DGAP-News: Hornbach Holding AG & Co. KGaA: Hornbach with dynamic sales growth


DGAP-News: Hornbach Holding AG & Co. KGaA / Key word(s): Half Year
Results/Quarter Results
Hornbach Holding AG & Co. KGaA: Hornbach with dynamic sales growth

29.09.2016 / 12:00
The issuer is solely responsible for the content of this announcement.

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Hornbach with dynamic sales growth

Half-Year Financial Reports 2016/2017: Consolidated sales growth of 6.4% in
first six months / Hornbach Group's operating earnings of Euro 152.5
million ahead of previous year's figure / Sales at DIY stores with garden
centers top two billion euro mark for first time / Like-for-like sales also
show substantial growth / Excellent results in German Kundenmonitor 2016
consumer survey

Neustadt a. d. Weinstrasse, September 29, 2016.
The Hornbach Holding AG & Co. KGaA Group (Hornbach Group) maintained the
positive sales trend already seen in the first three months of its current
financial year. Consolidated sales for the second quarter (June 1 to August
31, 2016) grew 6.8% to Euro 2,186.7 million. In parallel, the Group's
earnings performance also gained momentum. Consolidated operating earnings
(EBIT) rose by 2.2% to Euro 76.0 million in the second quarter and
cumulatively by 0.9% to Euro 152.5 million. The Group has confirmed its
sales and earnings forecasts for the 2016/2017 financial year as a whole.

The pace was set by the dynamic sales performance at the 154 DIY stores
with garden centers operated across Europe by Hornbach Baumarkt AG, the
largest operating subgroup, as of August 31, 2016. Six-month sales here
topped the two billion euro mark for the first time. Following growth of
7.0% to Euro 1,003.6 billion in the second quarter (2015/2016: Euro 938.2
million), the subgroup's sales for the first half of 2016/2017 rose by 6.7%
to Euro 2,062.5 million (2015/2016: Euro 1,933.4 million). On a like-for-
like basis and net of currency items, the subgroup increased its sales by
4.5% in both the second quarter and the first half of 2016/2017.

Top rankings in Kundenmonitor survey underline strong performance in
Germany

"With like-for-like growth of 2.5%, our DIY stores with garden centers in
Germany significantly outperformed the DIY sector average", commented
Albrecht Hornbach, Chairman of the Board of Management of Hornbach
Management AG, at the half-year conference in Frankfurt. "This strong
performance is underlined by the excellent results we achieved in
Kundenmonitor Deutschland 2016." In Germany's most prestigious retail
consumer survey, published just a few days ago, Hornbach was ranked first
for overall satisfaction in the DIY and home improvement store sector,
achieving an overall grade of 2.20. The company also came first in 19 more
of the 46 other categories. "Consumers not only confirmed our price
leadership, they also certified that we offer the most competent advice,
best product quality, and greatest product selection and variety. This
impressive statement of confidence is both an honor for us and a motivation
for us to press ahead with our strategy", added Albrecht Hornbach.

Substantial boost in sales in international business

The greatest momentum at Hornbach Baumarkt AG in the first half was still
generated by the Other European countries region, in which this subgroup's
retail activities in eight countries outside Germany are pooled. Their
cumulative share of subgroup sales rose from 42.3% to 44.6%. On a like-for-
like basis and net of currency items, sales here grew by 7.7% in the second
quarter and by 7.1% in the first half.

Hornbach has successfully established itself as a project partner to DIY
customers in its international network. These days, that no longer applies
only to the stationary DIY stores with garden centers, but increasingly to
the company's e-commerce activities as well. Professional customers and DIY
enthusiasts in Austria, Switzerland, the Netherlands, the Czech Republic,
and Luxembourg, are now also turning to Hornbach's online store to make
their purchases.

Hornbach Baustoff Union benefits from increased housing construction demand

The Hornbach Baustoff Union GmbH (HBU) subgroup, which focuses on the needs
of professional customers in its main target groups in the main
construction and subconstruction trades, as well as on private construction
clients, also noticeably boosted its sales performance in the second
quarter of 2016/2017. Net sales here grew by 4.1% to Euro 66.5 million
(2015/2016: Euro 63.9 million). Cumulatively for the first six months, HBU
increased its consolidated sales by 2.6% to Euro 123.3 million (2015/2016:
Euro 120.2 million). With growth of 6.9% to Euro 5.8 million, half-year
operating earnings (EBIT) at the subgroup rose disproportionately compared
with sales (2015/2016: Euro 5.4 million). HBU reported substantial sales
growth in its "Construction" and "Civil Engineering" product ranges, with
this being driven in particular by higher demand in the housing
construction industry. Having opened a further outlet in the second
quarter, as of August 31, 2016 the subgroup was operating 25 builders'
merchant outlets in south-western Germany and two locations close to the
border in France (Lorraine).

Operating earnings at Hornbach Group slightly ahead of previous year's
figure

The Hornbach Group improved its operating earnings performance in the
second quarter of 2016/2017 compared with the previous quarter. This was
chiefly driven by the pleasing like-for-like sales performance net of
currency items at the DIY stores operated by the Hornbach Baumarkt AG
subgroup, the sales growth achieved at the Hornbach Baustoff Union GmbH
subgroup, and improved cost ratios at the Group. These factors more than
offset the lower gross margin and disproportionate rise in costs for the
increasing digitization of the DIY retail business. At the end of the first
half of the 2016/2017 financial year, the Hornbach Group's operating
earnings (EBIT) came to Euro 152.5 million and were thus 0.9% ahead of the
previous year's figure (Euro 151.1 million). At the Hornbach Baumarkt AG
subgroup, the cumulative EBIT of Euro 119.5 million fell slightly short of
the previous year's figure of Euro 122.4 million. The full-year sales and
earnings forecasts for the Hornbach Group and the Hornbach Baumarkt AG
subgroup for the 2016/2017 financial year have each been confirmed by the
Board of Management.

Note: The Half-Year Financial Reports of Hornbach Holding AG & Co. KGaA and
Hornbach Baumarkt AG can be downloaded online under "Publications":
www.hornbach-group.com/reports.

Key Figures of the Hornbach Group at a Glance

<pre>

Key Figures Hornbach             2nd Quarter          2nd Quarter       ±
Holding AG & Co. KGaA
Group
(in Euro million,                  2016/2017            2015/2016    in %
unless otherwise
stated)
Net sales                            1,070.5              1,002.5     6.8
of which: in Germany                   615.4                602.5     2.1
of which in other                      455.1                400.0    13.8
European countries
Like-for-like sales                     4.5%                 4.0%
growth 1)
Gross margin as % of                   36.3%                36.8%
net sales
EBITDA                                  99.3                 94.1     5.5
EBIT                                    76.0                 74.4     2.2
Consolidated earnings                   68.8                 66.7     3.2
before taxes
Consolidated net income                 50.9                 52.8   (3.5)
Basic/diluted earnings                  2.59                 2.63   (1.5)
per share (Euro)
Investments                             34.5                 51.8  (33.5)


</pre>

<pre>

Key Figures Hornbach Holding AG & Co. KGaA       1st Half   1st Half      ±
Group
(in Euro million, unless otherwise stated)      2016/2017  2015/2016   in %
Net sales                                         2,186.7    2,054.6    6.4
of which: in Germany                              1,262.4    1,232.8    2.4
of which in other European countries                924.3      821.8   12.5
Like-for-like sales growth 1)                        4.5%       1.3%
Gross margin as % of net sales                      36.5%      37.3%
EBITDA                                              198.8      190.3    4.5
EBIT                                                152.5      151.1    0.9
Consolidated earnings before taxes                  137.2      138.8  (1.2)
Consolidated net income                             101.8      105.1  (3.1)
Basic/diluted earnings per share (Euro)              5.16       5.22  (1.1)
Investments                                          84.4       82.6    2.2


</pre>

<pre>

Misc. key figures of    August 31, 2016  February 29, 2016             ±
the Hornbach Holding                                                in %
AG & Co. KGaA Group
Shareholders' equity              51.6%              49.8%
as % of total assets
Number of stores                    154                153           0.7
Sales area in 000 m²              1,791              1,771           1.1
(based on BHB)
Number of employees              17,691             17,373           1.8


</pre>

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

1) Excluding currency items


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29.09.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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, Tradegate Exchange                       
 
 
   End of News    DGAP News Service  
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506811 29.09.2016