HORNBACH Group delivers solid performance in 2023/24 and is confident about FY 2024/25 due to strong spring season

• FY 2023/24 net sales of EUR 6.2 billion (-1.6%) as customers prioritize small tickets over big-ticket and discretionary categories
• Gross margin benefited from normalization of select core commodity prices and more favorable product mix
• Adjusted consolidated operating earnings (EBIT) decreased by 12.4% to EUR 254.2 million, in line with guided results and trading statement
• Stable dividend proposed at EUR 2.40 per share – subject to approval at the Annual General Meeting on July 5, 2024
• Outlook 2024/25: Net sales expected slightly above 2023/24 after a strong spring season, adjusted EBIT projected to be the same level or slightly above 2023/24

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

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, May 22, 2024.

HORNBACH Group (HORNBACH Holding AG & Co. KGaA Group; ISIN: DE0006083405) delivered solid results for the financial year 2023/24 (March 1, 2023 to February 29, 2024) with sales of EUR 6,161 million (-1.6%) and adjusted EBIT of EUR 254.2 million (-12.4%), in line with guidance and trading statement. For the current financial year 2024/25, HORNBACH expects an uptick in sales due to a strong spring season supported by more favorable weather conditions compared to the previous year. Adjusted EBIT in 2024/25 is projected to be similar to or slightly above 2023/24 levels, while improvements to the gross margin will be partly offset by higher personnel costs and the ongoing investments in IT projects. In accordance with its dividend policy, HORNBACH Holding will propose a stable dividend of EUR 2.40 per share to the Annual General Meeting on July 5, 2024.

“We achieved solid 2023/24 results, in line with our guidance. Given this performance amid the complex macroeconomic environment, we are confident for FY 2024/25. Moreover, the continuous successful implementation of our strategic priorities – organic growth with high-quality locations and online retail – give us confidence to deliver another solid financial year. Our customer-centric approach allows us to provide full-service solutions and a seamless digital offering to support our customers along their journey”, commented Albrecht Hornbach, CEO of HORNBACH Management AG.

Erich Harsch, CEO of HORNBACH Baumarkt AG, added: “We continue to be well positioned to not only address the ongoing macroeconomic challenges, but meet on our customers’ needs and expectations. This was seen in our last fiscal year performance. We were able to further reduce inventories despite an inflationary environment where customers tend to spend less. Compared to the last financial year, customer frequency in our stores increased by 2.0% in 2023/2024. We continued to advance our comprehensive customer services and grew our market share well above pre-pandemic levels in Germany as well as across international markets. Given the persistent economic challenges, however, we remain conservative in our forecast for the current fiscal year.”

In the calendar year 2023, the market share of HORNBACH Baumarkt (GfK³⁾) stood at 14.9% in Germany (2019: 13.1%), 17.3% in Austria (2019: 17.0%), 36.2% in the Czech Republic (2019: 33.3%), 27.1% in the Netherlands (2019: 21.1%) and 13.9% in Switzerland (2019: 12.0%).

Adjusted EBIT of HORNBACH Group at EUR 254 million in line with guidance

With EUR 254.2 million, the adjusted EBIT of HORNBACH Group in FY 2023/24 came in 12.4% below the previous year’s level (2022/23: EUR 290.1 million). This is in line with the earnings guidance published on September 15, 2023, which expected adjusted EBIT to decline by 10% to 25% compared to FY 2022/23. Adjusted EBIT benefited from sequential improvements to the gross margin given the normalization of select core commodity prices and a more favorable product mix compared to the previous year. The adjusted EBIT margin stood at 4.1% (2022/23: 4.6%).

Adjusted EBIT in the HORNBACH Baumarkt subgroup decreased by 11.9% to EUR 212.4 million (2022/23: EUR 241.0 million), HORNBACH Baustoff Union’s adjusted EBIT came in at EUR 4.7 million (2022/23: EUR 13.8 million) and HORNBACH Immobilien subgroup’s adjusted EBIT increased to EUR 63.3 million (2022/23: EUR 55.8 million).

Non-operating charges against earnings, which are mainly attributable to valuation effects in accordance with IAS 36 (impairments), decreased from EUR 31.6 million to EUR 28.4 million in the 2023/24 financial year. EBIT including non-operating effects decreased by 12.7% to EUR 225.8 million (2022/23: EUR 258.5 million).

Earnings per HORNBACH Holding share came in at EUR 7.83 (2022/23: EUR 9.83). The Management Board and the Supervisory Board will propose a stable dividend of EUR 2.40 per share in accordance with our dividend policy, subject to approval by the Annual General Meeting of HORNBACH Holding AG & Co. KGaA to be held on July 5, 2024.

Cash flow from operating activities on the Group level increased to EUR 454.9 million (2022/23: EUR 425.4 million), driven by the successful reduction of inventories and the resulting improvement in working capital. HORNBACH Group’s investments of EUR 192.6 million (2022/23: EUR 203.5 million) included investments for new store openings in the coming years, a number of store conversions and the acquisition of Seniovo. Free cash flow after investing activities and dividends increased to EUR 231.9 million (2022/23: EUR 186.5 million).

Outlook 2024/25: Uptick in sales expected based on strong spring season – despite challenging environment

Net sales in the 2024/25 financial year are expected to be slightly above the level of the 2023/24 financial year (EUR 6,161 million). The weather-related strong start to the spring season, compared to the prior year, is expected to have an overall positive impact on sales development and gross profit in the first quarter. However, amid the challenging economic backdrop, consumer sentiment is not expected to recover significantly, at present, and therefore, sales momentum is not expected to continue over the remainder of the year.

Adjusted EBIT is expected at or slightly above the level of the 2023/24 financial year (EUR 254.2 million) based on gross margins stabilizing at the higher levels achieved in Q4 2023/24.

Despite continued cost discipline, further cost increases are inevitable, which will largely result from salary adjustments following the high inflation rates in the previous year. In addition, investments in innovations and IT infrastructure as well as increasing regulatory requirements are likely to contribute to a further slight increase in central costs.

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

³⁾ GfK definition: DIY stores bigger than 1,000 sqm; Data available for Germany, Netherlands, Austria, Switzerland and Czech Republic
⁴⁾ Of which 169 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 February 28/29, including passive employees

Note
The Annual Report of the HORNBACH Holding AG & Co. KGaA Group for the 2023/24 financial year is available online at: www.hornbach-holding.de.

The press briefing on the annual results is scheduled for 11 AM today (German). A live broadcast is accessible via the following link: https://channel.royalcast.com/hornbach/#!/hornbach/20240522_1

The analyst and investor conference on the annual results is scheduled for 14 PM today (English). A live broadcast is accessible via the following link: https://channel.royalcast.com/hornbach/#!/hornbach/20240522_2

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 38 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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