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Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Successful first half of 2008/2009: - Significant growth in sales and earnings - Consolidated sales up by 6.7% - Like-for-like sales growth in Germany and abroad - Disproportionate earnings growth - New HORNBACH locations in Sweden and Rumania
Frankfurt, September 30, 2008. The HORNBACH Group, one of Europe's largest opera-tors of DIY stores and garden centers, has reported a successful first half to its 2008/2009 financial year (March 1 to August 31, 2008). Net sales at the overall HORNBACH HOLDING AG Group rose by 6.7 % to € 1.526 billion (previous year: € 1.429bn). At the largest subgroup, HORNBACH-Baumarkt-AG, sales also rose by 6.7% to reach € 1.439 billion (previous year: € 1.349bn). Thanks in particular to the growth momentum at German stores, like-for-like sales at the DIY megastores with garden centers (excluding newly opened stores) improved by 1.9% in the second quar-ter. Key earnings figures showed substantially stronger growth than sales in the first half of the financial year, with operating earnings (EBIT) at the overall HORNBACH HOLDING AG Group jumping from € 86 million to € 142 million.
"We are entirely satisfied with our performance in the first half", commented Albrecht Hornbach, Chairman of the Board of Management of HORNBACH HOLDING AG, to journalists in Frankfurt am Main on Tuesday. "We are especially pleased by the like-for-like sales growth of 1.7% reported for Germany, which benefited in particular from strong growth of 2.8% in the second quarter. This means that we are well ahead of the sector average this year as well." For Albrecht Hornbach, this provides "clear evidence that our concept of project-based DIY stores is the right one." By focusing on the high quality of its product range, professional advice and permanently low prices, HORNBACH had won the respect of home improvement enthusiasts and professional tradesmen alike and had extended its lead over the competition. "This shows that by implementing the right strategy, it is possible to successfully sidestep the sluggishness of the overall retail sector", he added.
The HORNBACH Group can report a highly positive earnings performance. Operating earnings (EBIT) at the overall HORNBACH HOLDING AG Group surged by 64.6% to € 141.9 million in the first half (previous year: € 86.2m). Consolidated earnings before taxes jumped by 78.9% to € 124.8 million (previous year: € 69.8m). Basic earnings per preference share are reported at € 9.76 (previous year: € 6.27).
At the HORNBACH-Baumarkt-AG subgroup, which operates the DIY megastores with garden centers, operating earnings (EBIT) rose by 58.3% to € 114.4 million (previous year: € 72.2m). Consolidated earnings before taxes increased by 70.3% to € 105.4 million (previous year: € 61.9m), while basic earnings per Baumarkt share amounted to € 5.03 (previous year: € 3.32).
HORNBACH will be opening up to five new DIY megastores with garden centers in the current financial year. The first location in Stockholm and a second outlet in Bucharest were launched with great success in July already. Preparations for new stores in Hamburg, Biel (Switzerland) and Brasov (Rumania) are now progressing at full steam.
HORNBACH currently operates 127 DIY megastores with garden centers in nine European countries. The average sales area per store amounts to just under 11,200 square meters. Germany accounts for 91 locations. The international stores are located in Austria (11), the Netherlands (8), the Czech Republic (6), Switzerland and Sweden (3 each), Slovakia and Rumania (2 each) and Luxembourg (1).
Optimistic outlook for the overall 2008/2009 financial year
Regardless of the general economic slowdown, Albrecht Hornbach remains optimistic with regard to the financial year as a whole. "There is a great backlog of housing modernization and renovation work in Germany and across Europe. The trend towards saving energy is also a key growth driver in our business. As a project-based DIY chain with great competence in terms of our product range and the advice we offer, we are optimally positioned vis-à-vis the competition. We expect HORNBACH to continue to outperform the overall DIY market by a clear margin in the second half of 2008/2009 as well."
The Chairman of the Board of Management affirmed the forecast for the overall 2008/2009 financial year. Both the overall HORNBACH HOLDING AG Group and the HORNBACH-Baumarkt-AG subgroup would achieve net sales growth in a medium single-digit percentage range. The companies' operating earnings (EBIT) would rise "far more rapidly than sales", in each case exceeding the figures for the 2006/2007 financial year (€ 119m at the overall Group and € 96m at the subgroup).
Key Figures for 2nd Quarter and Half-Year 2008/2009
Key Figures HORNBACH HOLDING AG Group 2nd Quarter 2nd Quarter Change (in € million, unless otherwise 2008/2009 2007/2008 in % stated) Net sales 747.7 696.5 7.4 of which in other European countries 290.1 255.5 13.5 Gross margin as % of net sales 35.6% 35.6% EBITDA 92.8 65.6 41.4 EBIT 75.1 47.4 58.2 Consolidated earnings before taxes 66.3 39.1 69.5 Consolidated net income * 49.8 39.9 24.8 Earnings per preference share in € 4.92 4.12 19.4 Investments 25.8 49.6 -48.0
Key Figures HORNBACH HOLDING AG Group 1st Half 1st Half Change (in € million, unless otherwise stated) 2008/2009 2007/2008 in % Net sales 1,525.5 1,429.2 6.7 of which in other European countries 584.7 516.2 13.3 Gross margin as % of net sales 35.9% 35.8% EBITDA 176.8 123.6 43.0 EBIT 141.9 86.2 64.6 Consolidated earnings before taxes 124.8 69.8 78.9 Consolidated net income * 95.7 61.4 55.9 Earnings per preference share in € 9.76 6.27 55.7 Investments 61.0 118.4 -48.5
* pursuant to IFRS including minority interests.
Misc. Key Figures of the HORNBACH August 31, 2008 February 29, Change HOLDING AG Group 2008 (in € million, unless otherwise in % stated) Total assets 2,058.4 1,902.0 8.2 Shareholders' equity 776.6 687.6 12.9 Shareholders' equity as % of total assets 37.7% 36.1% Number of employees 12,998 12,710 2.3
Key Figures HORNBACH-Baumarkt-AG Group 2nd Quarter 2nd Quarter Change (in € million, unless otherwise 2008/2009 2007/2008 in % stated) Net sales 699.8 653.3 7.1 of which in other European countries 290.0 255.5 13.5 Like-for-like sales growth 2.4% -1.1% Gross margin as % of net sales 36.4% 36.3% EBITDA 79.8 54.7 45.9 EBIT 65.9 39.8 65.6 Consolidated earnings before taxes 61.8 34.6 78.6 Consolidated net income 47.1 32.2 46.3 Earnings per share in € 3.00 2.07 44.9 Investments 20.1 33.9 -40.7
Key Figures HORNBACH-Baumarkt-AG Group 1st Half 1st Half Change (in € million, unless otherwise stated) 2008/2009 2007/2008 in % Net sales 1,439.0 1,349.3 6.7 of which in other European countries 584.6 516.2 13.3 Like-for-like sales growth 1.9% 1.8% Gross margin as % of net sales 36.6% 36.4% EBITDA 142.1 103.3 37.5 EBIT 114.4 72.2 58.3 Consolidated earnings before taxes 105.4 61.9 70.3 Consolidated net income 78.9 51.7 52.4 Earnings per share in € 5.03 3.32 51.5 Investments 32.9 57.2 -42.5
Misc. Key Figures of the August 31, February 29, Change HORNBACH-Baumarkt-AG Group 2008 2008 (in € million, unless otherwise in % stated) Total assets 1,465.2 1,350.9 8.5 Shareholders' equity 584.9 515.7 13.4 Shareholders' equity as % of total assets 39.9% 38.2% Number of stores 127 125 1.6 Sales area in 000 m² (based on BHB) 1,417 1,385 2.3 Average store size in m² 11,160 11,079 0.7 Number of employees 12,392 12,110 2.3
Rounding up or down may lead to discrepancies between totals. Calculation of percentage figures based on € 000s.
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HORNBACH HOLDING AG Le Quartier Hornbach 19 Neustadt an den Weinstraße Germany
WKN: 608343; ISIN: DE0006083439 ; Index: CDAX, Prime All Share, SDAX; Listed: Prime Standard in Frankfurter Wertpapierbörse, Amtlicher Markt in Frankfurter Wertpapierbörse;
