DGAP-News: Hornbach Holding AG & Co. KGaA / Key word(s): 9-month figures/Quarterly / Interim Statement Hornbach Group increases sales by 4.5% in first nine months - Earnings held back by weak quarterly performance in Germany Hornbach Group increases sales by 4.5% to Euro 3.0 billion in first nine months of 2015/2016 / DIY stores in other European countries as key growth driver / Weak earnings in Germany in fall hold back Group's earnings performance / Nine-month operating earnings (EBIT) down 9.8% to Euro 172.5 million / Earnings per share nevertheless almost at previous year's level
"We did not reach our earnings targets in the third quarter. In Germany, both sales and the gross margin fell short of our expectations. In the fall months, we felt the effects of a certain reluctance on the part of German consumers to make purchases, a development which competitors reacted to with increased discount campaigns. That adversely affected our margin in November in particular", explained Albrecht Hornbach, Chairman of the Board of Management of Hornbach Management AG. The year-on-year development in the gross margin was negatively influenced by, among other factors, changes in the product mix due to the growing share of online sales and one-off items resulting from the takeover of former Praktiker/Max Bahr locations. Furthermore, earnings were held back throughout the entire period under report by cost increases mainly relating to the expansion in the Hornbach Group's internet activities. "Digitizing retail is the greatest challenge in the DIY sector as well. Anyone unwilling or unable to invest considerable sums in technology and infrastructure in this area will be left behind in future", stressed Albrecht Hornbach. The Hornbach Group was pursuing a sustainable growth strategy. "Now is the time to invest, even if the odd quarter does not go so well. We are convinced that this approach will pay off in the long term, but that will take staying power", added Albrecht Hornbach. DIY store sales up 5.9% in third quarter Sales at Hornbach Baumarkt AG, the largest operating subgroup (DIY retail), grew by 5.9% to Euro 863.0 million in the period from September 1 to November 30, 2015. In the first nine months of 2015/2016, the 153 Hornbach DIY stores with garden centers in nine European countries increased their net sales by 4.7% to Euro 2.8 billion. On a like-for-like basis and net of currency items, DIY sales grew by 2.9% in the third quarter and by 1.8% in the first nine months of the 2015/2016 financial year. This growth was driven above all by strong demand from DIY customers at Hornbach's stores outside Germany. Adjusted sales here increased by 7.0% in the third quarter and by 3.7% in the first nine months. This more than offset the development in sales in the domestic business, which remained virtually unchanged on the previous year. The Hornbach Baustoff Union GmbH subgroup increased its net sales by 2.8% to Euro 62.2 million in the third quarter and by 1.2% to Euro 182.4 million in the first nine months. Hornbach launched operations at four new DIY megastores in other European countries in the third quarter of 2015/2016 and thus completed its expansion program for the current financial year. As of November 30, 2015, Hornbach operated 153 DIY stores with garden centers in nine European countries, of which 99 stores in Germany. Earnings expectations reduced for 2015/2016 Due to the weak third-quarter earnings performance of our DIY store business, especially in Germany, the full-year earnings targets for the business performance of the Hornbach Group in the 2015/2016 financial year have been updated. Accordingly, the Board of Management no longer expects consolidated operating earnings (EBIT) for the 2015/2016 financial year as whole to roughly match the level reported for the 2014/2015 financial year. "We rather see EBIT as being likely to fall a maximum of 15% short of the previous year's figure of Euro 165.1 million" is the forecast issued in the interim report published today by the Hornbach Holding AG & Co. KGaA Group. Note: Key Figures of the Hornbach Group for the 3rd Quarter and First Nine Months at a Glance
Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on Euro 000s. 1) Previous year's figures adjusted due to IFRIC 21; please see Note 1 in the Nine-Month Interim Report 2015/2016
2015-12-21 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English | |
Company: | Hornbach Holding AG & Co. KGaA | |
Le Quartier Hornbach 19 | ||
67433 Neustadt an der Weinstraße | ||
Germany | ||
ISIN: | DE0006083405 | |
WKN: | 608340 | |
Indices: | SDAX | |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart | |
End of News | DGAP News Service |