HORNBACH Group delivers accelerating growth in Q3 2022/23 – sales up 10.4% y-o-y

• Continued strong demand for construction and DIY products amid rising product prices: Consolidated sales up 10.4% in Q3 2022/23 and 6.7% in 9M 2022/23
• 9M 2022/23 like-for-like sales ahead of previous year (+3.4%) and significantly above pre-pandemic levels (3-year like-for-like +29.5%)
• Adjusted EBIT with EUR 326.3 million in 9M 2022/23 well above pre-pandemic levels by +36%, and in line with expectations down 17.0% against previous year’s record performance
• Full-year outlook for 2022/23 as of June 13, 2022 reconfirmed: slight sales growth and adjusted EBIT level to decline around a low double digit percentage range compared to previous year

Table 1: Key figures HORNBACH Holding AG & Co. KGaA Group for the 3rd Quarter (Q3) and 9 Months (9M)

_{1) In constant currencies; includes sales from all stores that have been open for at least one year including online sales}

_{²⁾ Adjusted to exclude non-operating income and expenses}

_{³⁾ IFRS; including minorities}

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

Bornheim (Palatinate), Germany, December 22, 2022.

The HORNBACH Group (HORNBACH Holding AG & Co. KGaA Group; ISIN: DE0006083405) significantly increased its sales in the third quarter (Q3) 2022/23 (September 1 to November 30, 2022) compared with previous year's third quarter by 10.4% on the back of continued steady and strong customer demand. In the first 9 months (9M) 2022/23 (March 1 to November 30, 2022) consolidated sales grew by 6.7% to EUR 5,009.7 million (2021/22: EUR 4,693.2 million). A 3-year like-for-like figure of 29.5% underscoring the significant acceleration in growth during the Covid pandemic. Adjusted EBIT (operating earnings adjusted to exclude non-operating earnings items) for 9M 2022/23 at EUR 326.3 million came in below the record figure reported for the previous year (EUR 393.1 million), however well above 9M 2019/20 with plus 36%. For the current financial year 2022/23 management continues to expect a slight sales growth and the adjusted EBIT level to decline around a low double digit percentage range versus previous year – reconfirming the revised guidance as of June 13, 2022.

“Private and professional customers continue to execute construction and home improvement projects despite increased product prices. With our reliable every-day-low-price strategy and strong private brands we are in a good position to be the partner of choice in this challenging macroeconomic environment. The significant sales growth in Q3 was not only driven by inflation growth, but also by increased footfall in our stores.”, commented Erich Harsch, CEO of HORNBACH Baumarkt AG.

DIY stores with like-for-like growth of 3.4% in 9M 2022/23

At HORNBACH Baumarkt AG, the largest subgroup (DIY retail) which operated a total of 170 DIY megastores with garden centres and online shops in nine European countries as of November 30, 2022, net sales in 9M 2022/23 increased by 6.4% to EUR 4,667.1 million (2021/22: EUR 4,385.0 million). On a like-for-like basis and exchange rate adjusted, DIY sales showed a subgroup-wide increase of 3.4% (2021/22: -0.1%).

Net sales at the HORNBACH DIY stores in Germany increased by 3.3% to EUR 2,292.4 million in 9M 2022/23 (2021/22: EUR 2,218.3 million). Like-for-like sales were up 2.9% (2021/22: -0.8%). Net sales outside of Germany grew by 9.6% to EUR 2,374.7 million (2021/22: EUR 2,166.7 million). The international share of sales at the HORNBACH Baumarkt AG subgroup rose from 49.4% to 50.9%. On a like-for-like basis and exchange rate adjusted, sales in Other European Countries grew by 4.0% (2021/22: 5.8%).

Online sales (including Click & Collect) continued to be well above pre-Covid levels and accounted for 14.5% of HORNBACH Baumarkt subgroup’s total sales in 9M 2022/23 (2019/20: 9.7%). Compared with previous year’s period where stationary sales were still restricted in a number of regions, as expected, demand for Click & Collect in particular, was significantly lower and has normalized again. Sales from direct deliveries were on previous year’s level. In total, online sales declined y-o-y by 12.1% to EUR 677.1 million in 9M 2022/23, but increased by 11.8% in Q3 2022/23 compared to the previous year.

The HORNBACH Baustoff Union GmbH (HBU) subgroup increased its sales in 9M 2022/23 by 11.7% to EUR 343.2 million (2021/22: EUR 307.2 million). The subgroup currently operates 39 builders’ merchant outlets including two locations close to the border in France (Alsace/Lorraine) and 37 locations in south-western Germany, thereof two locations in Saarland (Germany) acquired as of July 1, 2022.

Adjusted EBIT significantly above pre-Covid levels, but below previous year's figure

With EUR 326.3 million the adjusted EBIT of HORNBACH Group in 9M 2022/23 came in 36% above pre-Covid levels (2019/20: EUR 240.2 million). Compared to the record number of 9M 2021/22, adjusted EBIT declined by 17.0%, mainly due to inflationary pressures and cost pressures weighing on the Group’s gross margin. Earnings were also impacted by increased store operating and personnel costs. With 6.5% the adjusted EBIT margin in 9M 2022/23 is slightly ahead of the pre-pandemic 9M 2019/20 EBIT margin at 6.4%.

Earnings per share at EUR 13.08 were only slightly down from the previous year (2021/22: EUR 13.66) due to the higher stake in HORNBACH Baumarkt AG following the delisting which was successfully concluded as of February 28, 2022.

Outlook reconfirmed: Slight sales growth and low double-digit percentage decline in adjusted EBIT expected for the 2022/23 financial year

HORNBACH Group confirms its full-year 2022/23 outlook as revised on June 13, 2022 still expecting a slight increase in net sales from the 2021/22 financial year of EUR 5,875.0 million and the full-year adjusted EBIT level to decline around a low double digit percentage range, below the record number of EUR 362.6 million in FY 2021/22. In Q4 HORNBACH Baumarkt plans one new store opening in Leipzig (Germany).

“With ongoing uncertainty around consumer sentiment and the possibility of energy shortages in the coming months, we remain cautious on the sales outlook for 2022/23. HORNBACH has a long history which has shown the importance of investing in the company and employees in difficult times. We will continue to look for opportunities to increase market share in the countries where we are present and have confidence in the strength and resilience of our business”, said Albrecht Hornbach, CEO of HORNBACH Management AG.

New corporate website launched

Since December 8, 2022 all information on HORNBACH Group is available on our newly designed corporate website. You can find all our quarterly updates here: https://www.HORNBACH-holding.de/en/investor-relations/reports-presentations.

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

_{4) of which 168 HORNBACH DIY stores with garden centers and two BODENHAUS outlets}

_{⁵⁾ 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%.}

_{⁶⁾ Number of employees as of November 30, including passive employees}

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 170 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 2021/22 (reporting date: February 28, 2022), the HORNBACH Group generated net sales of EUR 5.9 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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