International DIY News
Hornbach Reports Unexpected Q3 Sales Decline
The HORNBACH Holding AG & Co. KGaA Group (HORNBACH Group) witnessed an unexpected reduction in earnings in the third quarter of 2018/19.
This resulted above all from an unsatisfactory earnings performance in November 2018, particularly at the HORNBACH Baumarkt AG subgroup.
Based on initial, preliminary figures, Q3 operating earnings excluding non-operating items (adjusted EBIT) at the HORNBACH Group fell year-on-year by around 31% to just under € 20 million (2017/18: € 28.8 million).
Consolidated sales improved by 7.7% to € 1,085 million in Q3 2018/19, but gross profit rose less rapidly than sales. This was mainly due to higher procurement prices which, given competitive considerations, could not be offset by higher retail prices. The growth in gross profit was insufficient to offset the increase in store and administration expenses.
As a result, adjusted EBIT for the first nine months of 2018/19 fell by around 11% to approximately € 181 million (2017/18: € 203.1 million). The Board of Management deems it unlikely that this shortfall in earnings can be made up in the fourth quarter. It now rather expects adjusted operating earnings (adjusted EBIT) to fall more than 10% of the previous year’s figure.
The Board of Management is upholding its sales forecast without amendment. This provides for sales growth in a medium single-digit percentage range – following nine-month sales growth of 4.8% to € 3,475 million.
Source : Hornbach Group
Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.
Don't miss out on all the latest, breaking news from the DIY industry
