Published on 30 March 2015

Hornbach DIY Division grows by 6.5%

Trading Statement for 2014/2015: Growth momentum accelerates compared with previous year / DIY megastores with garden centers increase like-for-like sales by 5.5 percent in Germany and 2.8 percent in international business

The Hornbach Group (Hornbach Holding AG Group) stepped up its pace of growth in the past 2014/2015 financial year compared with the previous year. Consolidated sales for the period from March 1, 2014 to February 28, 2015 showed group-wide growth of 6.0 percent (2013/2014: 4.3 percent) to Euro 3,572 million. Hornbach-Baumarkt-AG, the largest operating subgroup with 146 DIY megastores and garden centers in nine countries across Europe at the balance sheet date on February 28, 2015, increased its sales by 6.5 percent to Euro 3,357 million. On a like-for like basis and net of currency items, group-wide DIY and garden store sales grew by 4.4 percent. This growth was driven by the stores both in Germany and in other European countries. The international share of sales within the Baumarkt subgroup most recently amounted to 41.4 percent. 

Germany steps up another gear 

The strongest growth momentum came once again from Germany. Full-year sales at the Hornbach-Baumarkt-AG subgroup’s 97 DIY megastores with garden centers in its home market rose by 7.6 percent to Euro 1,966 million. This figure includes sales at seven locations newly opened and one newly extended in Germany. Like-for-like sales in Germany, i.e. excluding stores newly opened or closed in the past twelve months, grew by 5.5 percent. Hornbach expanded its share of its domestic market from 10.0 percent to 11.0 percent in 2014. 

“Our like-for-like sales growth in Germany is remarkable. The previous year benefited very significantly from market consolidation factors in the wake of the Praktiker insolvency and the mild winter in 2013/2014. This set a very high standard to beat, especially in the second half of the year. As the figures show, we have clearly stepped up another gear”, commented Albrecht Hornbach, Chairman of the Board of Management of Hornbach Holding AG. “Together with our high-performing online retail, our stationary DIY stores and garden centers offer real added value to customers, particularly those planning to tackle larger-scale construction and renovation projects.” 

Other European countries return to like-for-like growth 

The Hornbach Group can also report pleasing growth for the 2014/2015 financial year in its eight country markets outside Germany. Including one new store opening, DIY sales in other European countries rose 5.0 percent (2013/2014: 3.5 percent) to Euro 1,390 million. 

Like-for-like sales performance at Hornbach DIY megastores with garden centers * (in percent) 

2014/2015 financial year
2013/2014 financial year
1st quarter 2nd quarter 3rd quarter 4th quarter Total
Group 14.6 -1.0 1.0 2.4 4.4
  -5.9 4.6 4.6 10.6 2.7
Germany 19.4 -1.0 1.4 1.8 5.5
  -5.8 7.7 7.0 14.1 4.9
Other European countries 8.2 -1.0 0.6 3.4 2.8
  -6.1 0.5 1.5 5.9 -0.1

* excluding currency items 

The international business achieved a turnaround in its like-for-like sales net of currency items. After three consecutive years of decline, Hornbach’s international stores posted substantial adjusted sales growth of 2.8 percent in 2014/2015 (2013/2014: -0.1 percent). 

According to the company, these figures also reflect the overall improvement in the macroeconomic framework for consumers and construction clients outside Germany compared with the previous year. Hornbach can report significantly improved sales momentum in all of its country markets. “What is pleasing for us is that we have yet again grown faster than the DIY sector average, and that not only in Germany, but also across most of our international network”, added Albrecht Hornbach. 

In 2014/2015, Hornbach Baustoff Union GmbH had to match the high standard set in the strong previous year. At Euro 213 million, sales at this subgroup, which operated an unchanged total of 27 builders’ merchant outlets at the balance sheet date on February 28, 2015, fell only slightly short of the previous year’s figure of Euro 216 million. 

Details of the earnings performance and the annual financial statements will be presented at the Annual Results Press Conference on May 28, 2015. 

Preliminary key figures of Hornbach Holding AG Group
(in Euro million unless otherwise stated)
2014/2015 financial year 2013/2014 financial year Change in %
Net sales at overall Group 3,572 3,369 6.0
Net sales at Hornbach-Baumarkt-AG subgroup 3.357 3,152 6.5
   of which in Germany 1,966 1,827 7.6
   of which in other European countries 1,390 1,325 5.0
Net sales at Hornbach Baustoff Union GmbH subgroup 213 216 -1.1
Number of DIY stores 146 141 3.5
Sales areas as per BHB (000 m2) 1,704 1,647 3.5
Total workforce of HORNBACH Group 2) 16,455 16,021 2.8

1) adjusted for currency items
2) head count at balance sheet date on February 28
Rounding up or down may lead to discrepancies between percentages and totals. Percentage figures calculated on basis of Euro 000s.
 

“What is pleasing for us is that we have yet again grown faster than the DIY sector average, and that not only in Germany, but also across most of our international network, stated Albrecht Hornbach.”

Source: http://www.hornbach-holding.de/hugin/en/hugin-show-ir.do?id=171&type=1

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