DGAP-News: Hornbach Holding AG / Key word(s): Development of Sales
Hornbach Holding AG: Hornbach Group boosts sales by 4.3 percent to
around Euro 3.4 billion
20.03.2014 / 07:00
---------------------------------------------------------------------
Trading Statement for 2013/2014:
Hornbach Group boosts sales by
4.3 percent to around Euro 3.4 billion
DIY megastores with garden centers achieve turnaround, posting
like-for-like growth of 2.7 percent - Other European countries make up
shortfall - Builders' merchant business increases sales by 4.1 percent
Neustadt/Weinstrasse, March 20, 2014.
Following a strong final push in the fourth quarter, the Hornbach Group
(Hornbach Holding AG Group) increased its sales for the 2013/2014 financial
year by 4.3 percent to Euro 3,369 million. Hornbach-Baumarkt-AG, the
largest operating subgroup with 141 DIY megastores and garden centers in
nine countries across Europe, improved its sales by 4.4 percent to Euro
3,152 million. After a poor start to the year due to weather conditions in
the first quarter, Hornbach managed to significantly boost its growth rate
compared with the previous financial year. Group-wide like-for-like sales
net of currency items at DIY megastores with garden centers showed a
turnaround, rising by 2.7 percent and thus contrasting with the 1.4 percent
downturn reported for the previous year's period.
The increasing growth momentum seen in the course of the 2013/2014
financial year (March 1, 2013 to February 28, 2014) was driven in
particular by the 92 Hornbach DIY megastores with garden centers in
Germany. These boosted twelve-month domestic sales at the
Hornbach-Baumarkt-AG subgroup by 5.0 percent to Euro 1,827 million. On a
like-for-like basis, i.e. excluding stores newly opened or closed in the
past twelve months, sales in Germany grew by 4.9 percent. The company thus
expanded its domestic market share from 9.3 percent to 10.0 percent in
2013.
Germany: Significant growth in defiance of sector trend
"Following the spring freeze, that represents a very strong performance in
Germany", commented Albrecht Hornbach, Chairman of the Board of Management
of the Hornbach Holding AG parent company. "We generated substantial growth
in the past year, and that despite the negative sector trend, and thus
extended our head start over the sector in terms of like-for-like sales
from one-and-a-half to around five percentage points." Hornbach attributes
this above all to the company's consistent focus on project customers. Not
only that, the company had successfully secured a share of the sales
distributed among competitors from summer 2013 onwards in the wake of the
Praktiker and Max Bahr insolvency.
Furthermore, the DIY business benefited from mild weather conditions. New
construction and renovation projects witnessed virtually no winter break in
the final quarter (December 2013 to February 2014). This factor also
favored developments at the Hornbach Baustoff Union GmbH, whose 27 regional
builders' merchants outlets improved their sales by 4.1 percent to Euro 216
million in 2013/2014.
Other European countries: Successful race to make up lost ground
Sales in other European countries also noticeably gained in momentum
compared with the previous year. Including stores newly opened, DIY sales
in the eight countries outside Germany grew by 3.5 percent to Euro 1,325
million. Given the stronger growth reported in Germany, the subgroup's
international share of sales slipped from 42.4 percent to 42.0 percent.
Over the financial year, Hornbach's international DIY megastores with
garden centers made up for almost all of the weather-related shortfall seen
in like-for-like sales net of currency items in the first quarter
(twelve-month period: minus 0.1 percent).
According to company information, the end of the recession in Europe led to
a gradual improvement in consumer confidence from spring 2013 onwards.
"Consumers are once again willing to invest more cash in construction and
DIY projects", remarked Albrecht Hornbach. Against this backdrop, the
performance of the Hornbach stores in other European countries consistently
improved from the second quarter of the financial year. "Compared with the
previous year, we have seen an increase in the number of countries across
our network reporting adjusted sales growth," added Hornbach.
Details of the earnings performance and the annual financial statements
will be presented at the Annual Results Press Conference on May 27, 2014.
<pre>
Preliminary key figures of 2013/2014 2012/2013 Change Change
Hornbach Holding AG Group
(in Euro million unless otherwise financial financial like-for-
stated) year year in % like (%)*
Net sales at overall Group 3,369 3,229 4.3
Net sales at Hornbach-Baumarkt-
AG subgroup 3,152 3,020 4.4 2.7
of which in Germany 1,827 1,741 5.0 4.9
of which in other European
countries 1,325 1,279 3.5 -0.1
Net sales at Hornbach Baustoff
Union GmbH subgroup 216 207 4.1
Number of DIY stores 141 138 2.2
Sales areas as per BHB (000 m²) 1,647 1,598 3.1
Average DIY store size (m²) 11,700 11,600 0.9
Total workforce of HORNBACH Group 15,712 14,913 5.4
</pre>
*adjusted for currency items
Rounding up or down may lead to discrepancies between percentages and
totals. Percentage figures calculated on basis of Euro 000s.
End of Corporate News
---------------------------------------------------------------------
20.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: Hornbach Holding AG
Le Quartier Hornbach 19
67433 Neustadt an der WeinstraÃe
Germany
ISIN: DE0006083439
WKN: 608343
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
258388 20.03.2014
DGAP-News: Hornbach Holding AG: Hornbach Group boosts sales by 4.3 percent to around Euro 3.4 billion
| Source: EQS Group AG