HORNBACH Group had an unexpected reduction in earnings in the third quarter of 2018/19. This resulted above all from an unsatisfactory earnings performance in November 2018, particularly at the HORNBACH Baumarkt AG subgroup. Based on initial, preliminary figures, Q3 operating earnings excluding non-operating items (adjusted EBIT) at the HORNBACH Group fell year-on-year by around 31% to just under € 20 million (2017/18: € 28.8 million).
Consolidated sales improved by 7.7% to € 1,085 million in Q3 2018/19, but gross profit rose less rapidly than sales. This was mainly due to higher procurement prices which, given competitive considerations, could not be offset by higher retail prices. The growth in gross profit was insufficient to offset the increase in store and administration expenses.
As a result, adjusted EBIT for the first nine months of 2018/19 fell by around 11% to approximately € 181 million (2017/18: € 203.1 million). The Board of Management deems it unlikely that this shortfall in earnings can be made up in the fourth quarter. It now rather expects adjusted operating earnings (adjusted EBIT) to fall more than 10% of the previous year’s figure.
The Board of Management is upholding its sales forecast without amendment. This provides for sales growth in a medium single-digit percentage range – following nine-month sales growth of 4.8% to € 3,475 million.
In Central & Eastern Europe, Hornbach Group is present in Czech Republic (10 stores), Slovakia (3 stores) and Romania (6 stores).
Hornbach:
HORNBACH is an independent, family-run listed company. In the 2017/18 financial year (balance sheet date: February 28, 2018), it increased its (net) sales by 5.1 percent to more than Euro 4.1 billion. Founded in 1877, HORNBACH is the only DIY sector player with a history stretching back six generations. It currently operates 158 DIY stores and garden centers and online shops in nine countries across Europe.
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