HORNBACH Group delivers solid performance in Q2 2024/25

• Consolidated half-year net sales in line with prior year’s period
• HORNBACH successfully expands market sharein several countries – overall customer frequency increased by +1.6% in 6M
• Successful management of inventories, costs and margins results in an adjusted EBIT of EUR 265.4 million (+ 19.9% y-o-y)
• Earnings per share in 6M 2024/25 increased to EUR 10.78 (+37.7%)
• Full-year outlook remains unchanged in light of macroeconomic challenges in the EU and subdued consumer sentiment

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

Q2 2024/25: June 1, 2024 to August 31, 2024; 6M 2024/25: March 1, 2024 to August 31, 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, September 25, 2024.

The HORNBACH Group (HORNBACH Holding AG & Co. KGaA Group; ISIN: DE0006083405) successfully delivered strong earnings in the second quarter (Q2) 2024/25, building on its solid performance in the first quarter. Consolidated net sales of EUR 1,640.1 million (-1.7%) were partially affected by unfavourable weather conditions in June as well as continued consumer caution, especially regarding big-ticket spending and discretionary categories. Focused operational execution led to an adjusted EBIT of EUR 119.0 million, (+6.3% y-o-y) in Q2, which was primarily driven by gross margin improvement (+1.3pp y-o-y) and strict cost discipline. In total, half-year 2024/25 net sales were in line with prior year’s period (EUR 3,445.8 million; +0.1%), and adjusted EBIT increased to EUR 265.4 million (+19.9%). Accordingly, earnings per share in 6M 2024/25 increased to EUR 10.78 compared to EUR 7.83 in the previous year’s period. Given the lackluster economic development in the EU and ongoing soft consumer sentiment the forecast for the full-year 2024/25 remains unchanged. Sales are expected slightly above the previous year’s level (EUR 6,161 million) and adjusted EBIT at or slightly above the level of the 2023/24 financial year (EUR 254.2 million).

“We delivered strong Q2 and half-year results despite the overall subdued consumer sentiment and intense travel activity over the summer. Although the rise in real wages in most European countries has not yet translated into a bigger appetite for large scale renovation projects, we are very satisfied with our sales figures. They remain well above the pre-covid level, even on a like-for-like basis. That said, the desire to create personalized, sustainable living spaces is still driving DIY and home improvement spending as these activities remain an integral part to people’s lives, which is also reflected in the increased customer frequency in our first half-year”, said Albrecht Hornbach, CEO of HORNBACH Management AG.

Erich Harsch, CEO of HORNBACH Baumarkt AG, stated: “Our customers appreciate the high-quality advice provided by our sales team as well as our industry-leading digital platforms, with apps and an online shop that are closely integrated with our stores. With our every-day-low-price strategy and comprehensive service offers, which we are continually extending, we are comprehensively addressing the needs of our customers – especially in times when budgets are tight. The fact that we are on the right track is confirmed by our top rankings in consumer surveys such as “Kundenmonitor” in Germany and “Retailer of the Year” in the Netherlands”.

At HORNBACH Baumarkt AG, the largest operating subgroup, half-year net sales increased by 0.7% to EUR 3,251.2 million (6M 2023/24: EUR 3,228.1 million). On a like-for-like basis and exchange rate adjusted, sales increased by 0.7% in the first half of the financial year (6M 2023/24: -1.3%). As of August 31, 2024, the subgroup operated a total of 171 DIY megastores with garden centers and online shops in nine European countries.

Net sales and like-for-like growth

In Germany, half-year net sales of HORNBACH Baumarkt subgroup increased by 0.2% to EUR 1,566.5 million (6M 2023/24: EUR 1,563.5 million), while like-for-like sales were up by 0.4% (6M 2023/24: -2.2%). Net sales outside of Germany grew by 1.2% to EUR 1,684.8 million (6M 2023/24: EUR 1,664.6 million). On a like-for-like basis and exchange rate adjusted, sales in Other European Countries increased by 1.0% (6M 2023/24: +0.3%). The international share of sales of HORNBACH Baumarkt AG subgroup stood at 51.8% (6M 2023/24: 51.6%).

Online sales (including Click & Collect) accounted for 12.5% of HORNBACH Baumarkt’s total sales in the first half of the financial year (6M 2023/24: 13.2%), remaining well above pre-Covid levels. Compared with the previous year’s period, online sales declined by 4.5% to EUR 405.7 million in 6M 2024/25.

HORNBACH Baumarkt continued to increase its market share in Germany as well as across most international markets. In the 2024 calendar year to date (January to July), the market share of HORNBACH Baumarkt (GfK³⁾) rose to 14.9% (2023: 14.8%) in Germany, to 37.5% in Czechia (2023: 36.1%), to 27.5% in the Netherlands (2023: 26.5%) and to 14.3% in Switzerland (2023: 13.9%).

The HORNBACH Baustoff Union GmbH (HBU) subgroup continued to be affected by the ongoing weakness in the German construction industry, recording half-year sales of EUR 197.3 million (6M 2023/24: EUR 212.9 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 half of 2024/25

The half-year adjusted EBIT of HORNBACH Group increased by 19.9% to EUR 265.4 million (6M 2023/24: EUR 221.3 million) due to a favorable spring season as well as a solid performance over the summer. As such, the adjusted EBIT margin during the same period improved to 7.7% (6M 2023/24: 6.4%). Gross margin came in at 34.9% (6M 2023/24: 33.3%) as it continued to benefit from normalized core commodity prices and a healthier product mix. Due to ongoing cost discipline, total costs increased less than gross profit, despite partially accounting for necessary salary raises in the first half of the year.

Adjusted EBIT in the HORNBACH Baumarkt subgroup increased by 24.1% to EUR 242.2 million (6M 2023/24: EUR 195.1 million). HORNBACH Baustoff Union subgroup reported an adjusted EBIT of EUR 5.5 million (6M 2023/24: EUR 6.6 million) and HORNBACH Immobilien subgroup recorded EUR 32.2 million (6M 2023/24: EUR 32.8 million).

Earnings per HORNBACH Holding share increased to EUR 10.78 (6M 2023/24: EUR 7.83).

Outlook for 2024/25 unchanged

In light of the lackluster economic environment in the EU and subdued consumer sentiment, HORNBACH’s outlook remains unchanged. The Group continues to expect net sales in the financial year 2024/25 slightly above⁴⁾ the previous year’s level (EUR 6,161 million) and an adjusted EBIT at or slightly above³⁾ the level of the 2023/24 financial year (EUR 254.2 million), with gross margins stabilizing at the current higher levels.

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 Half-Year Financial Report of the HORNBACH Holding AG & Co. KGaA Group for Q2/6M 2024/25 is available online at: www.hornbach-holding.de.

The analyst and investor update call is scheduled for 8:30 AM CEST today, September 25, 2024 (English). A live broadcast is accessible via the following link: https://channel.royalcast.com/hornbach/#!/hornbach/20240925_1

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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