DGAP-News: Hornbach Holding AG: Earnings now ahead of previous year after sprint to catch up

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| Source: EQS Group AG
DGAP-News: Hornbach Holding AG / Key word(s): Interim Report/9-month
figures
Hornbach Holding AG: Earnings now ahead of previous year after sprint
to catch up

20.12.2013 / 07:00

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Earnings now ahead of previous year after sprint to catch up 

Hornbach publishes nine-month report 2013/2014: 

- Hornbach Group increases sales by 2.9 percent to Euro 2.7 billion 

- DIY stores and garden centers with further pleasing like-for-like sales
growth

- Nine-month operating earnings (EBIT) up 0.3 percent to Euro 173.5 million


Neustadt a. d. Weinstrassee, December 20, 2013. 
The Hornbach Group (Hornbach Holding AG Group) sprinted to make up lost
ground in the third quarter of 2013/2014 (September 1, 2013 to November 30,
2013). By the end of the first nine months, the Group had completely made
up for the weather-related shortfall in earnings from the first quarter.
The Group increased its third-quarter sales by 5.1 percent to Euro 851
million, while its sales for the first nine months of 2013/2014 increased
by 2.9 percent to Euro 2.7 billion. Operating earnings (EBIT), which at the
end of the first half had still lagged around Euro 15 million behind,
returned to year-on-year growth. EBIT totaled Euro 35.3 million in the
third quarter (plus 78.3 percent) and Euro 173.5 million in the first nine
months (plus 0.3 percent).

Hornbach-Baumarkt-AG, the largest operating subgroup (DIY retail) boosted
its sales by 5.6 percent to Euro 788 million in the third quarter of
2013/2014. In the first nine months, Hornbach's DIY megastores with garden
centers increased their sales by 3.0 percent to Euro 2.5 billion. On a
like-for-like basis and net of currency items, third-quarter sales were 4.6
percent ahead of the previous year's figure. This like-for-like sales
growth was driven by the DIY stores and garden centers both in Germany and
in other European countries. Thanks to this pleasing performance,
nine-month adjusted sales returned to their growth course (plus 0.8
percent), compared with a downturn of 0.8 percent in the first half of the
year.

Germany once again provided the greatest growth momentum. Third-quarter
sales at the DIY stores and garden centers here grew by 7.7 percent to Euro
457 million (2012/2013: Euro 424 million). Like-for-like sales for the same
period rose by 7.0 percent. Cumulative sales for the first nine months
increased by 3.4 percent to Euro 1,443 million, and by 2.6 percent on a
like-for-like basis. Hornbach's stores in Germany thus continued to
significantly outperform the sector average and expanded their market
share.

DIY sales outside Germany (other European countries) grew 2.8 percent to
Euro 331 million in the third quarter of 2013/2014 and by 2.4 percent to
Euro 1,058 million in the first nine months. Like-for-like sales net of
currency items also showed pleasing momentum in other European countries,
rising by 1.5 percent in the third quarter, compared with growth of 0.5
percent in the previous quarter. As a result, adjusted sales growth
improved from minus 2.9 percent in the first half to minus 1.5 percent in
the first nine months. Following one new store opening in the Netherlands
in the third quarter of 2013/2014, Hornbach was operating 141 DIY
megastores with garden centers in nine countries across Europe as of
November 30, 2013, of which 92 stores in Germany. One new large-format
replacement location is scheduled to open in Heidelberg in February 2014.
 At Euro 62.5 million, third-quarter sales at the Hornbach Baustoff Union
GmbH subgroup matched the previous year's figure and increased by 1.3
percent to Euro 179.8 million in the first nine months of 2013/2014
(2012/2013: Euro 177.5 million).

Thanks in particular to pleasing like-for-like sales growth at the DIY
stores and garden centers in conjunction with a higher gross margin, the
Hornbach Group significantly improved its earnings performance in the third
quarter of 2013/2014. Consolidated operating earnings (EBIT) for the third
quarter rose from Euro 19.8 million in the previous year to Euro 35.3
million. At Euro 173.5 million, nine-month EBIT were thus slightly ahead of
the previous year's figure (plus 0.3 percent). In the first nine months,
the Hornbach Group therefore made up for all of the year-on-year shortfall,
which at the end of the first six months had still amounted to Euro 14.9
million (minus 9.7 percent).

The full-year sales and earnings forecast for 2013/2014 remains unchanged.
Accordingly, the Hornbach Holding AG Group expects to achieve slight
year-on-year sales growth and expects its EBIT for 2013/2014 to at least
match the level in 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:
www.hornbach-group.com/reports.


Key Figures for the 3rd Quarter and First Nine Months at a Glance 

<pre>
Key figures of the Hornbach Holding AG Group       3rd        3rd         ±
                                               Quarter    Quarter
(in Euro million, unless otherwise stated)   2013/2014  2012/2013      in %

Net sales                                        851.1      809.5       5.1
of which: Hornbach-Baumarkt-AG subgroup          788.1      746.4       5.6
- Germany                                        456.8      424.1       7.7
- Other European countries                       331.3      322.3       2.8
Like-for-like sales growth (DIY)1)                4.6%      -2.0%
of which: Hornbach Baustoff Union GmbH
subgroup                                          62.5       62.7      -0.3
Gross margin (as % of net sales)                 36.0%      35.3%
EBIT                                              35.3       19.8      78.3
Earnings per preference share (Euro)              1.03       0.43     139.5

</pre>

<pre>

Key figures of the Hornbach Holding AG Group       9 Months  9 Months    ±
(in Euro million, unless otherwise stated)        2013/2014 2012/2013 in %

Net sales                                           2,681.7   2,607.0  2,9
of which: Hornbach-Baumarkt-AG subgroup             2,500.6   2,428.3  3,0
- Germany                                           1,442.6   1,395.4  3,4
- Other European countries                          1,058.0   1,032.9  2,4
Like-for-like sales growth (DIY)1)                     0.8%     -0.8%
of which: Hornbach Baustoff Union GmbH subgroup       179.8     177.5  1.3
Gross margin (as % of net sales)                      36.4%     36.5%
EBIT                                                  173.5     173.0  0.3
Earnings per preference share (Euro)                   5.41      5.24  3.2

</pre>

<pre>

Misc. key figures of the Hornbach           November     February         ±
Holding AG Group                            30, 2013     28, 2013
                                                                       in %

Shareholders' equity as % of total
assets                                         48.8%        48.3%
Number of DIY stores with garden centers         141          138       2.2
Sales area of DIY stores with garden
centers in 000 m² (BHB)                        1,642        1,598       2.8
Number of employees                           15,416       14,913       3.4

</pre>

Rounding up or down may lead to discrepancies between percentages and
totals. Calculation of percentage figures based on Euro 000s.

1)  currency-adjusted


End of Corporate News

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20.12.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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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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245644 20.12.2013