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Pleasing start to 2009/2010 financial year
- Consolidated sales growth of 5.4 percent in 1st quarter
- German
stores post like-for-like growth of 3.1 percent and
contribute substantially
to pleasing business performance - Like-for-like growth of 1.5
percent at Group
- No real estate transactions - unlike in 1st quarter of
previous
year
- Pleasing operating earnings performance - adjusted EBIT rises
by
5.8 percent
- Forecast confirmed
Bornheim bei Landau, July 2, 2009. The
Hornbach Group, one of
Europe's largest
operators of DIY stores and garden centers, can report a successful
start to the 2009/2010 financial year. Despite the ongoing
unfavorable macroeconomic framework, the Group increased both its
sales and its operating earnings adjusted for one-off items in the
previous year. In the first quarter (March 1 to May 31, 2009), the
net sales of Hornbach Holding AG thus rose by 5.4 percent to ¤ 819.8
million (previous year: ¤ 777.7m). Sales at Hornbach-Baumarkt-AG, the
largest operating subgroup, rose by 4.8 percent to ¤ 774.8 million
(previous year: ¤ 739.2m). Like-for-like sales (excluding newly
opened stores) improved by 1.5 percent across the Group. This
development was chiefly due to the pleasing growth momentum seen in
Germany, where the DIY stores with garden centers reported growth of
3.1 percent. Hornbach's stores in other European countries virtually
maintained their level of like-for-like sales.
"In view of the ongoing difficult economic climate, we are very
satisfied with the results for the first quarter", commented Albrecht
Hornbach, Chairman of the Board of Management of Hornbach Holding AG.
"We attribute this positive performance not least to our clear
profile as the DIY store for projects in Europe and as an innovation
leader in the sector." The first-class quality of the company's
product ranges, its professional advice and consistent permanent low
price policy with no discount campaigns were appreciated by DIY
enthusiasts and professional tradesmen alike. In most regions where
Hornbach operates, demand for building, home improvement and garden
products and services had so far not been impeded by macroeconomic
uncertainties, or only to a marginal extent.
Adjusted operating earnings boosted by 5.8 percent
In line with expectations, due to a base effect involving
non-operating real estate gains in the previous year the earnings of
the Hornbach Group fell short of the figures for the equivalent
quarter in the previous year. Operating earnings (EBIT) reduced by
11.3 percent to ¤ 59.6 million (¤ 67.2m). Consolidated earnings
before taxes dropped by 13.9 percent to ¤ 50.4 million. Basic
earnings per preference share were reported at ¤ 3.72 (previous year:
¤ 4.87). Following adjustment for net non-operating earnings items of
¤ 10.8 million, however, the Group's earnings performance in the
first three months of the current financial year was nevertheless
pleasing. Adjusted operating earnings thus improved by 5.8 percent.
The company's consistent sales and earnings growth is particularly
apparent in the quarterly figures of Hornbach-Baumarkt-AG, the most
important operating subsidiary, as no non-operating real estate gains
were generated here in the previous year either. Net sales at the
Hornbach-Baumarkt-AG subgroup rose by 4.8 percent to ¤ 774.8 million
(previous year: ¤ 739.2m), while operating earnings (EBIT) grew by
2.0 percent to ¤ 49.6 million (previous year: ¤ 48.6m). Net income
for the period increased by 4.0 percent to ¤ 33.1 million (previous
year: ¤ 31.8m). Basic earnings per Baumarkt share amounted to ¤ 2.10
(previous year: ¤ 2.03).
Hornbach continues to act as a guarantor of safe jobs, even in
difficult times. In contrast to the overall trend, the number of
employees across the Group rose by 0.7 percent to 13,262.
The Hornbach Group invested a total of ¤ 38.8 million in the first
three months of the current financial year (previous year: ¤ 35.2m).
Of these funds, around 72 percent were invested in land and
buildings, while the remainder was mainly channeled into plant and
office equipment. Investments were financed in full from the
operating cash flow of ¤ 105.1 million (previous year: ¤ 116.7m).
Shareholders' equity at the Hornbach Holding AG Group improved by
5.1 percent to ¤ 820.5 million (February 28, 2009: ¤ 780.5m), while
the equity ratio continued to amount to a pleasing 39 percent.
Hornbach currently operates 130 DIY megastores with garden centers
across nine European countries. The average store size is in excess
of 11,000 m². There are 92 stores in Germany, while the international
stores are located in Austria (11), the Netherlands (8), the Czech
Republic (6), Switzerland (4), Sweden (3), Slovakia (2), Romania (3),
and Luxembourg (1).
Cautious optimism for the 2009/2010 financial year as a whole
Hornbach will maintain its course of expansion even in the current
crisis. Two new store openings are planned for the current financial
year. The third Hornbach store in Romania was already opened in
Brasov in March. The fifth store in Switzerland is expected to be
opened in Galgenen in the Zurich area in the fourth quarter
(December 1, 2009 to February 28, 2010). All in all, Hornbach expects
to generate sales growth in a low to medium single-digit percentage
range both on the level of the overall Group and of the
Hornbach-Baumarkt-AG subgroup in the current financial year.
"We expect our DIY stores with garden centers in Germany to continue
to outperform the sector average in terms of like-for-like sales,"
added Albrecht Hornbach. Sales at the Hornbach Baustoff Union GmbH
subgroup should also outperform the builders' merchant segment in
Germany. In other European countries, Hornbach expects the widespread
distribution of risks across its European DIY store network to enable
reductions in sales in specific regions to be compensated for at
least in part by sales growth in other regions.
Due mainly to significantly lower earnings in the real estate
segment, operating earnings (EBIT) at the overall Hornbach Holding AG
Group for the 2009/2010 financial year as a whole will fall
significantly short of the previous year's figure, but are
nevertheless expected to
exceed the EBIT posted for the 2007/2008 financial year (¤ 105.5m).
Hornbach campaign wins award at Cannes as well
Hornbach consistently focuses on its "project customer" target group.
This is also true of the company's advertising, which presents key
themes succinctly and unmistakably. The campaign "If you can imagine
it, you can also build it" was awarded a Silver Lion at the
advertising festival held in Cannes at the end of June. This is the
first time that a German company has won one of the coveted awards in
the supreme discipline in the competition, the Integrated Lions. The
campaign had already received numerous awards previously, including
one from the Art Directors Club. "That this motto should be singled
out is at the same time also a great compliment to our project
customers, who form the focal point of our concept," commented Jürgen
Schröcker, Chief Marketing Officer.
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 1st Quarter (March 1 to May 31)
Key Figures at the HORNBACH HOLDING 1st Quarter 1st Quarter Change
AG Group
(in ¤ million unless otherwise 2009/2010 2008/2009 in %
stated)
Net sales 819.8 777.7 5.4
of which in other European countries 312.6 294.6 6.1
Like-for-like sales growth (DIY) 1.5% 1.5%
Gross margin (as % of net sales) 36.2% 36.1%
EBITDA 77.1 84.4 -8.6
EBIT* 59.6 67.2 -11.3
Consolidated earnings before taxes 50.4 58.5 -13.9
Net income for the period** 37.1 45.9 -19.3
Earnings per preference share (in ¤) 3.72 4.87 -23.6
Investments 38.8 35.2 10.2
Misc. Key Figures at the HORNBACH May 31, 2009 Feb. 28, 2009 Change
HOLDING AG Group
(in ¤ million unless otherwise in %
stated)
Total assets 2,103.2 1,995.8 5.4
Shareholders' equity 820.5 780.5 5.1
Shareholders' equity as % of total
assets 39.0% 39.1%
Number of employees 13,262 13,169 0.7
* includes non-operating earnings components from the real estate
segment. Net non-operating accounting gains of ¤ 10.7 million were
reported in the first quarter of the previous year, while in line
with the budget no disposal gains were generated on real estate
transactions in the first quarter of 2009/2010. Following adjustment
for non-operating earnings items, operating EBIT improved by 5.8
percent.
** including minority interests pursuant to IFRS.
Key Figures at the 1st Quarter of 1st Quarter of Change
HORNBACH-Baumarkt-AG Subgroup
(in ¤ million unless otherwise 2009/2010 2008/2009 in %
stated)
Net sales 774.8 739.2 4.8
of which in other European
countries 312.6 294.5 6.1
Like-for-like sales growth 1.5% 1.5%
Gross margin (as % of net sales) 36.8% 36.7%
EBITDA 63.2 62.4 1.3
EBIT 49.6 48.6 2.0
Consolidated earnings before
taxes 44.4 43.6 1.8
Net income for the period 33.1 31.8 4.0
Basic earnings per share (in ¤) 2.10 2.03 3.4
Investments 27.4 12.8 113.6
Misc. Key Figures at the May 31, 2009 Feb. 28, 2009 Change
HORNBACH-Baumarkt-AG Subgroup
(in ¤ million unless otherwise in %
stated)
Total assets 1,518.7 1,425.2 6.6
Shareholders' equity 625.8 591.3 5.8
Shareholders' equity as % of total
assets 41.2% 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 12,679 12,576 0.8
Rounding up or down may lead to discrepancies between percentages and
totals. Calculation of percentage figures based on ¤ 000s.
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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;
