HORNBACH Holding AG & Co. KGaA
/ Key word(s): Annual Report/Annual Results
Hornbach reports record results in 2021/22 – ongoing high demand in spring season 2022/23
Table 1: Key figures HORNBACH Holding AG & Co. KGaA Group
1) Excluding currency items; including Bodenhaus and online sales
Bornheim (Palatinate), Germany, May 17, 2022.
"The second year of Covid has continued to be enormously challenging for all of us. But the good news is that the trend of homing and cocooning is still intact even after restrictions have been lifted. We have succeeded once again in seizing the opportunities that have arisen from the crisis and are emerging even stronger from the situation. This is due to three very central success factors: Our long-standing digitization and interconnected retail strategy which is leading across the competition, our flexible logistics concept including forward-looking stocking, as well as the relentless commitment of our almost 25,000 employees”, commented Albrecht Hornbach, CEO of Hornbach Management AG.
In the 2021 calendar year Hornbach Baumarkt outperformed the German DIY sector and increased market share from 14.0% to 15.1%. Outside Germany market shares rose in the Netherlands, Austria and Switzerland according to the data available from GfK3). “We grew significantly faster than the market, and this is also reflected very pleasingly in our market shares. In Germany, we were the only major DIY chain to achieve a further increase in sales following the strong performance of the sector in 2020”, elaborated Erich Harsch, CEO of Hornbach Baumarkt AG.
Significant rise in earnings – proposed increase in dividend
Profitability (adj. EBIT margin) at the DIY stores in Germany increased from 3.1% to 3.3%. The Other European Countries region gained further ground at an already high level and increased its adjusted EBIT margin to 8.2% (2020/21: 8.0%). Hornbach Immobilien subgroup reported an adjusted EBIT of EUR 53.7 million (2020/21: EUR 55.8 million) and Hornbach Baustoff Union subgroup improved adjusted EBIT from EUR 9.0 million in the previous year to EUR 13.0 million in 2021/22.
Cash flow from operating activities on Group level amounts to EUR 344.9 million (FY 2020/21: EUR 346.5 million). Higher inflows from the strong earnings performance were countered by increased working capital requirements in preparation for the spring season due to the challenges in the global supply chain. With EUR 178.6 million, the Hornbach Group’s investments were around 16% higher in the FY 2021/22 compared to the previous year reflecting mainly the accelerated physical expansion with 5 store openings across Europe and 4 store openings planned in FY 2022/23. Free cash flow after investing activities and dividends was reported at EUR 134.5 million (FY 2020/21: EUR 168.2 million).
Hornbach expects ongoing high demand, but profitability to be impacted by external challenges
For the FY 2022/23 as a whole, Hornbach Group expects net sales to come in slightly above the level of FY 2021/22 (EUR 5,875 million). EBIT excluding non-operating earnings items (adjusted EBIT) is expected to fall slightly short of the strong FY 2021/21 result (EUR 362.6 million) reflecting geopolitical uncertainties and price increases for products and services.
“The business environment remains volatile which significantly hinders a precise outlook for the FY 2022/23. While we consider further Covid-related store closures unlikely, the challenges with regard to inflation, supply chain challenges and product availability have further increased in recent months. Our teams are working hard to ensure good product availability for our customers at reasonable prices. We remain firmly committed to our price leadership across markets and closely monitor external developments”, stressed Karin Dohm, CFO of Hornbach Management AG. “On positive note, customer demand remains strong and the need for energy efficient renovations has become more pressing with rising energy prices and the transition to a renewable energy, low-carbon economy”.
Table 2: Miscellaneous key figures HORNBACH Holding AG & Co. KGaA Group
3) GfK definition: DIY stores bigger than 1,000 sqm; Data available for Germany, Netherlands, Austria, Switzerland and Czech Republic
4) of which 165 HORNBACH DIY stores with garden centers and two BODENHAUS outlets
5) Sales area BHB: Closed building (warm or cold): 100%; covered open space (cold): 50%; building material drive-in (cold): 50%; non-covered open space (cold): 25%.
6) Number of employees as of February 28, including passive employees
HORNBACH Group is an independent, family-run DIY group under the umbrella of HORNBACHH Holding AG & Co. KGaA, which is listed on the Frankfurt Stock Exchange and represented in the SDAX. The largest subsidiary, HORNBACH Baumarkt AG, operates 167 DIY megastores with garden centers as well as two specialist stores and online stores in nine European countries. The Group also includes HORNBACH Baustoff Union, a regional builders' merchant company with 37 locations in southwestern Germany and France, as well as HORNBACH Immobilien AG, which develops retail real estate for the Group. In the financial year 2021/22 (reporting date: February 28, 2022), the HORNBACH Group generated net sales of EUR 5.9 billion, making it one of the five largest DIY and garden retail companies in Europe. The Group has a workforce of around 25,000 employees.
HORNBACH Holding on Linkedin
17.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||HORNBACH Holding AG & Co. KGaA|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1353733|
|End of News||DGAP News Service|