HORNBACH delivers robust nine-month result driven by stable sales and gross margin

• Consolidated net sales slightly up in Q3 on the back of positive organic development across Europe
• HORNBACH continued to expand market sharein several countries – with overall customer frequency increasing by +1.6% in 9M 2024/25
• Effective inventory and cost management as well as improved gross margins result in an adjusted EBIT of EUR 300.0 million (+11.4% y-o-y)
• Earnings per share in 9M 2024/25 increased to EUR 11.84 (+23.4%)
• Full-year earnings outlook remains unchanged in anticipation of typical seasonal performance in Q4

Table 1: Key figures HORNBACH Holding AG & Co. KGaA Group

Q3 2024/25: September 1, 2024 to November 30, 2024; 9M 2024/25: March 1, 2024 to November 30, 2024

¹⁾ Excluding currency items; including BODENHAUS and online sales

²⁾ Adjusted to exclude non-operating income and expenses

Rounding up or down may lead to discrepancies between percentages and totals. Percentage figures calculated on basis of EUR 000s.

Bornheim (Palatinate), Germany, December 20, 2024.

HORNBACH Group (HORNBACH Holding AG & Co. KGaA Group; ISIN: DE0006083405) increased sales by 1.3% to EUR 1,505.1 million in the third quarter (Q3) 2024/25, benefitting from organic growth across Europe. Overall sales development, however, continued to be affected by consumer caution, especially regarding big-ticket spending and discretionary purchases. Q3 adjusted EBIT came in at EUR 34.6 million (-28.1% y-o-y) in line with expectations, partly influenced by necessary salary raises. In total, 9M 2024/25 net sales were in line with prior year’s period (EUR 4,950.8 million; +0.5%), and adjusted EBIT increased to EUR 300.0 million (+11.4%) based on continued improvement in gross margins and successful cost management. Accordingly, earnings per share in 9M 2024/25 increased to EUR 11.84 compared to EUR 9.59 in the previous year’s period. The earnings forecast remains unchanged given the solid development in 9M 2024/25 despite ongoing macroeconomic challenges. Adjusted EBIT is expected at or slightly above the level of the 2023/24 financial year (EUR 254.2 million). Sales are expected to be at the prior year level (EUR 6,161 million) and in line with development over the first nine months of the year.

“We delivered a strong nine-month result and were able to gain further market share in most of our operating countries. As an interconnected retailer, it is essential that we meet customer demand across all channels while simultaneously maintaining price leadership. Achieving this requires highly efficient processes and stringent cost management – something we are continuously working on”, said Albrecht Hornbach, CEO of HORNBACH Management AG.

Erich Harsch, CEO of HORNBACH Baumarkt AG, stated: “Despite the challenging consumer environment, we are very satisfied with customer engagement and are confident of our upcoming fiscal year results. Our presence in several European countries has strengthened our business and we will continue to grow organically in Europe where we see attractive opportunities for expansion. At the end of February, we will reopen our store in Nuremberg followed by additional store openings in Germany, Austria, and Romania in 2025/26.”

HORNBACH Baumarkt achieves solid net and like-for-like sales growth

At HORNBACH Baumarkt AG, the largest operating subgroup, net sales in the first nine months of 2024/25 increased by 1.1% to EUR 4,659.2 million (9M 2023/24: EUR 4,608.7 million). On a like-for-like basis and exchange rate adjusted, sales increased by 1.1% over the same period (9M 2023/24: -2.2%). As of November 30, 2024, the subgroup operated a total of 171 DIY megastores with garden centers and online shops in nine European countries.

In the nine-month period, the international share of sales of HORNBACH Baumarkt subgroup increased to 52.2% (9M 2023/24: 51.7%) based on net sales in the segment “Other Europe” growing by 2.0% to EUR 2,431.1 million (9M 2023/24: EUR 2,383.4 million). On a like-for-like basis and exchange rate adjusted, sales in “Other Europe“ increased by 1.8% (9M 2023/24: -0.9%). Against a challenging market backdrop, HORNBACH Baumarkt subgroup also performed well in Germany delivering net sales at the prior year’s level (9M 2024/25: EUR 2,228.0 million; 9M 2023/24: EUR 2,225.2 million), while like-for-like sales were up by 0.4% (9M 2023/24: -3.5%).

Online sales (including Click & Collect) remain an established key pillar of the Group’s value creation and accounted for 12.4% of HORNBACH Baumarkt’s total sales in the first nine months of the financial year (9M 2023/24: 12.9%). Compared with the previous year’s period, online sales declined by 3.0% to EUR 578.0 million in 9M 2024/25.

HORNBACH Baumarkt AG continued to increase its market share in Germany as well as across most international markets. In the calendar year to date (January to October 2024), the market share of HORNBACH Baumarkt (GfK³⁾) rose to 15.1% (2023: 15.0%) in Germany, 37.7% in Czechia (2023: 36.2%), 27.8% in the Netherlands (2023: 26.9%), and 14.5% in Switzerland (2023: 14.1%).

The HORNBACH Baustoff Union GmbH subgroup continued to be affected by the ongoing weakness in the German construction industry, recording sales of EUR 295.4 million during the reporting period (9M 2023/24: EUR 317.2 million). The subgroup currently operates 39 builders’ merchant outlets in south-western Germany and in France close to the German border.

Earnings significantly improved in the first nine months of 2024/25

The 9M 2024/25 adjusted EBIT of HORNBACH Group increased by 11.4% to EUR 300.0 million (9M 2023/24: EUR 269,4 million), resulting in an adjusted EBIT margin of 6.1% (9M 2023/24: 5.5%). This is mainly due to a favorable spring season in Q1 as well as continued gross margin improvement. Over the nine-month period gross margin improved 1.3 percentage points to 34.6% (9M 2023/24: 33.3%) as it continued to benefit from normalized core commodity prices in combination with ongoing product innovation and range rejuvenation. As expected, necessary salary raises increased the cost base in Q3 compared to the previous year’s quarter. However, over the nine-month period the total cost increase was limited to +1.5%, while gross profit rose by +4.3%.

Adjusted EBIT in the HORNBACH Baumarkt subgroup increased by 15.2% to EUR 266.7 million (9M 2023/24: EUR 210,2 million). HORNBACH Baustoff Union subgroup reported an adjusted EBIT of EUR 7.0 million (9M 2023/24: EUR 8.3 million) and HORNBACH Immobilien subgroup recorded EUR 48.3 million (9M 2023/24: EUR 48.6 million).

Earnings per HORNBACH Holding share increased to EUR 11.84 (9M 2023/24: EUR 9.59).

Earnings outlook for 2024/25 unchanged

With the projected typical seasonal performance in the fourth quarter, HORNBACH Group’s earnings forecast for the full year 2024/25 remains unchanged. The Group continues to expect adjusted EBIT at or slightly above⁴⁾ the level of the 2023/24 financial year (EUR 254.2 million), with gross margins stabilizing at the current higher levels. Net sales in the financial year 2024/25 are expected at the previous year’s level4) (EUR 6,161 million) and in line with development over the first nine months of the year.

Table 2: Miscellaneous key figures HORNBACH Holding AG & Co. KGaA Group

³⁾ Source: GfK DIY-TSR (DIY stores > 1.000 sqm)

⁴⁾ Guidance nomenclature: Sales “at previous year's level” = -1% to +1% | “slight” = +/- 2% to +/- 5% | “significant” = changes of more than 6%.
Adj. EBIT “at previous year's level” = -5% to +5% | “slight” = +/- 5% to +/- 12% | “significant" = > +/- 12%.

⁵⁾ Of which 169 HORNBACH DIY stores with garden centers and two BODENHAUS outlets

⁶⁾ Sales area BHB: Closed building (warm or cold): 100%; covered open space (cold): 50%; building material drive-in (cold): 50%; non-covered open space (cold): 25%.

⁷⁾ Number of employees including passive employees

Note
The Quarterly Statement of the HORNBACH Holding AG & Co. KGaA Group for Q3/9M 2024/25 is available online at: .

The analyst and investor update call is scheduled for 8:30 AM CET today, December 20, 2024 (English). A live broadcast is accessible via the following link:

About HORNBACH Group

HORNBACH Group is an independent, family-run retail group under the umbrella of HORNBACH Holding AG & Co. KGaA, which is listed on the Frankfurt Stock Exchange and represented in the SDAX. The largest subsidiary, HORNBACH Baumarkt AG, operates 171 DIY megastores with garden centers (incl. specialist stores) and online shops in nine European countries. The Group also includes HORNBACH Baustoff Union, a regional builders' merchant company with 39 locations in southwestern Germany and France, as well as HORNBACH Immobilien AG, which develops retail real estate for the Group. In the financial year 2023/24 (reporting date: February 29, 2024), the HORNBACH Group generated net sales of EUR 6.2 billion, making it one of the five largest DIY and garden retail companies in Europe. The Group has a workforce of around 25,000 employees.
 

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