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Hornbach Group maintains strong growth in second quarter of 2020/21 as well

Consolidated sales grow 20.2 % to Euro 3,132 million in first six months of 2020/21 / Adjusted EBIT rises 68.7 % to Euro 334.7 million / Forecast specified in greater detail

Bornheim, September 29, 2020. The Hornbach Group (Hornbach Holding AG & Co. KGaA Group) benefited once again in the summer months from consumers spending more time in their own four walls, a trend that has been intensified by the coronavirus pandemic. The temporary restrictions on DIY retail sales, which substantially reduced customer frequencies in some countries and regions at times in the spring quarter, have all been lifted since the beginning of May. At 22.7 %, the rate of growth in consolidated sales in the months from June to August was therefore even stronger than in the period from March to May (+17.8 %). Overall, consolidated sales for the first half of the financial year (March 1 to August 31, 2020) rose by 20.2 % to Euro 3,132.2 million (2019/20: Euro 2,605.9 million). Together with improved cost ratios, this dynamic sales growth led to a significant jump in earnings. In view of the ongoing pleasing earnings performance in the second quarter and a more positive assessment of the risks involved in the coronavirus pandemic, the company has now specified its full-year forecast in greater detail.

At Hornbach Baumarkt AG, the largest operating subgroup (DIY retail) which operated a total of 160 DIY megastores with garden centers and online shops in nine European countries as of August 31, 2020, like-for-like sales net of currency items grew by 20.6 % to Euro 2,949.0 million in the first half (2019/20: Euro 2,444.7 million). On a like-for-like basis and net of currency items, the DIY stores with garden centers generated sales growth of 19.4 % in the first six months.

Net sales at the HORNBACH DIY stores and online shop in Germany rose by 24.0 % to Euro 1,557.0 million in the first half of 2020/21 (2019/20: Euro 1,255.8 million). On a like-for-like basis, sales in Germany grew by 24.3 % (2019/20: 7.4 %). In the eight countries outside Germany (“Other European Countries”), net sales rose by 17.1 % to Euro 1,391.9 million (2019/20: Euro 1,188.9 million). The international share of sales at the Hornbach Baumarkt AG subgroup therefore amounted to 47.2 % (2019/20: 48.6 %). Net of currency items, like-for-like sales in Other European Countries increased by 14.4 % (2019/20: 9.2 %). Due to the coronavirus pandemic, the online business gained further momentum and grew by around two thirds in the first half of the year.

“Consumers still have significantly greater demand for DIY store products and are using our online shops more often than before the pandemic. We currently see no signs of an abrupt end to this consumer trend. But we have to remember that consumer confidence could also evaporate in such uncertain times”, commented Albrecht Hornbach, CEO of Hornbach Management AG.

The Hornbach Baustoff Union GmbH subgroup which currently operates 33 builders’ merchant outlets in south-western Germany and two outlets close to the border in France (Lorraine), increased its half-year sales by 13.8 % to Euro 182.4 million (2019/20: Euro 160.3 million).

Disproportionate growth in operating earnings

In conjunction with improved cost ratios, the highly dynamic sales performance led to a substantial increase in adjusted EBIT at the Hornbach Group. Operating earnings adjusted to excluded non-operating earnings items increased by 59.5 % to Euro 161.9 million in the second quarter of 2020/21 (2019/20: Euro 101.5 million) and by 68.7 % to Euro 334.7 million in the first half of 2020/21 (2019/20: Euro 198.4 million). The half-year adjusted EBIT margin improved year-on-year from 7.6 % to 10.7 %. Six-month earnings per share grew year-on-year to Euro 11.57 (2019/20: Euro 6.72).

On the level of the Hornbach Baumarkt AG subgroup, adjusted EBIT increased by 79.1 % to Euro 307.0 million in the first half of 2020/21 (2019/20: Euro 171.4 million). Earnings per Baumarkt share are reported at Euro 6.62 (2019/2020: Euro 3.35). The Hornbach Baustoff Union GmbH and Hornbach Immobilien AG subgroups contributed adjusted EBIT of Euro 5.7 million (2019/20: Euro 3.8 million) and Euro 29.4 million (2019/20: Euro 29.3 million) to group earnings.

Board of Management specifies full-year forecast for 2020/21 in greater detail

Looking to the second half, Albrecht Hornbach added: “We are more positive than before in our assessment of our ongoing operating performance in the international Hornbach network. Our assessment has also benefited from developments on the political level and the lessons learned in containing the coronavirus crisis. We are convinced that DIY retail, which demonstrated right at the peak of the crisis that stationary customer businesses can be responsibly organized with high safety standards, will most likely not be subject to any more widespread store closures. Having said that, we still face macroeconomic risks which could lead consumer confidence to take a knock.”

To account for this, the updated annual forecast published by way of ad-hoc announcement on August 10, 2020 has therefore been narrowed, with the lower limits being raised. Consolidated sales for the 2020/21 financial year are now expected to show growth in a corridor of between plus 8 % (previously: plus 5 %) and plus 15 % (2019/20: Euro 4.7 billion). Adjusted EBIT is expected to range between Euro 270 million (previously: Euro 230 million) and Euro 330 million (2019/20: Euro 227 million).

Third Sustainability Magazine published

The Hornbach Group has published its annual Sustainability Magazine in parallel with the Half-Year Report. Outside the statutory reporting framework, this offers space for topics that are important to the company, its employees, and customers. Readers can find out more, for example, about how Hornbach mastered the coronavirus crisis with great energy and innovative solutions, why sustainable products do not automatically have to be more expensive, and how Hornbach deals with the important commodity of timber.

Key Figures of the Hornbach Group for the 2nd Quarter and 1st Half Year at a Glance

Key figures of the
Hornbach Holding AG & Co. KGaA Group

(in Euro million, unless otherwise stated)
2nd Quarter 2020/212nd Quarter 2019/20Change
in %
1st Half 2020/211st half 2019/20Change
in %
Net sales1,555.11,267.522.73,132.22,605.920.2
Hornbach Baumarkt AG subgroup1,456.81,184.023.02,949.02,444.720.6
of which in Germany748.6601.724.41,557.01,255.824.0
of which in other European countries708.2582.321.61,391.91,188.917.0
Like-for-like sales growth (DIY)1)21.4%8.8% 19.4%8.3% 
of which in Germany24.1%8.0% 24.3%7.4% 
of which in other European countries1)18.6%9.6% 14.4%9.2% 
Net sales of Hornbach Baustoff Union GmbH subgroup97.983.117.8182.4160.313.8
Gross margin (as percentage of net sales)35.2%35.5% 35.6%35.9% 
EBIT162.2102.458.4335.6199.368.4
Adjusted EBIT161.9101.559.5334.7198.468.7
Earnings before taxes (EBT)150.390.566.0313.5175.578.6
Net profit 2)112.070.060.0235.0132.777.1
Earnings per share (Euro)5.513.5754.311.576.7272.2
Investments37.530.821.964.779.5(18.7)

Other key figures
Hornbach Holding AG & Co. KGaA Group
August 31, 2020February 29, 2020Change
in %
Shareholders’ equity as percentage of total assets44.4%42.7% 
Number of DIY stores with garden centers1601600.0
Sales area of DIY stores with garden centers in (in 000 m²)1,8901,8890.1
Number of employees22,93021,5056.6

Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on Euro 000s.

1) Excluding currency items

2) Including minority interests pursuant to IFRS

Download Press Release: PDF (329.69 kB)

Download Half-Year Financial Report Hornbach Group: PDF (307.43 kB)

Download Half-Year Financial Report Hornbach Baumarkt Subgroup: PDF (529.97 kB)

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Axel Müller
Head of Group Communications

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axel.mueller@hornbach.com

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HORNBACH Holding
Financial Update: 3rd Quarter of 2020/2021 as of November 30, 2020
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Financial Update: 3rd Quarter of 2020/2021 as of November 30, 2020

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