Ad-hoc announcement: Sales forecast met – Earnings held back by impairment losses
Neustadt an der Weinstrasse, March 22, 2016.
The HORNBACH Holding AG & Co. KGaA Group (HORNBACH Group) met its sales targets in the past 2015/2016 financial year (March 1, 2015 to February 29, 2016). Due to impairment losses, however, the Group fell slightly short of its earnings forecast. Excluding these non-operating one-off items, operating earnings would be clearly within the forecast corridor.
Based on its initial preliminary and unaudited findings for the consolidated financial statements, the Board of Management of the general partner (HORNBACH Management AG) expects full-year consolidated operating earnings (EBIT) at HORNBACH Holding AG & Co. KGaA for 2015/2016 to fall slightly short of the forecast threshold of € 140 million. This shortfall by more than 15% compared with the previous year’s figure of € 165.1 million is largely attributable to impairment losses of around € 4 million at the HORNBACH Baustoff Union GmbH subgroup.
The impairment losses result from an impairment test performed on the overall Group’s assets pursuant to IFRS accounting requirements (IAS 36). This was triggered by the fact that the stock market capitalization at the balance sheet date fell short of the book value of shareholders’ equity.
The impairment test also required at the HORNBACH Baumarkt AG subgroup resulted in an impairment loss requirement that nevertheless remained within the earnings forecast. The Board of Management still expects this subgroup’s EBIT, including non-operating one-off items, to fall short of the previous year’s figure of € 109.8 million by a maximum of 20%.
The sales forecast was met in full. After strong year-end business in the fourth quarter, net sales at the HORNBACH Group grew 5.1% to € 3,755 million, while sales at the HORNBACH Baumarkt AG subgroup rose 5.3% to € 3,535 million. HORNBACH will report in detail on its 2015/2016 sales performance in its separately published Trading Statement.
Details of the earnings performance and the annual financial statements of the HORNBACH Holding AG & Co. KGaA Group and the HORNBACH Baumarkt AG subgroup will be published at the Annual Results Press Conference on May 24, 2016.
HORNBACH Holding AG & Co. KGaA
represented by HORNBACH Management
Head of Group Communications
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