Hornbach posts further growth

- Nine-month consolidated sales up 4.8% to Euro 2.4 billion - Earnings grow faster than sales

- Germany as key growth driver in DIY store business

 

Neustadt a. d. W., December 21, 2010.
The Hornbach Group's business performance has gained further momentum. The Rhineland-Palatinate DIY group stepped up its sales and earnings growth in the last three months of the nine-month reporting period (March 1 to November 30, 2010). Following growth of 7.5% to Euro 765.4 million in the third quarter, nine-month net sales at the Hornbach Holding AG Group rose by 4.8% to Euro 2,422.2 million (previous year: Euro 2,311.3m). This growth was driven both by Germany and by other European countries. The DIY megastores with garden centers in Germany reported a particularly dynamic sales performance. Operating earnings (EBIT) at the Hornbach Group improved disproportionately compared with sales in the first nine months of the current 2010/2011 financial year, rising by 11.1% to Euro 169.6 million (previous year: Euro 152.6m).

 

Having opened a new DIY megastore with a garden center in Breda (Netherlands), Hornbach-Baumarkt-AG, the largest operating subgroup, was operating a total of 132 DIY megastores with garden centers in nine countries, of which 92 stores in Germany, as of November 30, 2010. Nine-month sales at this subgroup increased by 4.7% to Euro 2,267.9 million (previous year: Euro 2,166.4m). On a like-for-like basis, i.e. excluding stores newly opened in the past twelve months, and net of currency items sales grew by 1.8% (including currency items: plus 3.3%).

 

"We are more than satisfied with the performance of our DIY stores and garden centers in Germany. In a comparison of all Hornbach regions, this is where demand from our project customers showed the sharpest growth in the third quarter. German DIY enthusiasts are feeling confident. That is reflected in our like-for-like sales growth of 6.4% in the third quarter and 2.7% in the first nine months," commented Albrecht Hornbach, Chairman of the Board of Management of Hornbach Holding AG. "Having said this, we are also pleased with the like-for-like sales growth generated in other European countries. Our growth has a broad footing." The 40 Hornbach stores in the eight countries outside Germany increased their like-for-like sales by 1.3% in the third quarter and by 0.6% cumulatively. Including currency items, their sales grew by 5.4% and 4.1% respectively.


Growth in the builders' merchant business pooled at the Hornbach Baustoff Union GmbH subgroup also accelerated further compared with previous quarters, with sales rising by 8.4% to Euro 52.6 million in the third quarter (previous year: Euro 48.5m). Sales for the first nine months grew by 6.4% to Euro 154.0 million (previous year: Euro 144.7m).

 

This positive sales trend, accompanied by a group-wide improvement in the gross margin, further enhanced the disproportionate earnings growth reported by the Hornbach Holding AG Group for the first nine months of the 2010/2011 financial year compared with the first half. Nine-month operating earnings (EBIT) at the Hornbach Group grew 11.1% to Euro 169.6 million (previous year: Euro 152.6m). Foreign exchange gains and a positive tax item led to even more marked growth in net income for the period, which increased by 29.8% to Euro 113.1 million in the first nine months (previous year: Euro 87.1m). Earnings per preference share most recently amounted to Euro 11.45 (previous year: Euro 8.82).

 

The Hornbach Group's balance sheet remains in optimal shape. The equity ratio improved to 42.5% as of November 30, 2010, up from 42.4% at the balance sheet date (February 28). Cash and cash equivalents rose from Euro 335.1 million to Euro 550.0 million. Net financial debt at the Hornbach Group fell from Euro 422.6 million at the balance sheet date to Euro 251.8 million at the end of November. At Hornbach-Baumarkt-AG, cash and cash equivalents exceeded financial debt as of November 30, 2010. This subgroup can thus report net financial assets of Euro 50.3 million. By comparison, its net financial debt had still amounted to Euro 126.3 million as of February 28, 2010.

 

Hornbach is not making any changes to its sales and earnings forecasts for the overall 2010/2011 financial year (balance sheet date: February 28, 2011). Accordingly, both the Hornbach Holding AG Group and the Hornbach-Baumarkt-AG subgroup expect to post sales growth in a low to medium single-digit percentage range. Notwithstanding higher project-related administration expenses, the two companies also expect their operating earnings (EBIT) to exceed the figures reported for the 2009/2010 financial year.

 

 

 

 

Note:

 

The most important key figures for the third quarter and first nine months of 2010/2011 can be found as follows. The extensive interim reports of Hornbach Holding AG and Hornbach-Baumarkt-AG can be downloaded from the internet at: http://www.hornbach-group.com/reports.

 

 

 

 


Key Figures for 3rd Quarter/1st Nine Months of 2010/2011 at a Glance

 

HORNBACH HOLDING AG Group 3rd Quarter 3rd Quarter Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 765.4 712.1 7.5
Gross margin as % of net sales 35.7% 35.3%  
EBITDA 46.7 39.1 19.4
EBIT 29.6 22.5 31.8
Consolidated earnings before taxes 20.0 12.2 63.7
Consolidated net income1) 21.3 9.0 138.0
Earnings per preference share in ? 2.38 1.01 135.6
Investments 34.9 16.6 109.9

 

HORNBACH HOLDING AG Group Nine Months Nine Months Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 2,422.2 2,311.3 4.8
Gross margin as % of net sales 36.4% 35.7%  
EBITDA 220.4 204.6 7.7
EBIT 169.6 152.6 11.1
Consolidated earnings before taxes 146.0 123.5 18.3
Consolidated net income1) 113.1 87.1 29.8
Earnings per preference share in ? 11.45 8.82 29.8
Investments 78.4 81.5 (3.8)

 

Misc. key figures of the HORNBACH HOLDING AG Group November 30, 2010 February 28, 2010 Change
(in ? million, unless otherwise stated)     %
Total assets 2,285.1 2,032.9 12.4
Shareholders' equity 971.8 861.5 12.8
Shareholders' equity as % of total assets 42.5% 42.4%  
Number of employees 13,635 13,214 3.2

 

 

HORNBACH-Baumarkt-AG subgroup 3rd Quarter 3rd Quarter Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 712.7 663.5 7.4
of which: in other European countries 299.7 275.8 8.7
Like-for-like sales growth2) 4.3% 1.4%  
Gross margin as % of net sales 36.6% 36.0%  
EBITDA 31.2 24.4 27.7
Earnings before interest and taxes (EBIT) 18.0 11.7 53.3
Consolidated earnings before taxes 12.2 6.4 90.6
Consolidated net income 11.2 4.7 138.1
Basic earnings per share in ? 0.70 0.30 133.3
Investments 18.0 14.9 20.8

 

HORNBACH-Baumarkt-AG subgroup Nine Months Nine Months Change
(in ? million, unless otherwise stated) 2010/2011 2009/2010 %
Net sales 2,267.9 2,166.4 4.7
of which: in other European countries 953.1 890.6 7.0
Like-for-like sales growth2) 1.8% 1.6%  
Gross margin as % of net sales 37.2% 36.4%  
EBITDA 174.8 160.2 9.1
Earnings before interest and taxes (EBIT) 135.5 120.1 12.9
Consolidated earnings before taxes 123.6 103.8 19.1
Consolidated net income 91.5 73.2 25.0
Basic earnings per share in ? 5.75 4.64 23.9
Investments 45.1 57.2 (21.1)

 

Misc. key figures of the HORNBACH-Baumarkt-AG subgroup November 30, 2010 February 28, 2010 Change
(in ? million, unless otherwise stated)     %
Total assets 1,643.0 1,439.4 14.1
Shareholders' equity 742.9 654.7 13.5
Shareholders' equity as % of total assets 45.2% 45.5%  
Number of stores 132 131 0.8
Sales area in 000 mē (based on BHB) 1,497 1,480 1.1
Number of employees 13,024 12,640 3.0

 

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.

 



Download: Interim Report Q3/9M 2010/2011 HORNBACH HOLDING AG Group (pdf)
Download: Press Release Q3/9M 2010/2011 (pdf)
Download: Interim Report Q3/9M 2010/2011 HORNBACH-Baumarkt-AG Group (pdf)