HORNBACH Holding AG & Co. KGaA: Trading Statement 2022/23: HORNBACH Group increases sales by 6.6% to EUR 6.3 billion in FY 2022/23

• Continued stable and strong demand for construction and DIY products amid inflationary environment: Consolidated sales up 6.1% in Q4 2022/23 and 6.6% in FY 2022/23
• FY 2022/23 like-for-like sales +3.6% ahead of previous year and significantly above 2019/20 (3-year like-for-like +28.4%)
• Against a challenging environment HORNBACH significantly increased market share in Germany and across all international markets compared to pre-pandemic levels
• Preliminary and unaudited adjusted consolidated operating earnings (EBIT) expected to decrease – in line with guided results – by approx. 20% to around EUR 290 million (+28% vs. 2019/20) 

Table 1: Preliminary unaudited key figures HORNBACH Holding AG & Co. KGaA Group

Rounding up or down may lead to discrepancies between percentages and totals. Percentage figures calculated on basis of Euro 000s.


Bornheim (Palatinate), Germany, March 23, 2023.

The HORNBACH Group (HORNBACH Holding AG & Co. KGaA Group; ISIN: DE0006083405) increased consolidated net sales in the financial year 2022/23 (March 1, 2022 to February 28, 2023) by 6.6% to EUR 6,263 million on the back of continued steady and strong underlying customer demand according to unaudited preliminary figures. In Q4 2022/23 (December 1, 2022 to February 28, 2023) sales grew by 6.1% to EUR 1,253 million. The largest operating subgroup, HORNBACH Baumarkt AG, which operates 171 locations and online stores in 9 European countries as of February 28, 2023 (previous year: 167 locations), increased its sales by 6.3% to EUR 5,843 million. On a like-for-like basis and net of currency effects, sales of HORNBACH Baumarkt AG rose by 3.6%. A 3-year like-for-like figure of +28.4% underscores the significant acceleration in growth during the Covid pandemic. As expected, online sales (including Click & Collect) continued to normalise from the higher levels that were achieved during the Covid pandemic and decreased by -12.8% to EUR 823 million (previous year: EUR 944 million). Sales efficiency once again showed a strong development with plus 2.7% and with sales of EUR 2,925 per square meter, HORNBACH Baumarkt AG is well ahead of competition. The HORNBACH Baustoff Union GmbH subgroup posted strong sales growth of 11.6% to EUR 421 million. HORNBACH Group’s preliminary adjusted EBIT (operating earnings adjusted to exclude non-operating earnings items) for FY 2022/23 came in as guided at approx. EUR 290 million, below the record figure reported for the previous year (EUR 362.6 million), however well above FY 2019/20 level with plus 28%.

 “Amid geopolitical uncertainty, persistently high inflation and consumer sentiment reaching historic lows, the financial year 2022/23 has been very challenging for retail. However, demand for home improvement products remained on a high level with people continuing to prioritize investments in their homes”, said Albrecht Hornbach, CEO of HORNBACH Management AG. “Therefore, we remain confident in the resilience of our business and continue to invest in our people, our technology and in the expansion of our store network.”

Erich Harsch, CEO of the Hornbach Baumarkt AG, added: “We believe that do-it-yourself will play an important role in helping people to make their homes more sustainable, notably when it comes to energy efficient renovations. In challenging times people tend to turn to DIY simply to save money. Based on our broad and deep product range and stringent price leadership we are the retailer of choice for customers.”
 

 Table 2: Like-for-like sales performance¹⁾ HORNBACH Baumarkt AG subgroup (in %)⁴⁾ 

HORNBACH Baumarkt net sales in Germany grew by 2.9%
Net sales at HORNBACH, Baumarkt AG, including online retail, rose by 2.9% to EUR 2,861 million in Germany in the 2022/23 financial year (previous year: EUR 2,780 million). Like-for-like sales, i.e. excluding new store openings and closures in the past twelve months (see table 2), showed growth of 2.4% (previous year: 3.7%). In the 2022 calendar year, the market share of HORNBACH Baumarkt in Germany (GfK⁵⁾) stood at 14.9% compared to 13.1% in the pre-Covid year 2019. As of February 28, 2023, HORNBACH operates 97 (previous year: 96) stores in the stationary DIY retail segment, as well as two Bodenhaus specialist flooring stores (previous year: two). One new DIY store and garden center in Leipzig was added in February 2023.


HORNBACH Baumarkt international sales grew by 9.8% reaching more than 50% of total sales
In the eight countries outside Germany (Other European countries), the HORNBACH Baumarkt AG subgroup, including its online retail activities, achieved net sales growth of 9.8% to EUR 2,982 million (previous year: EUR 2,716 million). As a result the international share of Group sales rose slightly from 49.4% to 51.0%. International like-for-like sales excluding currency effects increased by 4.7% (previous year: 7.3%). Including currency effects, like-for-like sales rose by 6.0% (previous year: 8.0%). Market share (GfK⁵⁾) increased in all countries compared to pre-pandemic levels and by the end of calendar year 2022 stood at 17.8% in Austria (2019: 17.0%), 34.4% in the Czech Republic (2019: 33.3%), 26.1% in the Netherlands (2019: 21.1%) and 13.5% in Switzerland (2019: 12.0%). Three new DIY megastores with garden centers opened during the year 2022/23 in Nitra (Slovakia), Enschede (Netherlands) and Constanta (Romania).


Strong demand also in the builders’ merchant business
The HORNBACH Baustoff Union GmbH subgroup, reported sales growth of 11.6% to EUR 421 million in the 2022/23 financial year (previous year: EUR 377.5 million). As of February 28, 2023, the subgroup operates 39 builders’ merchant outlets including two locations close to the border in France (Alsace/Lorraine) and 37 locations in south-western Germany, thereof two locations in Saarland (Germany) acquired as of July 1, 2022.


Adjusted EBIT of HORNBACH Group at around EUR 290 million
With EUR 290 million the preliminary adjusted EBIT of HORNBACH Group in FY 2022/23 came in 28% above pre-Covid levels (2019/20: EUR 227.0 million). Compared to the record number of FY 2021/22 (EUR 362.6 million), adjusted EBIT declined as guided by 20.0%, mainly due to inflationary pressures and cost pressures weighing on the Group’s margins. Earnings were also impacted by increased store operating and personnel costs.


Details of the earnings performance and annual financial statements for 2022/23, as well as the sales and earnings forecast for the 2023/24 financial year, will be published on May 16, 2023. A financial press conference and an analysts' conference are also planned for that day.

⁵⁾ GfK definition: DIY stores bigger than 1,000 sqm; Data available for Germany, Netherlands, Austria, Switzerland and Czech Republic.

About HORNBACH Group

HORNBACH Group is an independent, family-run retail group under the umbrella of HORNBACH Holding AG & Co. KGaA, which is listed on the Frankfurt Stock Exchange and represented in the SDAX. The largest subsidiary, HORNBACH Baumarkt AG, operates 171 DIY megastores with garden centers (incl. specialist stores) and online shops in nine European countries. The Group also includes HORNBACH Baustoff Union, a regional builders' merchant company with 39 locations in southwestern Germany and France, as well as HORNBACH Immobilien AG, which develops retail real estate for the Group. In the financial year 2022/23 (reporting date: February 28, 2023), the HORNBACH Group generated net sales of EUR 6.3 billion, making it one of the five largest DIY and garden retail companies in Europe. The Group has a workforce of more than 25,000 employees.

HORNBACH Holding on Linkedin