DGAP-News: Hornbach Holding AG & Co. KGaA / Key word(s): Final
Results/Dividend
Hornbach Holding AG & Co. KGaA: Hornbach with dividend hike
24.05.2016 / 12:00
The issuer is solely responsible for the content of this announcement.
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Hornbach with dividend hike
2015/2016 Annual Reports published:
- Hornbach Group sales grow 5.1 % to Euro 3.76 billion
- Extraordinary charges on earnings lead EBIT to fall 17 %
to Euro 138 million
- Company consistently pressing ahead with digitizing business model
- Dividend: Hornbach Holding AG & Co. KGaA raises payout ratio
from 14 % to 30 %
Frankfurt/Main, May 24, 2016. The Hornbach Group has shown itself in robust
shape. In the 2015/2016 financial year (March 1, 2015 to February 29,
2016), the HORNBACH Holding AG & Co. KGaA Group increased its sales by 5.1
% to Euro 3,755 million. Consolidated operating earnings (EBIT) fell year-
on-year by almost 17 % to Euro 138 million (previous year: Euro 165.1
million). This drop in earnings was due to a weak third quarter of
2015/2016 and to non-operating one-off items in the fourth quarter.
Irrespective of this, the Hornbach Group upheld its strategic course and
boosted its investments in digitizing its retail business.
"Despite the difficult business performance in 2015/2016, the core of our
Group's operating growth is intact. Our stationary retail business is
profitable and effective. We raised our surface productivity for the fourth
consecutive year, setting a new record of more than Euro 2,000 per square
meter of sales area at the Group. On this basis, we are continuing to
invest closely in extending our digital strategy and thus lay a foundation
for future growth. We will not be changing this course just because of the
odd poor quarter or unpredictable year-end accounting item", commented
Albrecht Hornbach, Chairman, Board of Management of the general partner of
Hornbach Management AG, when presenting the results in Frankfurt.
Hornbach Baumarkt AG, the most important subgroup that - following its
latest opening in Innsbruck on Monday (May 23, 2016) - currently operates
154 DIY stores with garden centers in nine European countries, increased
its sales by 5.3 % to Euro 3.53 billion in the 2015/2016 financial year
(previous year: Euro 3.36 billion). Like-for-like sales net of currency
items grew by 2.6 %. Operating earnings (EBIT) at the subgroup for the same
period fell by 17.8 % to Euro 90.2 million. The main reasons for this are
to be found in Germany, where the operating earnings performance was
adversely affected by the weak third quarter (September 1 to November 30,
2015) and a lower gross margin. Furthermore, non-operating impairment
losses (pursuant to IAS 36) of around Euro 12.6 million were charged almost
exclusively to the subgroup's earnings in Germany. By contrast, the
international business posted a further cumulative increase in its earnings
strength over the twelve-month period.
The Hornbach Baustoff Union GmbH subgroup maintained its long-term growth
course in the past 2015/2016 financial year and once again exceeded the
previous year's sales. At Euro 218 million, net sales were 2.4 % were ahead
of the year before. Here too, operating earnings were held back by
impairment losses. Non-operating write-downs of minus Euro 3.7 million were
the main reason for the reduction in EBIT to Euro 2.3 million (previous
year: Euro 6.5 million). Net of this one-off item, the subgroup posted
adjusted EBIT of Euro 6.0 million - the second-highest operating earnings
in its history.
The Hornbach Immobilien AG subgroup contributed positively to the Hornbach
Group's earnings performance. Thanks to a slight year-on-year increase in
rental income, lower real estate expenses, and non-operating, one-off
write-ups (IAS 36), EBIT for the 2015/2016 financial year improved 5.8 % to
Euro 54.5 million (previous year: Euro 51.5 million).
Long-term development strategy
The Hornbach Group showed in the past that, thanks to its unique retail
format, it is able to offset downturns in sales in individual regions and
rapidly make up for these with the breadth and dynamism of its country mix.
"What's more, we are convinced we are superbly prepared with our e-commerce
strategy for the transformation currently underway in the retail world.
Since 2010, we have cumulatively invested a triple-digit million euro sum
in expanding our digital business model, of which almost Euro 50 million
(previous year: Euro 35 million) in the past financial year alone", added
Albrecht Hornbach.
Hornbach's long-term strategy also encompasses the conversion in the legal
form of Hornbach Holding Aktiengesellschaft to a partnership limited by
shares (KGaA) successfully executed in the past financial year. This has on
the one hand created a flexible, simplified and forward-looking structure
that has boosted the company's position on the capital market. On the other
hand, with this change in legal form the company's founding family has
secured its influence on the business management of the Hornbach Group for
generations to come.
Consistent with the objectives of the future dividend policy announced by
Hornbach Management AG in May 2015 in connection with the change in legal
form, the general partner and the Supervisory Board of the KGaA will be
proposing a dividend of Euro 1.50 per ordinary KGaA share for approval by
the Annual General Meeting. This corresponds to an increase in the payout
ratio to 30 % of consolidated net income after minority interests (previous
year: 14 %). Prior to the change in legal form, the dividends paid by the
former Hornbach Holding AG most recently came to Euro 0.80 per preference
share and Euro 0.77 per ordinary share. Shareholders in Hornbach Baumarkt
AG can also look forward to a higher distribution. Here, it is planned to
raise the dividend by more than 13% to Euro 0.68 (previous year: Euro 0.60)
per ordinary Baumarkt share.
Key figures of the Hornbach Group (Hornbach Holding AG & Co. KGaA Group)
<pre>
Key figures 2015/2016 2014/2015 ±
financial year financial year
Hornbach Holding AG &
Co. KGaA Group
(in Euro million, unless in %
otherwise stated)
Net sales 3,755.2 3,571.7 5.1
of which Hornbach 3,534.8 3,356.5 5.3
Baumarkt AG subgroup
- Germany 2,010.7 1,966.2 2.3
- Other countries 1,524.3 1,390.3 9.6
Like-for-like sales 2.6% 4.4%
growth (DIY)
of which Hornbach 218.5 213.3 2.4
Baustoff Union GmbH
subgroup
Gross margin (as % of 37.0% 37.3%
net sales)
EBIT 137.5 165.1 -16.7
of which Hornbach 90.2 109.8 -17.8
Baumarkt AG subgroup
of which Hornbach 54.5 51.5 5.8
Immobilien AG subgroup
of which Hornbach 2.3 6.5 -64.4
Baustoff Union GmbH
subgroup
Adjusted EBIT1) 151.2 166.6 -9.2
Consolidated earnings 113.0 139.7 -19.1
before taxes
Consolidated net income 97.7 106.7 -8.5
Earnings per share 5.04 5.63 -10.5
(basic/diluted in Euro)
</pre>
<pre>
Misc. key figures February 29, 2016 Feb. 28, 2015 ±
Hornbach Holding AG &
Co. KGaA Group
in %
Shareholders' equity 49.8% 51.8%
as % of total assets
Number of DIY stores 153 146 4.8
with garden centers
Sales areas in 000 m² 1,771 1,704 3.9
(BHB)
Number of employees 17,373 16,455 5.6
</pre>
Differences due to rounding up or down to nearest Euro million; percentage
changes calculated on basis of Euro 000s.
1) Adjusted to exclude non-operating income and expenses
Note
The Annual Reports of the Hornbach Holding AG & Co. KGaA Group and the
Hornbach Baumarkt AG subgroup for the 2015/2016 financial year are
available online at: www.hornbach-group.com
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Language: English
Company: Hornbach Holding AG & Co. KGaA
Le Quartier Hornbach 19
67433 Neustadt an der Weinstraße
Germany
ISIN: DE0006083405
WKN: 608340
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of News DGAP News Service
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466009 24.05.2016
DGAP-News: Hornbach Holding AG & Co. KGaA: Hornbach with dividend hike
| Source: EQS Group AG