DGAP-News: Hornbach Holding AG & Co. KGaA / Key word(s): Final Results/Forecast
Hornbach Group meets earnings forecast
2017/18 Annual Report published: Consolidated sales grow by 5.1 % to Euro 4.14 billion in 2017/18 financial year / Stable operating earnings strength despite high volume of digitization expenses / Adjusted operating earnings (EBIT) rise by 3.7 % to Euro 166 million
"We are convinced that these substantial investments in dovetailing our stationary stores and online retail business are not just an option, but rather a necessity to enable us to satisfy customers' ever more sophisticated expectations in the digital age", commented Albrecht Hornbach, Chief Executive Officer of Hornbach Management AG, general partner of Hornbach Holding AG & Co. KGaA, when presenting the annual results in Frankfurt.
Multichannel meant having technology on a par with the leading online pure players. Albrecht Hornbach added: "This way, we can even more effectively exploit our unassailable advantage - the ability to offer a stationary shopping experience with professional specialist advice at excellently located and generously dimensioned stores."
Hornbach is the most productive of Germany's top-ten DIY store operators
"We can only afford this because our stationary business is successful and profitable. That enables us to finance the high costs needed to upgrade our technology and nevertheless present robust results", stressed Albrecht Hornbach. Sector statistics showed that the Hornbach Baumarkt AG subgroup generated by far the strongest growth among Germany's ten largest DIY store operators in the past year. Not only that, it further extended its lead as the most productive DIY store operator among the top ten. Based on its own information, Hornbach's net sales of Euro 2,135 per square meter of sales area are around 60 % ahead of the relevant average figure for the competition.
The Hornbach Group met its sales and earnings forecasts for the past financial year. As already communicated in the trading statement on March 22, 2018, net sales at the Hornbach Group in the 2017/18 financial year grew by 5.1 % to Euro 4,141 million. Hornbach Baumarkt AG, the largest operating subgroup, increased its overall sales by 4.9 % to Euro 3,891 million and its like-for-like sales net of currency items by 3.6 %.
Earnings slightly up on previous year
Hornbach also increased its earnings compared with the previous year. EBIT adjusted to exclude non-operating one-off items - the indicator of the Group's operating earnings strength - rose by 3.7 % to Euro 165.6 million. This growth was driven above all by the dynamic sales performance in conjunction with a stable gross margin and improved cost ratios for store operations and pre-opening expenses. Consolidated operating earnings rose by 2.8 % to Euro 161.2 million. Operating earnings include non-operating one-off charges on earnings, mainly relating to impairments and provisions, of Euro 7.2 million (2016/17: Euro 6.4 million). These were partly offset by non-operating income of Euro 2.7 million mainly resulting from the disposal of real estate no longer required for operations and write-ups (2016/17: Euro 3.4 million). Consolidated net income before minority interests rose by 6.5 % to Euro 95.7 million, leading to earnings per share of Euro 5.11 (2016/17: Euro 4.84).
In its dividend policy, Hornbach is adhering to its principle of continuity. The general partner and the Supervisory Board of Hornbach Holding AG & Co. KGaA will be proposing a dividend of Euro 1.50 for each no-par ordinary bearer share in the KGaA with dividend entitlement, and thus unchanged on the previous year, for approval by the Annual General Meeting on July 6, 2018. At Hornbach Baumarkt AG, the proposed dividend of Euro 0.68 per share is also unchanged on the previous year.
In the current 2018/19 financial year, the Hornbach Group intends to continue investing heavily in digitizing its business in order to expand its strategic competitive position in the European DIY market. "Here, it is about finding a healthy balance between safeguarding our earnings strength on the one hand and securing our future operating capacity on the other, and about doing this in a way that strengthens our business in the long term", commented Albrecht Hornbach. Against this backdrop, the Group aims to achieve sales growth in a medium single-digit percentage range in 2018/19 and to maintain its EBIT adjusted for non-operating earnings items at around the previous year's level.
Key figures of the Hornbach Group (Hornbach Holding AG & Co. KGaA Group)
Differences due to figures being rounded up or down; percentage changes calculated on basis of Euro 000s.
1) Adjusted to exclude non-operating income and expenses
Group Communications and Investor Relations Director
HORNBACH Holding AG & Co. KGaA
Tel. +49 (0) 6348 602444
|Company:||Hornbach Holding AG & Co. KGaA|
|Le Quartier Hornbach 19|
|67433 Neustadt an der Weinstraße|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|