After a rather mixed fiscal year 2023, tool and garden equipment manufacturer Einhell is looking optimistically towards the future. Thanks to increased cash flow in the past year, a successful expansion of the Power X-Change battery platform, and the implementation of its internationalization strategy, the company plans to continue its global brand development in the current fiscal year of 2024.

More on this, as well as the latest figures and plans for 2024, to follow. But first, let me introduce you to the company Einhell and its business model.

Einhell in brief The Einhell Germany AG, which currently employs over 2,000 people, was founded in 1964 by Josef Thannhuber in Landau an der Isar. The company claims to be a leading provider of state-of-the-art tools and garden equipment.

Einhell develops and distributes a variety of do-it-yourself tools in around 100 countries through its 46 subsidiaries. The Thannhuber family still holds the majority of non-listed common shares in the company. The preferred shares of the Bavarian tool company are listed on the Prime Standard of the Deutsche Börse AG.

The devices developed and distributed by Einhell are mostly manufactured in factories in China. Einhell focuses on product development, quality control, sales, and service.

The main customers of the Bavarian family business are hardware stores, specialty retailers, and e-commerce retailers. In addition, Einhell sells some of its products to discounters who market them under their own brand.

Slight decline in sales in the past year Looking back, the company’s sales in fiscal year 2023 did not develop as expected, with particularly disappointing results in the fourth quarter. The company cites reduced consumer behavior as the reason for this.

Negative currency effects also contributed to the decline in sales. Several currencies weakened against the euro, resulting in lower sales in the company’s reporting currency.

Overall, Einhell expects a slight decline in sales of 5.8% to approximately 972 million euros for fiscal year 2023 based on preliminary figures. In fiscal year 2022, the company achieved record sales of over 1.03 billion euros.

Growth strategy for 2024 For fiscal year 2024, Einhell plans to once again exceed 1 billion euros in sales and achieve a stable pre-tax return. In the past year, Einhell was able to significantly increase its liquidity and cash flow by significantly reducing its inventory.

In addition, the company has managed to gain new customers in numerous countries who have included the Einhell brand in their listings. At the same time, the company is leveraging its brand partnerships with FC Bayern Munich and the Mercedes AMG-PETRONAS Formula 1 team, which have had a very positive impact on the international perception of the Einhell brand.

Furthermore, Einhell continues to focus on its successful Power X-Change battery platform (which can charge over 300 Einhell devices with one system). The company plans to expand this platform from its current 300 devices to 450 devices in the coming years.

In addition, Einhell plans to continue its international expansion. In the past year, the company established new subsidiaries in Vietnam and Thailand. In the US, the company is working towards entering the market and is in talks with potential acquisition targets.

The Einhell stock, which performed very well in 2021 and 2022, has been moving sideways for the past few months. If the plans for 2024 are successful, the stock could have room to grow.