Source: EQS Group AG

DGAP-News: Hornbach Holding AG & Co. KGaA: Hornbach Group increases sales by 4.5% in first nine months - Earnings held back by weak quarterly performance in Germany

DGAP-News: Hornbach Holding AG & Co. KGaA / Key word(s): 9-month
figures/Quarterly / Interim Statement
Hornbach Holding AG & Co. KGaA: Hornbach Group increases sales by 4.5% in
first nine months - Earnings held back by weak quarterly performance in
Germany

21.12.2015 / 07:00
The issuer is solely responsible for the content of this announcement.

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Hornbach Group increases sales by 4.5% in first nine months - Earnings held
back by weak quarterly performance in Germany

Hornbach Group increases sales by 4.5% to Euro 3.0 billion in first nine
months of 2015/2016 / DIY stores in other European countries as key growth
driver / Weak earnings in Germany in fall hold back Group's earnings
performance / Nine-month operating earnings (EBIT) down 9.8% to Euro 172.5
million / Earnings per share nevertheless almost at previous year's level

 
Neustadt a. d. Weinstrasse, December 21, 2015. 
The business performance of the Hornbach Holding AG & Co. KGaA Group
(Hornbach Group) witnessed a setback in the fall: despite group-wide sales
growth, operating earnings for the third quarter of 2015/2016 (September 1
to November 30, 2015) showed a marked downturn. This was primarily due to
an unsatisfactory earnings performance in the DIY store business in
Germany, a factor that also left its mark on the Hornbach Group's earnings
performance for the first nine months of 2015/2016. While cumulative
consolidated sales grew by 4.5% to Euro 3.0 billion, EBIT declined by
almost 10% to Euro 172.5 million. Thanks to improved net financial expenses
and a lower group tax rate, the Hornbach Group's net income of Euro 116.7
million fell only slightly short of the previous year's figure. The Board
of Management has updated the earnings target for the financial year ending
on February 29, 2016. Given the company's innovative and financial
strength, however, it still sees Hornbach's long-term growth potential as
being intact.

"We did not reach our earnings targets in the third quarter. In Germany,
both sales and the gross margin fell short of our expectations. In the fall
months, we felt the effects of a certain reluctance on the part of German
consumers to make purchases, a development which competitors reacted to
with increased discount campaigns. That adversely affected our margin in
November in particular", explained Albrecht Hornbach, Chairman of the Board
of Management of Hornbach Management AG. The year-on-year development in
the gross margin was negatively influenced by, among other factors, changes
in the product mix due to the growing share of online sales and one-off
items resulting from the takeover of former Praktiker/Max Bahr locations.

Furthermore, earnings were held back throughout the entire period under
report by cost increases mainly relating to the expansion in the Hornbach
Group's internet activities. "Digitizing retail is the greatest challenge
in the DIY sector as well. Anyone unwilling or unable to invest
considerable sums in technology and infrastructure in this area will be
left behind in future", stressed Albrecht Hornbach. The Hornbach Group was
pursuing a sustainable growth strategy. "Now is the time to invest, even if
the odd quarter does not go so well. We are convinced that this approach
will pay off in the long term, but that will take staying power", added
Albrecht Hornbach.

DIY store sales up 5.9% in third quarter 

Sales at Hornbach Baumarkt AG, the largest operating subgroup (DIY retail),
grew by 5.9% to Euro 863.0 million in the period from September 1 to
November 30, 2015. In the first nine months of 2015/2016, the 153 Hornbach
DIY stores with garden centers in nine European countries increased their
net sales by 4.7% to Euro 2.8 billion. On a like-for-like basis and net of
currency items, DIY sales grew by 2.9% in the third quarter and by 1.8% in
the first nine months of the 2015/2016 financial year. This growth was
driven above all by strong demand from DIY customers at Hornbach's stores
outside Germany. Adjusted sales here increased by 7.0% in the third quarter
and by 3.7% in the first nine months. This more than offset the development
in sales in the domestic business, which remained virtually unchanged on
the previous year. The Hornbach Baustoff Union GmbH subgroup increased its
net sales by 2.8% to Euro 62.2 million in the third quarter and by 1.2% to
Euro 182.4 million in the first nine months.

Hornbach launched operations at four new DIY megastores in other European
countries in the third quarter of 2015/2016 and thus completed its
expansion program for the current financial year. As of November 30, 2015,
Hornbach operated 153 DIY stores with garden centers in nine European
countries, of which 99 stores in Germany.

Earnings expectations reduced for 2015/2016

Due to the weak third-quarter earnings performance of our DIY store
business, especially in Germany, the full-year earnings targets for the
business performance of the Hornbach Group in the 2015/2016 financial year
have been updated. Accordingly, the Board of Management no longer expects
consolidated operating earnings (EBIT) for the 2015/2016 financial year as
whole to roughly match the level reported for the 2014/2015 financial year.
"We rather see EBIT as being likely to fall a maximum of 15% short of the
previous year's figure of Euro 165.1 million" is the forecast issued in the
interim report published today by the Hornbach Holding AG & Co. KGaA Group.

Note: 
The detailed interim reports of Hornbach Holding AG & Co. KGaA and Hornbach
Baumarkt AG can be downloaded online under "Publications":
www.hornbach-group.com.

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

<pre>


Key figures                                       3rd         3rd         ±
                                              Quarter     Quarter
Hornbach Holding AG & Co. KGaA Group1)
(in Euro million, unless otherwise stated)  2015/2016   2014/2015      in %

Net sales                                       925.6       875.8       5.7
of which Hornbach Baumarkt AG subgroup          863.0       814.9       5.9
- Germany                                       480.4       477.4       0.6
- Other European countries                      382.5       337.5      13.3
Like-for-like sales growth (DIY)                 2.9%        1.0%
of which Hornbach Baustoff Union GmbH
subgroup                                         62.2        60.5       2.8
Gross margin (as % of net sales)                35.8%       36.7%
EBIT                                             21.3        37.2     -42.7
Consolidated net income2)                        11.6        22.6     -48.6
Earnings per share (Euro)                        0.71        1.22     -41.8


</pre>

<pre>


Key figures                                       9 Months  9 Months    ±

Hornbach Holding AG & Co. KGaA Group1)
(in Euro million, unless otherwise stated)       2015/2016 2014/2015 in %

Net sales                                          2,980.2   2,851.4  4.5
of which Hornbach Baumarkt AG subgroup             2,796.4   2,669.8  4.7
- Germany                                          1,596.5   1,560.9  2.3
- Other European countries                         1,199.8   1,108.9  8.2
Like-for-like sales growth (DIY)                      1.8%      4.9%
of which Hornbach Baustoff Union GmbH subgroup       182.4     180.2  1.2
Gross margin (as % of net sales)                     36.9%     37.2%
EBIT                                                 172.5     191.2 -9.8
Consolidated net income2)                            116.7     120.6 -3.2
Earnings per share (Euro)                             5.94      6.15 -3.4


</pre>

<pre>


Misc. key figures                      November 30,  February 28,         ±
                                               2015          2015
Hornbach Holding AG & Co. KGaA Group1)
(in Euro million, unless otherwise                                     in %
stated)

Shareholders' equity as % of total
assets                                        53.2%         51.7%
Number of DIY stores with garden
centers                                         153           146       4.8
Sales area of DIY stores with garden
centers in 000 m²                             1,772         1,704       4.0
Number of employees                          17,320        16,455       5.3


</pre>

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

1)  Previous year's figures adjusted due to IFRIC 21; please see Note 1 in
the Nine-Month Interim Report 2015/2016
2)  Including minority interests pursuant to IFRS


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21.12.2015 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 WeinstraÃ┬če                            
                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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425133 21.12.2015