HORNBACH Baumarkt AG: 2019/20 earnings forecast raised after significant third-quarter earnings growth

2019/20 earnings forecast raised after significant third-quarter earnings growth

Bornheim bei Landau, December 10, 2019.
The earnings position of the Hornbach Baumarkt AG Group showed a significant year-on-year improvement in the third quarter of 2019/20 (September 1 to November 30, 2019). Based on preliminary figures, net sales rose by 4.8% to nearly Euro 1,055 million (2018/19: Euro 1,006 million), while operating earnings adjusted for non-operating items (adjusted EBIT) grew from Euro 4 million in the previous year’s quarter to more than Euro 29 million. Earnings before taxes (EBT) for the same period increased from Euro 1.4 million to around Euro 15 million. This very pleasing earnings performance in Q3 2019/20 was due in particular to like-for-like sales growth achieved in Germany and abroad over and above the previous year’s already high level of sales, as well as to improved cost ratios.

Key figures for the first nine months of 2019/20 developed as follows: Net sales rose by 7.5% to around Euro 3.50 billion (2018/19: Euro 3.26 billion), while adjusted EBIT grew by almost 50% to around Euro 200 million (2018/19: Euro 134.3 million). Nine-month EBT increased by nearly 27% to around Euro 157 million (2018/19: Euro 124.2 million).

The significant earnings growth for the third quarter and cumulatively for the first nine months makes it more likely that full-year earnings for the 2019/20 financial year will exceed recent expectations. Despite potential weather-related fluctuations and macroeconomic risks in the fourth quarter of 2019/20 (December 1, 2019 to February 29, 2020), the earnings forecast of the Hornbach Baumarkt AG Group for the 2019/20 financial year has been raised. Adjusted EBIT (2018/19: € 81.9 million) is now expected to show growth in a medium to upper double-digit percentage range (previously: “by more than 40%”).

The sales forecast for the 2019/20 financial year was confirmed. Consolidated sales are thus still expected to increase in a medium to upper single-digit percentage range.

Details about the sales and earnings performance will be published in the Statement on the Third Quarter of 2019/20 on December 19, 2019 (www.hornbach-group.com).

HORNBACH Baumarkt AG
The Board of Management