Hornbach Group exceeds the three billion euro mark

3/17/2011, 7:01 AM (Source: GlobeNewswire)
HORNBACH HOLDING AG /
Hornbach Group exceeds the three billion euro mark
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Trading Statement for the 2010/2011 Financial Year


5.7% improvement in consolidated sales at Hornbach Holding AG - 2.6% growth in
like-for-like sales at DIY stores and garden centers - Germany as key growth
driver



Neustadt/Weinstrasse, March 17, 2011. The Hornbach Group, one of Europe's
largest operators of DIY megastores with garden centers, sped up its sales
growth from quarter to quarter in the course of the financial year
(March 1, 2010 to February 28, 2011). Based on preliminary figures published
today, full-year net sales at the Hornbach Holding AG Group increased by 5.7% to
Euro 3,017 million (previous year: Euro 2,853 million). This pleasing growth was
at the upper end of the company's forecast. The Hornbach-Baumarkt-AG subgroup,
which was operating 133 DIY megastores with garden centers in nine countries at
the balance sheet date (previous year: 131), raised its net sales by 5.6% to
Euro 2,836 million (previous year: Euro 2,686 million). Of these, 42.1% were
attributable to other European countries (previous year: 41.3%). Germany and
other West European countries accounted for the greatest growth momentum. The
Hornbach Baustoff Union GmbH subgroup boosted its net sales by 8.4% to
Euro 180 million (previous year: Euro 166 million).



"Our sales growth gained tempo from quarter to quarter. German consumers in
particular were in optimal DIY shape given the substantial economic upturn and
optimistic income expectations. Anyone planning larger-scale renovation projects
or a new home for themselves now has greater financial leeway once again. That's
just the target group that drives our business," commented Albrecht Hornbach,
Chairman of the Board of Management of Hornbach Holding AG.



Net sales at the 92 Hornbach stores in Germany rose by 4.0% to
Euro 1,641 million in the 2010/2011 financial year (previous year:
Euro 1,577 million). On a like-for-like basis, i.e. excluding sales at newly
opened stores, DIY sales in the company's home market grew by 3.8% (previous
year: 1.8%), thus exceeding the sector average. As the year progressed,
Germany's role as key growth driver became ever more pronounced. Following a
mixed spring season, like-for-like sales in the second quarter grew by 4.9% and
then by 6.4% in the third quarter. Despite the early onset of winter in December
2010, with chaotic weather conditions in some cases affecting the whole of
Germany, Hornbach generated like-for-like sales growth of 8.2% in the fourth
quarter - the highest level of quarterly growth for seven years. "We are very
satisfied with our performance, especially with the surge in the second half of
the year. This has enabled us to increase our market share in Germany once
more," stressed Albrecht Hornbach. As a percentage of the total gross sales at
all German DIY stores and garden centers, amounting to around Euro 22 billion,
Hornbach's market share thus rose from 8.7% to 8.9%.



Outside Germany (other European countries), Hornbach increased its sales,
including sales at the two stores newly opened in Breda (Netherlands) and
Bucharest (Romania), by 7.7% to Euro 1,195 million (previous year: Euro 1,109
million). The international stores operated by the Hornbach-Baumarkt-AG subgroup
thus raised their share of sales from 41.3% to 42.1%. Like-for-like sales net of
currency items rose by 0.8% in other European countries in the past financial
year, thus virtually making up for the slight dip in the previous year (minus
0.9%). Including currency items for non-euro countries (Czech Republic, Romania,
Sweden, Switzerland), the international business generated like-for-like sales
growth of 4.7%.



Hornbach posted solid growth rates, in some cases exceeding those in Germany, in
all West European country markets and in Slovakia in 2010/2011. "What's also
pleasing is that we significantly reduced the decline in sales in the Czech
Republic and especially in Romania. Consumers here have been hard hit by the
financial crisis and government savings measures. However, we are now seeing a
gradual return to normality," resumed Albrecht Hornbach. Overall, like-for-like
DIY sales at the Baumarkt subgroup grew by 2.6%, and even by 4.1% including
currency items.


Hornbach Baustoff Union GmbH: Sales soar by 8.4%

The Hornbach Baustoff Union GmbH subgroup, operating on a regional basis in
south-western Germany, once again made an above-average contribution towards the
Group's sales growth. Against a backdrop of recovering residential construction
volumes and high consumer confidence, sales at the builders' merchant outlets
surged by 8.4% to Euro 180 million (previous year: Euro 166 million), more or
less three times as fast as sector sales in Germany.



Hornbach has not made any changes to its earnings forecast for the 2010/2011
financial year. Accordingly, operating earnings (EBIT) should slightly exceed
the level reported for the 2009/2010 financial year both at the Hornbach Holding
AG Group and at the Hornbach-Baumarkt-AG subgroup. Full information about the
Group's earnings performance will be published together with the annual
financial statements at the Annual Results Press Conference on May 26, 2011.




+------------------------------------------------------------------------------+
|Key Figures of the 2010/2011 2009/2010 Change |
|Hornbach Holding AG |
|Group |
| |
|(in Euro million unless financial year financial year like-for-like (%)*|
|otherwise stated) in % |
+------------------------+--------------+--------------+----+------------------+
|Net sales at overall | | | |  |
|Group | 3,017| 2,853| 5.7| |
+------------------------+--------------+--------------+----+------------------+
|Net sales at Hornbach- | | | | |
|Baumarkt-AG subgroup | 2,836| 2,686| 5.6| 2.6|
+------------------------+--------------+--------------+----+------------------+
|of which in Germany | 1,641| 1,577| 4.0| 3.8|
+------------------------+--------------+--------------+----+------------------+
|of which in other | | | | 0.8|
|European countries | 1,195| 1,109| 7.7| |
+------------------------+--------------+--------------+----+------------------+
|Net sales at Hornbach | | | |  |
|Baustoff Union GmbH | | | | |
|subgroup | 180| 166| 8.4| |
+------------------------+--------------+--------------+----+------------------+
|Number of DIY stores | 133| 131|  |  |
+------------------------+--------------+--------------+----+------------------+
|Sales areas as per BHB | | | |  |
|(000 m²) | 1,514| 1,480|  | |
+------------------------+--------------+--------------+----+------------------+
|Average DIY store size | | | |  |
|(m²) | 11,400| 11,300|  | |
+------------------------+--------------+--------------+----+------------------+

*adjusted for currency items

Rounding up may lead to discrepancies between percentages and totals.
Calculation of percentage figures based on € 000s.




--- End of Message ---

HORNBACH HOLDING AG
Le Quartier Hornbach 19 Neustadt an den Weinstraße Germany

WKN: 608343;ISIN: DE0006083439;
Listed: Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;


Trading Statement 2010/2011 of Hornbach Group:
http://hugin.info/130429/R/1497411/433104.pdf




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