Hornbach Holding AG & Co. KGaA
/ Key word(s): 9 Month figures/Quarterly / Interim Statement
"There is still very great demand at DIY stores!" Hornbach Group maintains growth course in first nine months of 2020/21: Nine-month consolidated sales rise 20.2 % to Euro 4.5 billion / Adjusted EBIT increases 67.2 % to Euro 401.5 million / Annual forecast confirmed despite lockdown risks
At Hornbach Baumarkt AG, the largest operating subgroup (DIY retail) which operated a total of 161 DIY megastores with garden centers and online shops in nine European countries as of November 30, 2020, net sales grew by 20.7 % to Euro 4,224.2 million in the nine-month period (2019/20: Euro 3,499.3 million). On a like-for-like basis and net of currency items, the DIY stores and garden centers generated sales growth of 19.5 % (2019/20: plus 7.1 %). Net sales at the HORNBACH DIY stores and online shop in Germany rose by 24.5 % to Euro 2,219.4 million in the first nine months of 2020/21 (2019/20: Euro 1,782.1 million). On a like-for-like basis, sales in Germany grew by 24.6 % (2019/20: 6.2 %). In the eight countries outside Germany ("Other European Countries"), net sales rose by 16.7 % to Euro 2,004.8 million (2019/20: Euro 1,717.2 million). The international share of sales at the Hornbach Baumarkt AG subgroup therefore amounted to 47.5 % (2019/20: 49.1 %). Net of currency items, like-for-like sales in Other European Countries increased by 14.3 % (2019/20: 8.1 %). Due to the coronavirus pandemic, the online business gained further momentum and grew by around two thirds across the Group in the first nine months of the financial year. "Compared with other sector players, Hornbach has generated above-average growth in the current year. During the coronavirus crisis it has been more important than ever to provide our customers with the best possible supply based on our closely interlinked stationary and online businesses, also at times when there have been restrictions on sales. We owe this to our employees, who have shown great dedication and impressive success in handling customers' needs even in the more difficult circumstances due to the pandemic", comments Erich Harsch, CEO of Hornbach Baumarkt AG. As a sign of its appreciation, the company has distributed one-off coronavirus bonuses to employees in all regions in the current financial year. "We are all aware of the great difficulties faced by many businesses and institutions. When making the one-off payments to employees, we explicitly asked them to support companies in their local areas that have been hit hard by the impact of the coronavirus pandemic. Solidarity is more important than ever during this crisis", he adds. Disproportionate growth in operating earnings Together with improved cost ratios, the highly dynamic sales performance in the 2020/21 financial year led to a substantial increase in adjusted EBIT at the Hornbach Group. EBIT adjusted to excluded non-operating earnings items (adjusted EBIT) increased by 59.9 % to Euro 66.9 million in the third quarter of 2020/21 (2019/20: Euro 41.8 million) and by 67.2 % to Euro 401.5 million in the first nine months of 2020/21 (2019/20: Euro 240.2 million). Nine-month earnings per share grew year-on-year to Euro 13.72 (2019/20: Euro 8.02). On the level of the Hornbach Baumarkt AG subgroup, nine-month adjusted EBIT rose by 79.2 % to Euro 359.8 million in 2020/21 (2019/20: Euro 200.9 million). Earnings per Baumarkt share are reported at Euro 7.50 (2019/2020: Euro 3.72). The Hornbach Immobilien AG subgroup contributed adjusted EBIT of Euro 43.7 million to group earnings (2019/20: Euro 43.1 million). The Hornbach Baustoff Union GmbH subgroup (HBU), which currently operates 34 builders' merchant outlets in south-western Germany and two outlets close to the border in France (Lorraine), also reported pleasing growth. Nine-month sales here rose by 13.5 % to Euro 277.8 million (2019/20: Euro 244.8 million). HBU generated adjusted EBIT of Euro 10.0 million (2019/20: Euro 5.5 million). Lockdown has intensified consumers' basic need to improve their surroundings "We can count ourselves very lucky with our business performance to date. At the end of the day, this also reflects the marked change in consumer behavior since the onset of the pandemic. Making sure that life in your own four walls is as attractive and safe as possible has become a key focus. There is a great need for DIY products and advice - not just because a tap is dripping or an electric appliance is broken and needs repairing, but because home improvement offers a meaningful occupation when consumers are in crisis mode and have few alternatives available", explains Albrecht Hornbach, CEO of Hornbach Management AG. The hard lockdown imposed in Germany and other countries in December had once again clearly revealed people's great need for DIY. According to Hornbach, the announcement that DIY stores would close to the general public had triggered a wave of last-minute purchases. "We nevertheless expect a backlog of demand to build up in households. Politicians should consider allowing system-relevant DIY stores and garden centers to meet their public supply responsibilities, while complying with the highest safety standards, in the foreseeable future once again", remarks Albrecht Hornbach. Board of Management confirms full-year forecast for 2020/21 despite higher coronavirus risks Looking ahead to developments in the final quarter of 2020/21 (December 1, 2020 to February 28, 2021), in its quarterly statement published today the Hornbach Group has upheld its annual forecast, and that despite increased coronavirus-related risks, based on the measures known of at the editorial deadline on December 21, 2020. The nationwide restrictions on sales in Germany (December 16, 2020 to January 10, 2021), the Netherlands (December 15, 2020 to January 19, 2021), Austria (December 26, 2020 to at least January 17, 2021), and Slovakia (December 19, 2020 to January 10, 2021) affect a total of 129 stores. At many locations, however, sales to commercial customers and tradespeople are still possible, as are the reservation and collection or delivery of reserved goods. Christmas tree sales are also still permitted in Germany and Slovakia. Germany, Austria, and the Netherlands posted an exceptionally positive sales performance in December 2020 through to the beginning of the hard lockdown and most recently witnessed massive volumes of purchases being brought forward. Other countries also reported significantly higher customer demand during the month compared with the same period last year. Based on the conditions currently known of in the countries in which it operates, Hornbach does not expect to see any reduction in December sales despite the restrictions on sales activities. Albrecht Hornbach: "Ultimately, the crucial question is when we are allowed to reopen the stores now closed to private customers after the new year. Previous experience shows that a good share of the sales we lose due to store closures can be offset thanks to substantial volumes of catch-up purchases and thanks to strong growth in other regions and our online retail business." The Board of Management believes that the negative impact of the lockdown measures known of to date on the sales and earnings performance of the Hornbach Group will be on a scale that will most likely still be covered by the existing forecast range. Consolidated sales (2019/20: Euro 4.7 billion) are therefore still expected to show growth in a corridor of between plus 13 % and plus 17 %. Depending on the extent of potential coronavirus-related effects, the Board of Management expects adjusted EBIT (2019/20: Euro 227 million) to range between Euro 290 million and Euro 360 million. The forecast is confirmed based on the assumption that there are no significant extensions or intensifications in restrictions on sales over and above those already announced or any additional lockdowns affecting DIY stores and garden centers in further countries in the remainder of the fourth quarter of 2020/21. Note: The financial reports 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/FinancialReports.
Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on Euro 000s. 1) Excluding currency items Contact: Axel Mueller Group Communications and Investor Relations Director HORNBACH Holding AG & Co. KGaA Tel. +49 (0) 6348 602444 axel.mueller@hornbach.com
22.12.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Hornbach Holding AG & Co. KGaA |
Hornbachstraße 11 | |
76879 Bornheim | |
Germany | |
ISIN: | DE0006083405 |
WKN: | 608340 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1156760 |
End of News | DGAP News Service |
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1156760 22.12.2020