Hornbach Holding AG & Co. KGaA
/ Key word(s): Quarterly / Interim Statement
Hornbach posts record quarter
Consolidated sales grow by 17.8 % to Euro 1,577.0 million in first quarter of 2020/21 /
At Hornbach Baumarkt AG, the largest operating subgroup (DIY retail) which operated an unchanged total of 160 DIY megastores with garden centers and online shops in nine European countries as of May 31, 2020, like-for-like sales net of currency items grew by 17.5 % in the first three months.
Most Hornbach DIY stores with garden centers remained open to private and commercial customers throughout the coronavirus lockdown starting in mid-March 2020. Customer demand for DIY products at the stores that were open and the online shops was far higher than in the previous year's quarter. This significantly overcompensated for the severe downturn in sales at those stationary stores subject to restrictions on sales in the first quarter of 2020/21. Most of the stores temporarily closed were able to reopen in the course of April. Since early May 2020, customers have once again been able to shop at all Hornbach stores in Germany and abroad.
Net sales at the HORNBACH DIY stores in Germany rose by 23.6 % to Euro 808.4 million in the first quarter (2019/20: Euro 654.1 million). On a like-for-like basis, sales in Germany grew by 24.4 % (2019/20: plus 6.9 %). In the Other European Countries region, where the company's DIY business activities in eight countries outside Germany are pooled, sales rose by 12.7 % to Euro 683.7 million (2019/20: Euro 606.6 million). Due to the strong growth in the domestic business, the international share of sales at the Hornbach Baumarkt AG subgroup decreased from 48.1 % to 45.8 %. On a like-for-like basis and net of currency items, sales in other European countries increased by 10.3 %.
The Hornbach Baustoff Union GmbH subgroup which, having taken over one new location in Saarland as of March 1, 2020, currently operates 33 builders' merchant outlets in south-western Germany and two outlets close to the border in France (Lorraine), increased its sales by 9.5 % to Euro 84.5 million (2019/20: Euro 77.2 million).
In conjunction with more favorable cost ratios, the substantial sales growth led to a sharp increase in operating earnings (EBIT). The adjusted EBIT of the Hornbach Group improved by 78.4 % to Euro 172.8 million (2019/20: Euro 96.9 million). Earnings per Holding share rose by 92.4 % to Euro 6.06 (2019/20: Euro 3.15).
On the level of the Hornbach Baumarkt AG subgroup, adjusted EBIT increased by 90.2 % to Euro 160.0 million in the first quarter of 2020/21 (2019/20: Euro 84.1 million). Earnings per Baumarkt share came to Euro 3.45 Euro (2019/20: Euro 1.63).
Forecast for 2020/21 financial year remains unchanged for now
The full-year sales and earnings forecast for 2020/21 as published in the 2019/20 Annual Report continues to apply for now. In this respect, the Board of Management points to the ongoing considerable and hardly predictable macroeconomic risks resulting from the coronavirus crisis and to the risk of a renewed wave of infections, particularly in the second half of the 2020/21 financial year. In light of these risks, the company is currently upholding its previous assessment that consolidated sales for the 2020/21 financial year as a whole will approximately match the level reported for the 2019/20 financial year (Euro 4.7 billion) and that adjusted consolidated operating earnings (adjusted EBIT) will fall slightly short of the previous year's figure (Euro 227.0 million).
"Our outlook is under review. We will be watching very closely how the coronavirus crisis impacts on consumers, the economy, and the Hornbach Group in the months ahead. Should we avoid any more major setbacks in the period ahead, then I see an ever greater likelihood that we will raise our sales and earnings forecast", commented Albrecht Hornbach, CEO of Hornbach Management AG.
Note: The quarterly statements of Hornbach Holding AG & Co. KGaA and Hornbach Baumarkt AG can be downloaded from the "Publications" section of our website. Link: www.hornbach-group.com.
Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on Euro 000s.
Group Communications and Investor Relations Director
HORNBACH Holding AG & Co. KGaA
Tel. +49 (0) 6348 602444
26.06.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|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|
|EQS News ID:||1078475|
|End of News||DGAP News Service|