DGAP-News: Hornbach Holding AG: Hornbach boosts earnings strength


DGAP-News: Hornbach Holding AG / Key word(s): 9-month figures/Quarter
Results
Hornbach Holding AG: Hornbach boosts earnings strength

22.12.2014 / 07:00

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Nine-month report 2014/2015 published:

Hornbach boosts earnings strength 


- Hornbach Group increases nine-month sales by 6.3 percent to Euro 2.85
billion

- Pleasing growth in like-for-like sales at DIY stores with garden centers 

- Operating earnings (EBIT) with cumulative growth of 9.0 percent to Euro
189.2 million

Neustadt a. d. Weinstrasse, December 22, 2014. 
The Hornbach Group's sales and earnings gained notable momentum in the
third quarter of 2014/2015 (September 1 to November 30, 2014) compared with
the previous quarter. This contributed to the pleasing nine-month business
performance. Cumulatively, the Hornbach Holding AG Group can report
disproportionate earnings growth compared with sales.

Despite tougher conditions than one year ago, the Group increased its
third-quarter sales by 2.9 percent to Euro 876 million. Consolidated sales
for the first nine months of 2014/2015 grew by 6.3 percent to Euro 2.85
billion. Consolidated operating earnings (EBIT) rose 3.6 percent to Euro
36.5 million in the third quarter and 9.0 percent to Euro 189.2 million in
the first nine months.

Sales at Hornbach-Baumarkt-AG, the largest operating subgroup (DIY retail)
grew by 3.4 percent to Euro 815 million in the third quarter of 2014/2015
and by 6.8 percent to Euro 2.67 billion in the nine-month period. Net of
currency items, like-for-like DIY sales added 1.0 percent to the previous
year's high basis for comparison (plus 4.6 percent). This like-for-like
sales growth was driven by the stores both in Germany and in other European
countries. On a cumulative basis for the first nine months, the subgroup's
like-for-like sales net of currency items grew by 4.9 percent.

The key growth driver was once again the DIY stores with garden centers in
Germany, which boosted their sales in the period from September to November
2014 by 4.5 percent to Euro 477 million. Like-for-like sales grew by 1.4
percent over the same period. Nine-month domestic sales increased by 8.2
percent to Euro 1,561 million and by 6.5 percent on a like-for-like basis.
Hornbach's stores in Germany thus yet again outperformed the sector average
and expanded their market share.

DIY sales in other European countries rose by 1.9 percent to Euro 337
million in the third quarter of 2014/2015 and by 4.8 percent to Euro 1,109
million in the nine-month period. Net of currency items, like-for-like
sales in the international business grew by 0.6 percent in the third
quarter and by 2.6 percent cumulatively in the first nine months.

In the third quarter of 2014/2015, Hornbach launched operations in Germany
at three former Praktiker / Max Bahr locations in Ulm, Lüneburg, and Kamen.
As of November 30, 2014, Hornbach was thus operating 147 DIY megastores
with garden centers in nine European countries, of which 98 stores in
Germany.
 At Euro 180 million, sales at the Hornbach Baustoff Union GmbH subgroup
upheld their slight lead over the previous year in the first nine months of
2014/2015, and that despite slightly weaker demand in the third quarter.
Cumulative EBIT at this subgroup rose 1.6 percent to Euro 8.7 million.

At the Hornbach Immobilien AG subgroup, higher rental income and the profit
from the sale of a property no longer required for operations more than
offset higher real estate expenses. Operating earnings grew by 7.7 percent
to Euro 41.6 million in the first nine months of 2014/2015.

The Hornbach Group's earnings showed disproportionate growth compared with
sales in the first nine months of 2014/2015. Thanks above all to pleasing
like-for-like sales growth at the DIY megastores with garden centers in
conjunction with an improved gross margin, the Group significantly offset
the higher costs incurred, particularly for its expansion, in the second
and third quarters. Earnings also benefited from increased earnings
strength at the Hornbach Immobilien AG and Hornbach Baustoff Union GmbH
subgroups. Consolidated operating earnings (EBIT) for the first nine months
grew by 9.0 percent to Euro 189.2 million. Net income for the same period
grew by 13.1 percent to Euro 119.0 million. Cumulative earnings per
preference share amount to Euro 6.09 (2013/2014: Euro 5.41).


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: Hornbach Holding AG Group     3rd Quarter 3rd Quarter        ±
(in Euro million, unless otherwise stated)  2014/2015   2013/2014      in %

Net sales                                       875.8       851.1       2.9
of which Hornbach-Baumarkt-AG subgroup          814.9       788.1       3.4
- Germany                                       477.4       456.8       4.5
- Other European countries                      337.5       331.3       1.9
Like-for-like sales growth (DIY)1)               1.0%        4.6%
of which Hornbach Baustoff Union GmbH
subgroup                                         60.5        62.5      -3.2
Gross margin (as % of net sales)                36.7%       36.0%
EBIT                                             36.5        35.3       3.6
Earnings per preference share (in Euro)          1.22        1.03      18.4


</pre>

<pre>


Key figures: Hornbach Holding AG Group            9 Months  9 Months    ±
(in Euro million, unless otherwise stated)       2014/2015 2013/2014 in %

Net sales                                          2,851.4   2,681.7  6.3
of which Hornbach-Baumarkt-AG subgroup             2,669.8   2,500.6  6.8
- Germany                                          1,560.9   1,442.6  8.2
- Other European countries                         1,108.9   1,058.0  4.8
Like-for-like sales growth (DIY)1)                    4.9%      0.8%
of which Hornbach Baustoff Union GmbH subgroup       180.2     179.8  0.2
Gross margin (as % of net sales)                     37.2%     36.4%
EBIT                                                 189.2     173.5  9.0
Earnings per preference share (in Euro)               6.09      5.41 12.6


</pre>

<pre>


Misc. key figures of the Hornbach      November 30,  February 28,         ±
Holding AG Group                               2014          2014
                                                                       in %

Shareholders' equity as % of total
assets                                        51.2%         49.3%
Number of DIY stores with garden
centers                                         147           141
Sales area of DIY stores with garden
centers in 000 m²                             1,705         1,647       3.5
Number of employees2)                        16,490        16,021       2.9


</pre>

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

1)  Net of currency items

2)  Headcount at reporting date including persons in marginal employment



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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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307645 22.12.2014