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2008/2009 Trading Statement: Group with growth in Germany and Abroad
- Sales at overall Group rise by 5.1 % to ¤ 2.75 billion
- DIY
stores with garden centers post like-for-like growth of 1.4%
- HORNBACH clearly outperforms competition in Germany
- Four new stores opened in 2008/2009 financial year
Key Figures: HORNBACH HOLDING 2008/2009 2007/2008 Change
AG Group
(in ¤ million, unless Financial Financial like-for-like
otherwise stated) Year Year in % (%)
Net sales at overall Group 2,752 2,617 5.1
Net sales of
HORNBACH-Baumarkt-AG subgroup 2,599 2,469 5.2 1.4
of which: Germany 1,534 1,507 1.8 1.2
of which: other European 1.7
countries 1,065 962 10.6
Net sales of HORNBACH Baustoff
Union GmbH subgroup 153 149 2.8
Number of DIY stores 129 125 3.2
Sales area as per BHB (in
thousand m²) 1,447 1,385 4.4
Average DIY store size (in m²) 11,215 11,079
Neustadt/Weinstrasse, March 18, 2009.
The HORNBACH Group, one of Europe's largest operators of DIY
megastores with garden centers, successfully defied the difficult
macroeconomic climate in the past financial year (March 1, 2008 to
February 28, 2009) and increased its overall sales, as well as its
like-for-like sales, both in Germany and abroad. Based on preliminary
figures published today, consolidated (net) sales at HORNBACH HOLDING
AG grew by 5.1% to ¤ 2,752 million (previous year: ¤ 2,617m). The
HORNBACH-Baumarkt-AG subgroup, which operates 129 DIY megastores with
garden centers in nine countries across Europe (previous year: 125),
improved its net sales, including those at its four newly opened
stores, by 5.2% to ¤ 2,599 million (previous year: ¤ 2,469m).
International activities accounted for 41% of sales (previous year:
39%). Excluding newly opened stores, sales at the DIY megastores with
garden centers rose by 1.4%.
"We are especially proud of our like-for-like sales growth of 1.2% in
Germany", commented Albrecht Hornbach, Chairman of the Board of
Management of HORNBACH HOLDING AG. "While expansion-adjusted sales in
the DIY sector as a whole switched into reverse, HORNBACH moved
clearly forwards in the past financial year. We have now extended our
lead over the competition to more than four percentage points, a huge
figure by the standards of the retail sector. This indicates the
trust customers place in our concept."
Net sales at the DIY megastores with garden centers in Germany grew
by 1.8% to ¤ 1,534 million (previous year: ¤ 1,507m). Based on sales
volumes at all DIY and home improvement stores in Germany (2008:
¤ 21.6 billion gross), HORNBACH's domestic market share rose from
8.3% to 8.5%. The international HORNBACH stores, which formed the
focus of the Group's expansion, latched seamlessly onto the
successful business performance seen in the previous year, raising
their sales by 10.6% from ¤ 962 million to ¤ 1,065 million. The share
of the DIY subgroup's sales generated at the international stores
exceeded the 40% mark for the first time in the year under report,
amounting to 41.0% at the end of the year (previous year: 39.0%).
The HORNBACH Baustoff Union GmbH subgroup improved its net sales by
2.8% to ¤ 153 million (previous year: ¤ 149m).
Like-for-like sales growth in Germany and abroad
(Year-on-year change in sales volumes in percent)
2008/2009 Financial 1st Quarter 2nd Quarter 3rd Quarter 4th Total
Year Quarter
(March 1 to
February 28)
Group 1.5 3.0 2.3 -1.8 1.4
Germany 0,6 2.8 1.9 -0.9 1.2
Other European
countries 3.0 3.2 3.0 -3.2 1.7
Note: due to a retrospective correction in the calculation of
like-for-like sales at the international stores, the percentage
figures for other European countries and for the Group have increased
in some cases compared with the figures stated in the interim reports
for 2008/2009. The figures originally reported for other European
countries were 2.9% (Q1), 1.7% (Q2) and 0.8% (Q3). For the Group, the
figures originally reported were 2.4% (Q2) and 1.5% (Q3).
Like-for-like sales at the HORNBACH-Baumarkt-AG subgroup, i.e.
excluding sales at newly opened stores, increased by 1.4% in the
2008/2009 financial year (previous year: minus 0.2%). Unlike in the
previous year, which was characterized by starkly disparate
performances in Germany and abroad, in 2008/2009 the domestic stores
also contributed to this like-for-like sales growth.
Cumulatively for the twelve month period as a whole, HORNBACH
improved its like-for-like sales in Germany by 1.2% (previous year:
minus 3.6%). In a relatively weak competitive environment in the
domestic market and following a subdued start to the season,
like-for-like sales showed very pleasing growth rates of 2.8% and
1.9% in the second and third quarters of the financial year. This was
all the more pleasing given that inflation in Germany reached its
highest level for many years in the summer months of 2008, thus
eroding consumers' purchasing power. "Having said this, the sharp
rise in energy prices also had positive aspects for us. Ever more
customers were open to the topic of energy saving in their houses and
apartments", added Albrecht Hornbach. The HORNBACH Group has
positioned itself in precisely this area with a broad product range
and professional advice unmatched by any other player in the sector.
"The energy-saving product ranges harbor enormous potential."
With its focus on project customers, HORNBACH's concept also proved
its worth as the financial and economic crisis intensified. Sales in
Germany maintained their growth course in the months of December 2008
and January 2009. The fact that like-for-like sales in the fourth
quarter were 0.9% down on the previous year's figure was, according
to Albrecht Hornbach, solely due to there being one shopping day
fewer and to the significantly more severe winter in February 2009.
"We have not yet seen any signs of consumers curtailing their
spending due to the crisis. We do not know what the coming months
will bring, but there are numerous indications that people pay more
attention to their own four walls during a recession and invest in
enhancing the appearance and energy efficiency of their homes. All in
all, the omens for our business are by no means bad", commented
Albrecht Hornbach.
Further increase in sales at international stores
At its stores outside Germany, HORNBACH succeeded in surpassing the
high volume of sales already achieved in the past for the tenth year
in succession in the 2008/2009 financial year as a whole.
Like-for-like sales at these stores grew by 1.7% (previous year:
6.0%). In terms of their performance in the first three quarters,
these stores proved relatively immune to the downturn in consumer
confidence across Europe driven by the sharp rise in costs of living
and fears of recession. Like-for-like sales improved by around 3% on
average over this period. Due to negative seasonal factors in
February 2009, comparable store sales outside Germany also declined
in the fourth quarter (minus 3.2%). For the 2008/2009 financial year
as a whole, however, HORNBACH more than compensated for this slowdown
thanks to its pleasing growth rates in the first nine months.
"Should the economic crisis suddenly hit home in the retail sector,
then I see HORNBACH as being optimally prepared. HORNBACH offers
people a customized range of products and services for their
building, renovation and garden projects. Our combination of
large-scale sales areas, broad product range, professional advice,
accompanying support services and permanently low prices will find
acceptance among consumers, even more so in times of crisis," added
Albrecht Hornbach confidently.
Four new HORNBACH DIY megastores and garden centers opened in
2008/2009
HORNBACH maintained its expansion in the 2008/2009 financial year,
opening four new DIY megastores with garden centers across the Group.
The first location in the Swedish capital of Stockholm (Botkyrka) was
opened in July 2008. The second store in Bucharest, Rumania, also
commenced operations in July. The Biel location was launched in
Switzerland in November 2008. The three new store openings outside
Germany were followed by a premiere in the Group's home market - the
first HORNBACH DIY megastore with a garden center in Hamburg opened
its doors in the Eidelstedt district at the end of January 2009.
Including the four newly opened stores, the HORNBACH Group operated a
total of 129 retail outlets as of February 28, 2009
(February 29, 2008: 125). The sales areas of the 92 stores in Germany
(previous year: 91) amounted to around 971,000 m². The 37 DIY
megastores with garden centers outside Germany (previous year: 34)
account for additional sales areas of around 476,000 m². The
international stores are distributed between Austria (11), the
Netherlands (8), Luxembourg (1), the Czech Republic (6), Switzerland
(4), Sweden (3), Slovakia (2) and Rumania (2). With total DIY sales
areas of around 1,447,000 m² at the Group, average sales areas per
store now amount to more than 11,200 m².
Following its takeover of two builders' merchants companies, HORNBACH
Baustoff Union GmbH operated a total of 21 outlets in south-western
Germany as of March 1, 2009.
The complete annual results figures for 2008/2009 and the outlook for
the 2009/2010 financial year, which began on March 1, 2009, will be
announced at the Annual Results Press Conference on May 27, 2009.
--- 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, Regulierter
Markt in Frankfurter Wertpapierbörse;
