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- Sales grow by 4.8 percent in first half
- Operative earnings substantially up on previous year
Frankfurt/Neustadt a. d. W., September 30, 2009. Hornbach
continues
to grow: in the first half of the 2009 financial year, the Hornbach
Group (Hornbach Holding AG Group) boosted its net sales by 4.8
percent to ¤ 1.6 billion. Sales at the 130 DIY megastores with garden
centers at the largest operating subgroup, Hornbach-Baumarkt-AG,
in-creased by 4.4 percent to ¤ 1.5 billion.
As expected, the Group's operating earnings (EBIT) for the period
from March 1 to August 31, 2009 decreased to ¤ 130.1 million, down
8.1 percent on 2008. This was because the company posted a high
volume of non-operating real estate profits in the previous year,
whereas no significant disposal gains are budgeted for the current
year. Despite the difficult economic and competitive climate both in
Germany and in the company's eight other country markets across
Europe, Hornbach increased its earnings from operations alone by
13.6 percent. The company has thus posted a pleasing earnings
performance for the first half of its financial year.
Hornbach's growth was driven above all by the 92 DIY megastores with
garden centers in Germany, which boosted their like-for-like sales by
3.1 percent in the first half of the financial year (March 1 to
August 31, 2009). The Federal Association of German DIY, Home
Improvement and Specialist Garden Stores (BHB) reported a 1.1 percent
decline in like-for-like sales across the sector in the first six
months of the calendar year. By contrast, Hornbach's stores in
Germany achieved like-for-like sales growth of 1.3 percent over the
same period. Germany's fourth-largest DIY group has thus further
expanded its share of the German market.
Hornbach Baustoff Union GmbH also posted a strong performance.
Defying the clearly negative trend in the builders' merchant sector,
this subgroup increased its first-half sales by 11.1 percent overall
and by 4.1 percent on a like-for-like basis.
Shareholders' equity at the Hornbach Group grew by 9.3 percent to
¤ 852.9 million, or 39.9 percent of total assets. At the same time,
cash and cash equivalents rose from ¤ 275.2 million to
¤ 418.9 million. These figures underline the company's solid
financing policies, that focus on ensuring flexibility in managing
the company and safeguarding its liquidity.
Kundenmonitor customer survey confirms top position in DIY sector
"These pleasing figures encourage us to uphold our strategies of
quality leadership and permanent low prices. Hornbach caters to those
aiming to tackle building, renovation or garden projects", explained
Albrecht Hornbach, Chairman of the Board of Management of the
Hornbach Group. That was why the company was working continuously on
enhancing its combination of product range, permanent low prices and
advice tailored to customers' needs. Hornbach sees the company's
strategy as being confirmed by the results of the 2009 Kundenmonitor.
This representative annual survey of customer satisfaction in Germany
recently underlined Hornbach's leading position in the DIY sector
once again. German DIY customers thus awarded Hornbach top positions
both for quality and for its product range. "We are especially proud
of our top position among all DIY players in terms of specialist
advice", stressed Hornbach.
Sales at the Hornbach stores outside Germany grew by 5.2 percent to
¤ 614.9 million in the first half of the financial year. On a
like-for-like basis, these stores matched the previous year's high
figure. The international share of sales at the Baumarkt-AG subgroup
reached around 41 percent.
Hornbach will be opening one further store in Switzerland, in
Galgenen in the Zurich area, in the current financial year. The
company will then operate 92 stores in Germany and 39 in other
European countries. The stores have an average size of more than
11,250 square meters - according to Hornbach, this "warehouse
concept" with huge product ranges and the stocking of large
quantities is one of the secrets of the company's success.
Hornbach affirmed the forecast that the Group's sales would grow
year-on-year in a "low to medium single-digit percentage range" by
the balance sheet date on February 28, 2010. Notwithstanding its
current expansion, which can be described as conservative in the best
sense, the Hornbach Group will thus grow more rapidly than the DIY
sector as a whole.
Successful focus on projects
According to Albrecht Hornbach, one of the main reasons for the
company's success is its focus on "project customers" - where the
project in hand may involve building a garage or a garden pond,
assembling and installing a sauna, new flooring, an attic extension
or a bathroom renovation. This way, the company appeals to customers
on the lookout for an extensive product range, excellent product
quality, constant availability, and specialist advice. This is
reflected in the title of the current autumn - "Make it your own
project!"
The Hornbach Group invested ¤ 64.9 million in the first six months of
the financial year (6.4 percent more than in the previous year).
Investments were financed in full by the cash flow of ¤ 191.5 million
from operations. The total workforce grew by 1.3 percent to 13,342
employees, around 8,300 of which working in Germany and 5,000 abroad.
The most important key figures can be found below. The extensive
interim reports of Hornbach Holding AG and Hornbach-Baumarkt-AG have
been published in the investor relations section of the internet site
of the Hornbach Group at www.hornbach-group.de.
Overview of Key Figures for the 2nd Quarter / 1st Half of 2009/2010
HORNBACH HOLDING AG Group 2ndQuarter 2ndQuarter Change
(in ¤ million, unless otherwise stated) 2009/2010 2008/2009 %
Net sales 779.4 747.7 4.2
of which in other European countries 302.3 290.1 4.2
Like-for-like sales growth1) 1.9% 3.0%
Gross margin as % of net sales 35.7% 35.6%
EBITDA 88.4 92.0 (4.0)
EBIT2) 70.5 74.4 (5.2)
Consolidated earnings before taxes 60.8 66.3 (8.3)
Consolidated net income3) 41.1 49.8 (17.5)
Earnings per preference share in ¤ 4.15 4.92 (15.7)
Investments 26.1 25.8 1.3
HORNBACH HOLDING AG Group 1st Half 1st Half Change
(in ¤ million, unless otherwise stated) 2009/2010 2008/2009 %
Net sales 1,599.2 1,525.5 4.8
of which in other European countries 614.9 584.7 5.2
Like-for-like sales growth1) 1.7% 2.2%
Gross margin as % of net sales 36.0% 35.9%
EBITDA 165.5 176.4 (6.2)
EBIT2) 130.1 141.5 (8.1)
Consolidated earnings before taxes 111.2 124.8 (10.9)
Consolidated net income3) 78.2 95.7 (18.3)
Earnings per preference share in ¤ 7.84 9.76 (19.7)
Investments 64.9 61.0 6.4
Misc. Key Figures of the HORNBACH August 31, 2009 February 28, Change
HOLDING AG Group 2009
(in ¤ million, unless otherwise %
stated)
Total assets 2,139.6 1,995.8 7.2
Equity 852.9 780.5 9.3
Shareholders' equity as % of
total assets 39.9% 39.1%
Number of employees 13,342 13,169 1.3
HORNBACH-Baumarkt-AG Subgroup 2nd Quarter 2nd Quarter Change
(in ¤ million, unless otherwise
stated) 2009/2010 2008/2009 %
Net sales 728.1 699.8 4.0
of which in other European countries 302.2 290.0 4.2
Like-for-like sales growth1) 1.9% 3.0%
Gross margin as % of net sales 36.5% 36.4%
EBITDA 72.6 79.2 (8.3)
Earnings before interest and taxes 58.7 65.2 (10.0)
(EBIT)4)
Consolidated earnings before taxes 53.0 61.8 (14.3)
Consolidated net income 35.5 47.1 (24.7)
Basic earnings per share in ¤ 2.25 3.00 (25.0)
Investments 14.9 20.1 (26.1)
HORNBACH-Baumarkt-AG Subgroup 1st Half 1st Half Change
(in ¤ million, unless otherwise stated) 2009/2010 2008/2009 %
Net sales 1,502.9 1,439.0 4.4
of which in other European countries 614.9 584.6 5.2
Like-for-like sales growth1) 1.7% 2.2%
Gross margin as % of net sales 36.6% 36.6%
EBITDA 135.8 141.6 (4.1)
Earnings before interest and taxes
(EBIT)4) 108.3 113.9 (4.9)
Consolidated earnings before taxes 97.4 105.4 (7.6)
Consolidated net income 68.5 78.9 (13.1)
Basic earnings per share in ¤ 4.35 5.03 (13.5)
Investments 42.3 32.9 28.3
Misc. Key figures of the August 31, February 28, Change
HORNBACH-Baumarkt-AG Subgroup 2009 2009
(in ¤ million, unless otherwise %
stated)
Total assets 1,515.2 1,425.2 6.3
Equity 651.5 591.3 10.2
Shareholders' equity as % of total
assets 43.0% 41.5%
Number of stores 130 129 0.8
Sales area in 000 m² (based on BHB) 1,464 1,447 1.2
Number of employees 12,753 12,576 1.4
1) currency-adjusted.
2) net of non-operating earnings items, the operative EBIT of the
HORNBACH Group improved by 20.9% in the second quarter and by 13.6%
in the first half of 2009/2010.
3) pursuant to IFRS including minority interests.
4) net of non-operating earnings items, the operative EBIT at this
subgroup improved by 19.8% in the second quarter and by 11.5% in the
first half of 2009/2010.
Rounding up or down may lead to discrepancies between percentages and
totals. Percentages calculated on basis of ¤ 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 ¤ 2.75 billion in the past
2008/2009 financial year (March 1, 2008 to February 28, 2009). This
is equivalent to growth of 5.1 percent on the previous year. The
company's market share in Germany rose during the financial year from
8.3 percent to 8.5 percent. The 38 international stores contributed
41 percent 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 130 DIY megastores with garden centers in nine
countries, of which 92 stores are in Germany. The other countries are
Austria, the Netherlands, the Czech Republic, Switzerland, Sweden,
Slovakia, Luxembourg, and Romania.
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. A year later, 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.
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HORNBACH HOLDING AG
Le Quartier Hornbach 19 Neustadt an den
Weinstraße Germany
WKN: 608343; ISIN: DE0006083439 ; Index: CDAX, Prime All
Share;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Regulierter
Markt in Frankfurter Wertpapierbörse;
