Hornbach: considerable decline in profits situation

19.06.2019 − 

In the 2018/2019 reporting year (28 February) Hornbach Group was confronted by significant declines in revenue. The EBITDA decreased by 10.6% to €234.7m. The EBITDA margin was 5.4%. Concerning the EBIT a 25.2% decline to €120.6m was recorded, the EBIT margin fell to 2.8%. The EBIT adjusted to account for non-operative special effects decreased by 18.6% to €134.9m. Hornbach was originally aiming for an adjusted EBIT at the preceding year’s level. At €89.5m, pre-tax profit decreased. The consolidated annual surplus amounted to €75.1m, down 21.5% on the previous year.

The decline in results is attributed to the unscheduled cost development. Within the scope of the balance sheet press conference on 27 May particular reference was made to the over-proportional increase in personnel and operating costs in the fourth quarter. Restructuring and maintenance measures to improve market presence in terms of brick and mortar business were factors which contributed to the higher operating costs. At some €196m, investment costs were considerably higher than the volume of between €160-180m originally intended. The unscheduled expenses included the repurchasing of three stores which were previously rented.

Turnover of the Hornbach Group increased by 5.3% to €4.362bn, in contrast. In Germany €2.376bn was generated, representing an increase of 2.8%. In other European countries turnover increased by 8.6% to €1.986bn. At the end of the financial year, the entire Hornbach Group employed 21,055 persons - up 7.3% on the previous year.

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