various regions such as Thailand and Vietnam.
“We remain bold and will continue to have an optimistic outlook. We will be adhering to our strategy in order to gain further market share. We will continue on this path and strengthen Einhell into a highly recognized, top-tier international brand,” adds Kroiss.
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.