Hornbach Group with earnings growth as well

5/26/2011, 12:00 PM (Source: GlobeNewswire)


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Hornbach Group with earnings growth as well
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EBIT up 5% to Euro 159 million / Sales at DIY player grow by 5.7 percent /
Further increase in sales density and market share / Investments of more than
Euro 350 million budgeted for next two years

Frankfurt/Main, May 26, 2011. Sales at the Hornbach Group exceeded the three
billion euro mark for the first time in the past financial year, growing by
5.7 percent to Euro 3.017 billion. At Euro 159.1 million, operating earnings
(EBIT) were 5.0 percent up on the previous year's figure (Euro 151.5 million).
The S-Dax listed company thus once again met its sales and earnings forecast,
posting earnings growth in its core DIY retail and builders' merchant businesses
for the fourth year in succession.

By the end of the year under report on February 28, 2011, which saw two new
store openings, Hornbach had grown not just in absolute terms, but also managed
yet again to raise its productivity per square meter of sales area. On a like-
for-like basis, i.e. excluding newly added sales areas, the company improved its
sales by 2.6 percent on average in the nine countries where it operated 133
megastores at the balance sheet date. Its total workforce grew by just over 550
to almost 13,800 employees in the year under report, with around 8,400 employees
working in Germany.

Like-for-like sales at the 92 Hornbach stores in Germany even grew by
3.8 percent. The company thus once again outperformed its sector and expanded
its share of the domestic DIY market from 8.7 percent to 8.9 percent. The
Hornbach-Baumarkt-AG subgroup, the most important part of the Group (Hornbach
Holding AG Group), increased its sales by 5.6 percent to Euro 2.8 billion. At
Euro 119.1 million, its operating earnings for the year under report were, as
forecast by the company, slightly up on the previous year's figure
(Euro 114.9 million).

Hornbach Baustoff Union GmbH (HBU) also added momentum to the results, posting
substantial sales and earnings growth. The builders' merchant business reported
sales of Euro 180.3 million, 8.4 percent more than one year earlier. HBU thus
grew almost three times as fast as the sector average.

Equity ratio reaches 43 percent

"Our Group's sales were at the upper end of the forecast range in the past
financial year. We therefore made further good progress on our course of
sustainable growth. At the same time, we also managed to boost our earnings
strength. Given the broad range of financing sources available to us, we have a
high degree of security and flexibility to finance our further growth",
commented Albrecht Hornbach, Chairman of the Board of Management of the Hornbach
Group, at the annual results press conference in Frankfurt am Main. "Our company
stands for solidity and substance." Hornbach has available liquidity of
Euro 475 million and an equity ratio of 43.1 percent (previous year:
42.4 percent). More than half of the real estate used is owned by the Hornbach
Group. Net debt (financial debt less cash and cash equivalents) was reduced by
more than Euro 100 million to Euro 322 million.

Three new store openings planned for current year

In its current 2011/2012 financial year, the Group will be opening two new
locations in the Czech towns of Plzen and Ostrava, and replacing a smaller store
in Sinsheim in south-western Germany with a new megastore. Investments of more
than Euro 200 million are budgeted. In its international expansion, Hornbach-
Baumarkt-AG will be focusing on expanding its network of stores in existing
country markets, as well as on sustainably modernizing existing stores.
According to Hornbach, sales for the current financial year are set to rise in a
medium single-digit percentage range. Operating earnings are expected to show
slight growth, as are like-for-like sales. In the coming 2012/2013 financial
year, the Group plans to invest Euro 150 million and further raise its pace of

Uncompromising focus on project customers

"We further reinforced our competitive position in the past year, and that was
due not least to our uncompromising focus on the needs of project customers.
It's absolutely clear that people welcome our project philosophy. Having said
that, it's not only our product range customers appreciate, but also our
competent advice and low prices", added Hornbach.

Consolidated net income at Hornbach Holding AG grew by 20.6 percent from
Euro 82.1 million to Euro 99.1 million in the 2010/2011 financial year. Earnings
per share at Hornbach Holding AG rose from Euro 8.29 to Euro 10.11 per ordinary
share and from Euro 8.35 to Euro 10.17 per preference share. The Board of
Management and Supervisory Board are proposing unchanged dividends to the Annual
General Meetings of Hornbach-Baumarkt-AG and Hornbach Holding AG on July 7, 2011
and July 8, 2011 respectively, i.e. Euro 1.00 per share at Hornbach-Baumarkt-AG,
and Euro 1.28 per ordinary share and Euro 1.34 per preference share at Hornbach
Holding AG.

Furthermore, the Annual General Meetings will also vote on capital increases
from company funds to facilitate the issue of bonus shares. By converting
revenue reserves into share capital, the number of shares at both Hornbach
Holding AG and Hornbach-Baumarkt-AG is to be doubled. This increase should
reduce the market price of the shares in nominal terms, thus enhancing the
liquidity and attractiveness of the shares, especially for private investors.
Not only that, this measure, which will not have any impact on the overall
volume of shareholders' equity, is intended to adjust the share capital of the
respective groups in line with their sustained growth.

Key earnings figures of the Hornbach Group (Hornbach Holding AG Group)

| Key figure | 2010/2011 | 2009/2010 | Change |
| (€ million, unless otherwise stated) | | | |
| Net sales | 3,017 | 2,853 | 5.7% |
| EBITDA | 228.7 | 222.1 | 3.0% |
| EBIT | 159.1 | 151.5 | 5.0% |
| Earnings before taxes | 126.8 | 115.6 | 9.7% |
| Consolidated net income | 99.1 | 82.1 | 20.6% |

Key earnings figures of the Hornbach-Baumarkt-AG subgroup

| Key figure | 2010/2011 | 2009/2010 | Change |
| (€ million, unless otherwise stated) | | | |
| Net sales | 2,836 | 2,686 | 5.6% |
| of which in Germany | 1,641 | 1,577 | 4.0% |
| of which in other European countries | 1,195 | 1,109 | 7.7% |
| Like-for-like sales growth | 2.6% | 0.7% |   |
| EBITDA | 172.6 | 168.9 | 2.2% |
| EBIT | 119.1 | 114.9 | 3.6% |

(Differences due to rounding up or down to nearest Euro million; percentage
changes calculated on basis of Euro 000s)

The Annual Reports of the HORNBACH HOLDING AG Group and the HORNBACH-Baumarkt-AG
subgroup for the 2010/2011 financial year are available online at: www.hornbach-

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Le Quartier Hornbach 19 Neustadt an den Weinstraße Germany

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

Press Release FY 2010/2011:

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Source: HORNBACH HOLDING AG via Thomson Reuters ONE

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