Hornbach presents itself in strong shape

5/27/2010, 11:30 AM (Source: GlobeNewswire)
HORNBACH HOLDING AG / Hornbach presents itself in strong shape processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.


Successful 2009/2010 financial year:

* Consolidated sales growth of 3.7% to Euro 2.85 billion
* Further disproportionate increase in operating earnings strength of retail
business
* DIY stores with garden centers: growth driven by Germany and Western Europe
* Solid financial foundation: equity ratio rises to 42%
* Dividend increase proposed


Frankfurt/Main, May 27, 2010. The Hornbach Group can report on a successful
2009/2010 financial year (February 28, 2010). Sales at the overall Hornbach
Holding AG Group increased by 3.7% to Euro 2.85 billion. Operative EBIT showed
disproportionate growth of 14% to Euro 152.5 million, marking the third
consecutive year of earnings growth in the Group's core business (DIY retail and
builders' merchants). Unlike in the previous year, yet consistent with the
budget, no accounting gains were generated on real estate sales in the
2009/2010 year under report. As a result, all of the Hornbach Group's key
earnings figures as reported were lower than in the previous year. At
Euro 151.5 million, consolidated operating earnings (EBIT) thus fell short of
the figure of Euro 179.1 million for the 2008/2009 financial year, but
nevertheless significantly exceeded the 2007/2008 figure (Euro 105.5 million).



"The 2009/2010 financial year went very well. We once again earned more from our
operating business than in the previous year. Given the equity ratio of 42% we
have now attained and the renewed increase in liquidity, the overall Group is in
splendid shape", commented Albrecht Hornbach, Chairman of the Board of
Management, at today's annual results press conference in Frankfurt. In view of
this, the management will be proposing an increase in the dividend for approval
by shareholders at this year's Annual General Meeting.



Consolidated sales rise by 3.7% to Euro 2.85 billion

Net sales at the Hornbach Holding AG Group grew by 3.7% to Euro 2,853 million in
the past financial year (2008/2009: Euro 2,752 million). The
Hornbach-Baumarkt-AG subgroup, which operated 131 DIY megastores with garden
centers across Europe at the balance sheet date, increased its sales by 3.4% to
Euro 2,686 million (2008/2009: Euro 2,599 million). On a like-for-like basis,
excluding newly opened stores, sales at the DIY megastores with garden centers
grew by 0.7% across the Group. This growth was driven above all by pleasing
momentum in Germany and the West European countries as a whole, while the
implications of the economic crisis prevented the East European business from
matching the previous year's high figures. The Hornbach Baustoff Union GmbH
(HBU) subgroup, which posted sales growth of 8.8% to Euro 166 million
(2008/2009: Euro 153 million), also made a major contribution to the Group's
successful performance in the 2009/2010 financial year.



Pleasing earnings performance

The overall Hornbach Holding AG Group can look back on a pleasing earnings
performance in the 2009/2010 financial year, and once again met its earnings
forecast. "The Hornbach-Baumarkt-AG and Hornbach Baustoff Union GmbH subgroups
posted further year-on-year growth in their operating earnings contributions",
remarked Albrecht Hornbach. This increase was chiefly driven by like-for-like
sales growth, a slight improvement in the gross margin and more favorable
pre-opening and administration expense ratios.



EBIT amounted to Euro 151.5 million in the past financial year. The previous
year's figure of Euro 179.1 million had included accounting gains of
Euro 50.4 million due to real estate transactions. Net of these non-operating
earnings components, EBIT increased by 14% in the core business in 2009/2010.
Operative EBIT at the Hornbach-Baumarkt-AG subgroup rose by 13%. What's more,
the Hornbach Baustoff Union GmbH subgroup also further boosted its earnings
performance. EBIT here doubled from Euro 1.2 million to Euro 2.4 million.



Investments of Euro 97 million

Given the high degree of macroeconomic uncertainty in Europe, the Hornbach Group
scaled back its expansion in the 2009/2010 financial year compared with previous
years. Two new Hornbach DIY megastores with garden centers were opened in the
year under report, as against four new store openings one year earlier. The
volume of cash-effective investments also reduced as a result, falling from
around Euro 130 million to Euro 97 million in the past financial year. These
were fully financed from the cash flow of Euro 184 million from operations
(2008/2009: Euro 144 million).



Solid finances at Hornbach

Further improvements were seen in the capital structure of the Hornbach Group in
2009/2010. The equity ratio rose from 39.1% to 42.4% at the Hornbach Holding AG
Group, and from 41.5% to 45.5% at the Hornbach-Baumarkt-AG subgroup. Net debt at
the overall Group was reduced by more than 15% to Euro 423 million. Cash and
cash equivalents increased from Euro 275 million to Euro 335 million. Moreover,
the Hornbach Group can also draw on unutilized credit lines of around
Euro 470 million. Disposable liquidity thus totaled more than Euro 800 million
at the balance sheet date on February 28, 2010.



Increased dividend proposed to shareholders

A higher level of dividend distribution is to be proposed to the Annual General
Meetings of Hornbach-Baumarkt-AG on July 8, 2010 and of Hornbach Holding AG on
July 9, 2010. The dividend on the publicly listed Baumarkt share (ISIN
DE0006084403) should thus rise from Euro 0.87 to Euro 1.00. Hornbach Holding AG
plans to increase its dividend from Euro 1.14 to Euro 1.34 per listed preference
share (ISIN DE0006083439) and from Euro 1.08 to Euro 1.28 per ordinary share.



Outlook

Albrecht Hornbach sees the overall Group maintaining its growth course in the
current 2010/2011 financial year as well. Says Hornbach: "We are confident that
we will achieve consolidated sales growth in a medium single-digit percentage
range". Based on current budgets, the Hornbach Group's EBIT should fall slightly
short of the 2009/2010 financial year. "We will be investing more in important
projects in the current year so as to expand and sustainably boost our market
position", stressed Albrecht Hornbach.



Key Figures for the 2009/2010 Financial Year (March 1, 2009 - February 28, 2010)



---------------------------------------------------------------------------
Key Figures of the HORNBACH HOLDING AG GROUP
-------------------------------------------------------+-------------------
(in Euro million unless otherwise stated) 2009/2010 | 2008/2009 ± %
-------------------------------------------------------+-------------------
Net sales 2,853 | 2,752 3.7
-------------------------------------------------------+-------------------
Gross margin (as % of sales) 36.1% | 36.0%
-------------------------------------------------------+-------------------
Operative EBIT(1)) 152.5 | 133.6 14.2
-------------------------------------------------------+-------------------
non-operating earnings components(2)) -1.0 | 45.5
-------------------------------------------------------+-------------------
EBIT 151.5 | 179.1 -15.4
-------------------------------------------------------+-------------------
Consolidated net income 82.1 | 112.9 -27.2
-------------------------------------------------------+-------------------
Number of employees at HORNBACH Group 13,214 | 13,169 0.3
-------------------------------------------------------+-------------------
Investments 96.5 | 129.8 -25.8
-------------------------------------------------------+-------------------
Total assets 2,032.9 | 1,995.8 1.9
-------------------------------------------------------+-------------------
Shareholders' equity 861.5 | 780.5 10.4
-------------------------------------------------------+-------------------
Shareholders' equity as % of total assets 42.4% | 39.1%
-------------------------------------------------------+-------------------







---------------------------------------------------------------------------
Key Figures of the HORNBACH-Baumarkt-AG Subgroup
-------------------------------------------------------+-------------------
(in Euro million unless otherwise stated) 2009/2010 | 2008/2009 ± %
-------------------------------------------------------+-------------------
Net sales 2,686 | 2,599 3.4
-------------------------------------------------------+-------------------
     of which in Germany 1,577 | 1,534 2.8
-------------------------------------------------------+-------------------
     of which in other European countries 1,109 | 1,065 4.2
-------------------------------------------------------+-------------------
Like-for-like sales growth 0.7% | 1.4%
-------------------------------------------------------+-------------------
Gross margin (as % of sales) 36.8% | 36.6%
-------------------------------------------------------+-------------------
Operative EBIT(1)) 114.9 | 101.7 12.9
-------------------------------------------------------+-------------------
Non-operating earnings components(2)) 0.1 | 34.8
-------------------------------------------------------+-------------------
EBIT 114.9 | 136.5 -15.8
-------------------------------------------------------+-------------------
Consolidated net income 68.3 | 94.9 -28.1
-------------------------------------------------------+-------------------
Number of employees 12,640 | 12,576 0.5
-------------------------------------------------------+-------------------
Investments 68.2 | 81.7 -16.6
-------------------------------------------------------+-------------------
Total assets 1,439.4 | 1,425.2 1.0
-------------------------------------------------------+-------------------
Shareholders' equity 654.7 | 591.3 10.7
-------------------------------------------------------+-------------------
Shareholders' equity as % of total assets 45.5% | 41.5%
-------------------------------------------------------+-------------------


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



(1))   EBIT net of non-operating earnings components

(2))   Accounting gains of Euro 50.4 million at the overall HORNBACH HOLDING AG
Group and of Euro 37.4 million at the HORNBACH-Baumarkt-AG subgroup were
generated from real estate disposals in the 2008/2009 financial year. Further
details can be found under Note 6 (Other income and expenses) in the notes to
the consolidated financial statements in the 2009/2010 Annual Reports.




Note
The Annual Reports of the HORNBACH HOLDING AG Group and the HORNBACH-Baumarkt-AG
subgroup for the 2009/2010 financial year are available online at:
www.hornbach-group.com






[HUG#1418983]



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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;


Annual Report HORNBACH HOLDING AG Group 2009/2010: http://hugin.info/130429/R/1418983/369171.pdf
Annual Report HORNBACH-Baumarkt-AG Group 2009/2010: http://hugin.info/130429/R/1418983/369172.pdf
Press Release FY 2009/2010: http://hugin.info/130429/R/1418983/369169.pdf
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