DGAP-News: Hornbach Holding AG: Expectedly difficult start to spring season
(firmenpresse) - DGAP-News: Hornbach Holding AG / Key word(s): Quarter
Results/Development of Sales
Hornbach Holding AG: Expectedly difficult start to spring season
27.06.2013 / 07:00
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Expectedly difficult start to spring season
Hornbach publishes results for first quarter of 2013/2014
Consolidated sales fall 2.9% to Euro 892 million due to prolonged winter /
Earnings significantly below previous year's figures / New store opening in
Slovakia / Full-year sales and earnings forecast confirmed for 2013/2014
Neustadt a. d. Weinstrasse, June 27, 2013.
The Hornbach Group (Hornbach Holding AG Group) has - like the entire DIY
and garden store segment - suffered a difficult start to its new financial
year due to erratic weather conditions in the spring. Consistent with
expectations, the exceptionally long winter adversely affected the Group's
sales and earnings performance in the first three months of the current
2013/2014 financial year (March 1 to May 31, 2013). Consolidated sales fell
2.9% to Euro 892.0 million in the first quarter (2012/2013: Euro 918.8
million). Earnings showed an even more substantial decline. The Hornbach
Group's operating earnings (EBIT) reduced by 32.2% to Euro 51.1 million
(2012/2013: Euro 75.4 million). Despite this weak start, Hornbach is
confident that its race to catch up in the coming months will still enable
it to meet its full-year forecast for 2013/2014.
Hornbach-Baumarkt-AG, the largest operating subgroup, opened a new store in
Slovakia in April and now operates 139 DIY megastores with garden centers
in nine European countries. Its sales for the first quarter of 2013/2014
dropped by 3.0% to Euro 838.9 million (2012/2013: Euro 865.1 million). On a
like-for-like basis, i.e. excluding stores newly opened or closed in the
past twelve months, sales fell by 5.9% (including currency items: by 6.1%).
'Neither we nor the overall DIY sector have ever seen such a start to the
year. Snow and frost literally froze demand at our DIY stores and garden
centers in March and the first half of April 2013', commented Albrecht
Hornbach, Chairman of the Board of Management of Hornbach Holding AG when
presenting the quarterly results.
The Hornbach DIY megastores with garden centers in Germany also felt the
effects of the poor weather conditions. Thanks to their unmistakable
concept focused on project customers, however, they once again managed to
outperform the sector average. In the first three months of the 2013/2014
financial year (March 1 to May 31, 2013), sales at Hornbach's stores in its
home market fell 4.9% to Euro 478.9 million (2012/2013: Euro 503.8
million). On a like-for-like basis, domestic sales declined by 5.8%. Based
on its own figures, Hornbach outperformed the German DIY sector by around
one percentage point in the period under report.
In the eight countries in which it operates outside Germany, Hornbach
virtually maintained the previous year's level of sales thanks to recent
new store openings. Sales in other European countries slipped by 0.4% to
Euro 360.0 million (2012/2013: Euro 361.4 million). The international share
of sales at the Hornbach-Baumarkt-AG subgroup increased from 41.8% to
42.9%. On a like-for-like basis, sales outside Germany fell by 6.1% net of
currency items and by 6.5% including currency items in the first quarter of
2013/2014. Apart from Romania, all international regions reported declines
in comparable store sales.
At the Hornbach Baustoff Union GmbH (HBU) subgroup, which focuses on
professional customers in the main construction and subconstruction trades,
as well as on private customers, sales reduced by 1.1% to Euro 52.7 million
(2012/2013: Euro 53.2 million). Frosty conditions, especially in March
2013, led to numerous construction projects being postponed. Operations
were launched in the first quarter of 2013/2014 at one new location close
to Pirmasens (Dahn). HBU currently operates 25 builders' merchant outlets
in south-western Germany and two outlets close to the border in France
(Lorraine).
The reduction in like-for-like sales was the main reason why the Hornbach
Group's earnings for the first quarter of 2013/2014 fell significantly
short of the previous year's figures. Operating earnings (EBIT) at the
Hornbach Holding AG Group decreased by 32.2% to Euro 51.1 million
(2012/2013: Euro 75.4 million). Earnings per preference share are reported
at Euro 1.62 (2012/2013: Euro 2.34). 'Despite these setbacks in the first
quarter, we are upholding our sales and earnings forecast for 2013/2014 as
a whole. We are confident that we will be able to make up for lost ground
in the coming months. After all, the need for construction and renovation
work remains high', commented Albrecht Hornbach. The Hornbach Group
therefore continues to expect that its sales for the 2013/2014 financial
year will slightly exceed the previous year's figure (Euro 3.23 billion)
and that its EBIT will more or less match or fall slightly short of the
figure reported for the 2012/2013 financial year (Euro 145.9 million).
Note: The extensive interim reports of Hornbach Holding AG and
Hornbach-Baumarkt-AG can be downloaded from the internet at:
http://www.hornbach-group.com/reports.
Key figures of the Hornbach Group for the 1st quarter at a glance
Key figures of the Hornbach Holding AG Group 1st 1st Change
Quarter Quarter
(in Euro million, unless otherwise stated) 2013/2014 2012/2013 in %
Net sales 892.0 918.8 -2.9
of which Hornbach-Baumarkt-AG subgroup 838.9 865.1 -3.0
of which Hornbach Baustoff Union GmbH
subgroup 52.7 53.2 -1.1
of which in other European countries 362.4 361.4 0.3
Like-for-like sales growth (DIY) 1) -5.9% -1.1%
Gross margin (as % of net sales) 36.7% 37.5%
EBIT 51.1 75.4 -32.2
Earnings per preference share (in Euro) 1.62 2.34 -30.8
Investments 31.1 32.7 -4.8
Misc. key figures of the HORNBACH HOLDING May 31, February 28, Change1) net of currency items
AG Group 2013 2013
in %
Shareholders' equity as % of total assets 46.8% 48.3%
Number of DIY stores with garden centers 139 138 0.7
Sales area of DIY stores with garden
centers in 000 m²(BHB) 1,613 1,598 0.9
Number of employees 15,165 14,913 1.7
Rounding up or down may lead to discrepancies between percentages and
totals. Calculation of percentage figures based on Euro 000s.
End of Corporate News
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Language: English
Company: Hornbach Holding AG
Le Quartier Hornbach 19
67433 Neustadt an der Weinstraße
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
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218283 27.06.2013
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Datum: 27.06.2013 - 07:00 Uhr
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