Hornbach underlines its sustainable success

DIY company presents figures for first half of 2010/2011:
Sales up 3.6 percent, Group operating earnings up 7.6 percent -
Slight increase in earnings forecast announced

 

Frankfurt am Main/Neustadt a. d. Weinstrasse, September 30, 2010. The Hornbach Group has presented pleasing half-year figures. Sales at the Hornbach Holding AG Group grew 6.5 percent to Euro 830.1 million in the second quarter, and by 3.6 percent to Euro 1.66 billion in the first half of the financial year (March 1 to August 31, 2010). On a like-for-like basis, i.e. excluding sales at newly opened stores, Hornbach's sales were 3.7 percent higher in the second quarter and 0.8 percent higher in the first half as a whole. Earnings at the Group rose even faster than sales. Operating earnings (EBIT) showed disproportionate growth compared with sales, rising 14.0 percent to Euro 80.4 million in the second quarter, and by 7.6 percent to Euro 140.0 million in the first half.

 

Similarly positive were the results at Hornbach-Baumarkt-AG. This subgroup, the largest company within the Group, operates 131 DIY megastores with garden centers in nine countries across Europe, of which 92 stores are located in Germany. The subgroup's sales grew 6.5 percent to Euro 775.3 million in the second quarter, and by 3.5 percent to Euro 1.55 billion in the first half. Operating earnings (EBIT) amounted to Euro 67.9 million for the period from June to August (+15.6%), and to Euro 117.5 million for the past six months as a whole (+8.5%).

 

DIY stores and builders' merchant business head-to-head in terms of sales and earnings growth

 

"There are three reasons why I am satisfied with our business performance", commented Albrecht Hornbach, Chairman of the Board of Management of Hornbach Holding AG, at a press conference in Frankfurt. "Firstly, the trend is positive and sales are on the increase. Secondly, the momentum driving this growth came both from Germany and from our stores in other European countries. And thirdly, both the DIY stores and the builders' merchant outlets have delivered improved earnings, thus contributing to the pleasing performance of the overall business." After all, Hornbach Baustoff Union GmbH (HBU) also maintained its growth, increasing its sales 7.1 percent in the second quarter and 5.5 percent in the first half.

 

The Hornbach Group is on the one hand upholding its sales forecast, which foresees growth in a low to medium single-digit percentage range both at the overall Group and at the Baumarkt subgroup. On the other hand, the Group has raised its earnings forecast due to the positive first-half earnings performance and its more favorable assessment of macroeconomic data in the nine European countries with Hornbach stores. Operating earnings are expected to slightly exceed the level reported for the 2009/2010 financial year, for which the overall Group posted EBIT of Euro 151 million. The Board of Management had previously still expected EBIT to fall slightly shorter of the previous year's figure.

 

The Hornbach Group can also point to highly solid key balance sheet figures as of August 31, 2010. Its equity ratio amounts to 41.8% (balance sheet date as of February 28, 2010: 42.4%). The Group's net financial debt has reduced from ? 422.6 million to ? 250.9 million. The overall Group has almost 13,600 employees in total at present. Three new DIY megastores with garden centers are currently being built in the Netherlands (Breda), Romania (Bucharest) and the Czech Republic (Plzen).

 

European leader for FSC-certified timber

 

Albrecht Hornbach pointed out that the Hornbach Group was very actively committed to sustainability. "All of the timber in the items in our product range comes from proven sustainable and socially responsible forestry." With more than 4,500 FSC-certified products, Hornbach is Europe's leading DIY player in this respect. FSC stands for Forest Stewardship Council. The FSC seal guarantees that the timber sold meets the strictest social and ecological criteria. On September 23, 2010, FSC International, the superordinate global federation of national FSC associations, awarded Hornbach-Baumarkt-AG the FSC Global Partner Award in the retail sector for its commitment to protecting rain forests and upholding social standards in international forestry. Hornbach is thus one of the first retail companies worldwide to receive this prize. "With our guiding principles, our commitment to society, and our long-term approach to our business activities and their social implications, we are the top German DIY player when it comes to sustainability. We aim to provide a role model for others and to show that even medium-sized family-driven companies can make a great difference in terms of environmental protection and other issues relevant to society", remarked Albrecht Hornbach.

 

 

Note:

Key figures for the second quarter and the first half of 2010/2011 can be found as follows. The extensive Half-Year Financial Reports 2010/2011 of HORNBACH HOLDING AG and HORNBACH-Baumarkt-AG can be downloaded from the internet at: www.hornbach-group.com/reports.

 

 

Key Figures for 2nd Quarter/1st Half of 2010/2011 at a Glance

 

HORNBACH HOLDING AG Group 2nd Quarter 2nd Quarter Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 830.1 779.4 6.5
Gross margin as % of net sales 36.5% 35.7%  
EBITDA 97.3 88.4 10.1
Earnings before interest and taxes (EBIT) 80.4 70.5 14.0
Consolidated earnings before taxes 73.1 60.8 20.1
Consolidated net income 1) 54.0 41.1 31.3
Earnings per preference share in ? 5.38 4.15 29.6
Investments 24.2 26.1 (7.4)

 

HORNBACH HOLDING AG Group 1st Half 1st Half Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 1,656.8 1,599.2 3.6
Gross margin as % of net sales 36.7% 36.0%  
EBITDA 173.7 165.5 5.0
Earnings before interest and taxes (EBIT) 140.0 130.1 7.6
Consolidated earnings before taxes 126.0 111.2 13.3
Consolidated net income 1) 91.8 78.2 17.4
Earnings per preference share in ? 9.11 7.84 16.2
Investments 43.6 64.9 (32.9)

 

Misc. key figures of the HORNBACH HOLDING AG Group August 31, 2010 February 28, 2010 Change
(in ? million, unless otherwise stated)     %
Total assets 2,267.3 2,032.9 11.5
Shareholders' equity 947.5 861.5 10.0
Shareholders' equity as % of total assets 41.8% 42.4%  
Number of employees 13,596 13,214 2.9

 

 

 

HORNBACH-Baumarkt-AG subgroup 2nd Quarter 2nd Quarter Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 775.3 728.1 6.5
of which: in other European countries 327.1 302.2 8.2
Like-for-like sales growth 2) 3.7% 1.9%  
Gross margin as % of net sales 37.3% 36.5%  
EBITDA 81.2 72.6 11.8
Earnings before interest and taxes (EBIT) 67.9 58.7 15.6
Consolidated earnings before taxes 64.5 53.0 21.7
Consolidated net income 46.6 35.5 31.5
Basic earnings per share in ? 2.93 2.25 30.2
Investments 15.4 14.9 3.7

 

HORNBACH-Baumarkt-AG subgroup 1st Half 1st Half Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 1,555.2 1,502.9 3.5
of which: in other European countries 653.4 614.9 6.3
Like-for-like sales growth 2) 0.8% 1.7%  
Gross margin as % of net sales 37.5% 36.6%  
EBITDA 143.6 135.8 5.8
Earnings before interest and taxes (EBIT) 117.5 108.3 8.5
Consolidated earnings before taxes 111.4 97.4 14.4
Consolidated net income 80.3 68.5 17.2
Basic earnings per share in ? 5.05 4.35 16.1
Investments 27.1 42.3 (35.9)

 

Misc. key figures of the HORNBACH-Baumarkt-AG subgroup August 31, 2010 February 28, 2010 Change
(in ? million, unless otherwise stated)     %
Total assets 1,637.4 1,439.4 13.8
Shareholders' equity 729.2 654.7 11.4
Shareholders' equity as % of total assets 44.5% 45.5%  
Number of stores 131 131 0.0
Sales area in 000 m² (based on BHB) 1,482 1,480 0.1
Number of employees 12,973 12,640 2.6

 

 

1)              pursuant to IFRS including minority interests
2)              currency-adjusted
Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on ? 000s.

 

 

Investor Relations

Axel Müller

Tel: (+49) 0 63 48/ 60 - 2444

Fax: (+49) 0 63 48/ 60 - 4299

E-Mail: invest@hornbach.com  



Download: Press Release H1 2010/2011 (pdf)
Download: Half-Year Financial Report 2010/2011 HORNBACH-Baumarkt-AG Group (pdf)
Download: Half-Year Financial Report 2010/2011 HORNBACH HOLDING AG Group (pdf)