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Successful course maintained in third quarter of 2008/2009 as well:
- Overall Group boosts sales by 6.5% in first nine months
- Earnings
show significantly disproportionate growth
- Further increase in head start over competition
- Positive outlook confirmed for the 2008/2009 financial year
Bornheim bei Landau, December 22, 2008. The HORNBACH Group, one
of
Europe's largest operators of DIY stores and garden centers,
successfully maintained its growth course in the third quarter of the
2008/2009 financial year (September to November 2008).
Notwithstanding the downturn in confidence in the wake of the
financial and economic crisis, HORNBACH HOLDING AG boosted its
third-quarter sales by 6.1% to ¤ 688.5 million (previous year's
quarter: ¤ 648.7m). In the first nine months of the financial year
(March to November 2008), the parent company of the HORNBACH Group
increased its sales by 6.5% to ¤ 2.214 billion (¤ 2.078bn). Key
earnings figures showed disproportionate growth.
"So far, there is no sign of any lull in consumer demand at our
HORNBACH DIY megastores with garden centers", commented Albrecht
Hornbach, Chairman of the Board of Management of HORNBACH HOLDING AG.
"It is our clear profile as the top DIY store for projects and
innovation leader in our sector that makes us so successful, even in
more difficult economic times." The HORNBACH concept was primarily
based on good advice, high quality, an extensive product range, large
volumes of stock on hand, low and above all honest prices. "The most
important factors we can offer our customers are reliability and
confidence. It is these qualities that consumers honor most,
especially in times of crisis", stressed Albrecht Hornbach. This was
accompanied by the company's role as innovation leader. "We are the
pioneers in energy-saving projects for house and home, such as
insulating façades or roofs, or renewing windows. The combination of
these energy-saving product ranges with professional advice will
contribute disproportionately to our sales growth in future as well."
The DIY megastores with garden centers which represent the HORNBACH
Group's core business accounted for 94% of total sales. Sales at the
HORNBACH-Baumarkt-AG subgroup climbed by 6.4% to ¤ 644.2 million in
the third quarter (¤ 605.7m) and by 6.6% to ¤ 2.083 billion in the
first nine months (¤ 1.955bn).
In the third quarter, like-for-like sales (excluding newly opened
stores and extensions) rose by a further 1.5% at the Group as a
whole. This major key figure for the retail sector improved by 1.8%
in the first nine months. Like-for-like sales in Germany grew by 1.9%
in the third quarter and by 1.7% in the first nine months of the
financial year.
Market share acquired
According to the BHB sector association, comparable store sales at
all German DIY stores and garden centers fell by 2.2% in the first
three quarters of the 2008 calendar year, with the decline of 3.7% in
the first half being followed by growth of 0.9% in the third quarter.
HORNBACH, by contrast, outperformed the sector average for the first
nine months of the calendar year by almost five percentage points.
Based on its own assessment, HORNBACH also expects to have
outperformed the overall sector by a clear margin once more in
October and November. Germany's fourth-largest DIY store player has
thus further increased its market share, which amounted to 8.3% in
2007 (previous year: 8.1%).
Disproportionate earnings growth - High equity ratio
The earnings of the HORNBACH Group showed even more marked growth
than sales. Operating earnings (EBIT) at the overall Group for the
first nine months improved by 65.0% to ¤ 164.5 million (¤ 99.7m).
Third-quarter earnings grew by 67.9% to ¤ 22.6 million (¤ 13.4m). The
EBIT of the largest subgroup, HORNBACH-Baumarkt-AG, rose by 64.4% to
¤ 129.0 million in the first nine months (¤ 78.5m). In the third
quarter, this key figure more than doubled to ¤ 14.6 million
(¤ 6.2m).
This growth was chiefly driven by like-for-like sales growth in
Germany and abroad, coupled with a slight increase in the gross
margin and improved store cost efficiency. Moreover, the rise in
profits at the overall Group also benefited from earnings growth
already recorded in the real estate segment in the first two quarters
of the current 2008/2009 financial year.
HORNBACH stands on a solid financial foundation. The equity ratio of
the HORNBACH HOLDING AG Group amounted to 38.3% as of
November 30, 2008 (year-end reporting date on February 29, 2008:
36.1%). The equity ratio at the HORNBACH-Baumarkt-AG subgroup most
recently reached 40.7% (February 29, 2008: 38.2%). Thanks to a
substantial increase in cash and cash equivalents, the net financial
liabilities of the overall Group could be reduced within nine months
by ¤ 88 million to ¤ 495.3 million (February 29, 2008: ¤ 583.6m). Net
financial liabilities at the Baumarkt subgroup dropped by more than
¤ 100 million to ¤ 188.4 million (February 29, 2008: ¤ 289.3m).
More than 500 new jobs
HORNBACH continues to act as a job machine even in difficult economic
times. The Group had 13,255 employees across Europe as of
November 30, 2008, equivalent to 545 or 4.3% additional positions
since the beginning of the financial year (12,710 employees). As a
result of the lower number of new store openings (three, as against
five in the previous year), the investments made by the overall Group
in the first nine months declined from ¤ 152.8 million in the
previous year to ¤ 100.5 million. In the current financial year to
date, HORNBACH has opened three new stores in Bucharest, Stockholm
and Biel/Switzerland. The company thus now operates 128 DIY
megastores with garden centers in nine European countries, of which
91 stores are in Germany. The international share of sales at the
HORNBACH-Baumarkt-AG subgroup has risen from 38.7% to 41.1%.
One further store opening is scheduled to take place by the end of
the current financial year (at the end of February). The DIY
megastore with a garden center in Hamburg-Eidelstadt, where shell
construction work has already been completed, will be the first
HORNBACH location in this North German city upon its opening on
January 28, 2009.
Forecast confirmed for 2008/2009
Notwithstanding the uncertainty surrounding future economic
developments, the HORNBACH Group is looking to the future with
confidence. "There are a number of imponderable factors, especially
with regard to how private consumer spending will develop in the
coming months. To date, however, we see no reason to scale down our
forecast for the overall 2008/2009 financial year", commented
Albrecht Hornbach. Accordingly, sales at the holding company and the
largest subgroup are both expected to grow in a medium single-digit
percentage range. Operating earnings (EBIT) are set to grow
considerably more rapidly than sales and to exceed the record figures
posted for the 2006/2007 financial year (¤ 119m at the HORNBACH
HOLDING AG Group and ¤ 96m at the HORNBACH-Baumarkt-AG subgroup).
Key Figures 3rd Quarter and First Nine Months 2008/2009
Key Figures of the HORNBACH HOLDING AG 3rd Quarter 3rd Quarter Change
Group
(in ¤ million, unless otherwise 2008/2009 2007/2008 in %
stated)
Net sales 688.5 648.7 6.1
of which in other European countries 271.2 240.5 12.8
Like-for-like sales growth (DIY) 1.5% -4.1%
Gross margin as % of net sales 34.8% 34.5%
EBITDA 40.4 33.8 19.4
EBIT 22.6 13.4 67.9
Consolidated earnings before taxes 14.4 3.8 -
Consolidated net income * 9.3 1.8 -
Earnings per preference share in ¤ 0.97 0.24 -
Investments 39.5 34.4 14.8
Key Figures of the HORNBACH HOLDING AG Nine Months Nine Months Change
Group
(in ¤ million, unless otherwise 2008/2009 2007/2008 in %
stated)
Net sales 2,214.0 2,077.9 6.5
of which in other European countries 855.9 756.8 13.1
Like-for-like sales growth (DIY) 1.8% 0.0%
Gross margin as % of net sales 35.5% 35.4%
EBITDA 217.2 157.4 38.0
EBIT 164.5 99.7 65.0
Consolidated earnings before taxes 139.3 73.5 89.4
Consolidated net income * 105.0 63.2 66.0
Earnings per preference share in ¤ 10.70 6.48 65.1
Investments 100.5 152.8 -34.2
Misc. Key Figures of the HORNBACH November 30, February 29, Change
HOLDING AG Group 2008 2008
(in ¤ million, unless otherwise in %
stated)
Total assets 2,041.5 1,902.0 7.3
Shareholders' equity 781.3 687.6 13.6
Shareholders' equity as % of total
assets 38.3% 36.1%
Number of employees 13,255 12,710 4.3
Key Figures of the 3rd Quarter 3rd Quarter Change
HORNBACH-Baumarkt-AG Group
(in ¤ million, unless otherwise 2008/2009 2007/2008 in %
stated)
Net sales 644.2 605.7 6.4
of which in other European countries 271.2 240.5 12.8
Like-for-like sales growth 1.5% -4.1%
Gross margin as % of net sales 35.6% 35.3%
EBITDA 28.6 23.4 22.5
EBIT 14.6 6.2 134.3
Consolidated earnings before taxes 11.5 1.0 -
Consolidated net income 7.7 0.5 -
Earnings per share in ¤ 0.49 0.03 -
Investments 25.9 20.1 28.9
Key Figures of the Nine Months Nine Months Change
HORNBACH-Baumarkt-AG Group
(in ¤ million, unless otherwise 2008/2009 2007/2008 in %
stated)
Net sales 2,083.3 1,955.0 6.6
of which in other European countries 855.7 756.7 13.1
Like-for-like sales growth 1.8% 0.0%
Gross margin as % of net sales 36.3% 36.0%
EBITDA 170.7 126.7 34.7
EBIT 129.0 78.5 64.4
Consolidated earnings before taxes 116.9 62.9 86.0
Consolidated net income 86.6 52.3 65.5
Earnings per share in ¤ 5.51 3.35 64.4
Investments 58.8 77.3 -23.9
Misc. Key Figures of the November 30, February 29, Change
HORNBACH-Baumarkt-AG Group 2008 2008
(in ¤ million, unless otherwise in %
stated)
Total assets 1,447.5 1,350.9 7.2
Shareholders' equity 589.6 515.7 14.3
Shareholders' equity as % of total
assets 40.7% 38.2%
Number of stores 128 125 2.4
Sales area in 000 m² (based on
BHB) 1,431 1,385 3.3
Average store size in m² 11,179 11,079 0.9
Number of employees 12,663 12,110 4.6
* pursuant to IFRS including minority interests.
Rounding up or down may lead to discrepancies between percentages and
totals. Calculation of percentage figures based on ¤ 000s.
About HORNBACH
The HORNBACH Group is one of Europe's largest operators of DIY
megastores with garden centers. In addition to the largest operating
subgroup, HORNBACH-Baumarkt-AG (DIY megastores with garden centers),
the overall HORNBACH HOLDING AG Group also comprises the subgroups
HORNBACH Baustoff Union GmbH (regional builders' merchant and
construction materials business) and HORNBACH Immobilien AG (real
estate and location development). The HORNBACH DIY megastores with
garden centers have an average size of more than 11,000 square
meters, a figure unmatched by any other competitor in Europe.
The HORNBACH Group generated sales of more than ¤ 2.6 billion in the
past 2007/2008
financial year (March 1, 2007 to February 29, 2008). This is
equivalent to growth of 2.9 % on the previous year. The company's
market share in Germany rose during the financial year from 8.1 % to
8.3 %. The 36 international stores contributed almost 40 % of total
DIY store sales.
Founded in 1877, the family-run company, which has its roots in the
Palatinate region, was first publicly listed in 1987. HORNBACH
currently operates 128 DIY megastores with garden centers in nine
countries, of which 91 stores are in Germany. The other countries are
Austria, the Netherlands, the Czech Republic, Switzerland, Sweden,
Slovakia, Luxembourg and, since June 2007, Rumania.
HORNBACH's sales concept and product range are entirely tailored to
the needs of project and professional customers. HORNBACH guarantees
its customers permanently low prices and is thus the price leader in
the sector. The high quality of advice and excellent service provided
by the company have been attested in numerous independent tests and
studies. HORNBACH was awarded the German Retail Prize in 2006 for the
management achievement of the year. Last year, Otmar Hornbach,
pioneer and founder of the DIY company, received the top prize
awarded by the Federal Association of German DIY, Home Improvement
and Specialist Garden Stores (BHB) - the "Life Time Award" - for his
life's achievement.
Pioneering achievements, such as the first combined DIY store with a
garden center (1968), the first megastore (1980) and the first DIY
store with a drive-in facility (2003), provide proof of HORNBACH's
ongoing innovative power. Since 2001, a strategic partnership has
been in place with the British retail group Kingfisher. HORNBACH has
acted as a "job machine" for decades, with more than 13,000
individuals now employed at the Group.
--- End of Message ---
HORNBACH HOLDING AG
Le Quartier Hornbach 19 Neustadt an den
Weinstraße Germany
WKN: 608343; ISIN: DE0006083439 ; Index: CDAX, Prime All Share,
SDAX;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Amtlicher
Markt in Frankfurter Wertpapierbörse;
