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Hornbach pressing ahead with expansion abroad

21.10.2019 − 

In the last few weeks, Hornbach Baumarkt has opened two more stores abroad. In doing so, the company meanwhile operates 159 retail outlets, 96 of them in Germany and 63 elsewhere in Europe. The new store in Prešov, Slovakia, was opened on 11 September. Hornbach has invested a total of approximately 22m € in buying land, construction, and shopfitting. A salesfloor are of around 12,000 m² is available on the roughly 50,000-m² site. Prešov is the fourth market operated by Hornbach in Slovakia. Two DIY stores are located in the capital of Bratislava and another in Košice in the country’s eastern region. Hornbach’s range in Slovakia currently covers roughly 120,000 items, which can also be ordered through the national online shop that was launched around three years ago.

The DIY store group opened its seventh outlet in Sweden on 19 September. The new store in Kristianstad, Schonen, perpetuates the small-area concept that Hornbach had launched last year. A range comprising some 25,000 items is offered on a salesfloor area of approximately 7,500 m². The new DIY store in Kristianstad is located in the “C4 Shopping” shopping centre. The property has been rented for a term of ten years. The group has invested a total of 4m € in the facility.

The group boosted its net sales revenue by 8.7 % to 2.445bn € in the first half-year of the business year 2019/2020 (end February). 1.256bn of this was generated in Germany and 1.189bn € at the other European locations. Adjusted for sales floor area and exchange rates, the growth in sales revenue amounted to 8.3 %. After a good first quarter, the growth gathered pace again as the second quarter progressed. The earnings position continued to improve as well. Besides the positive development in sales revenue and costs, the company also attributes this to the effects of the switch of its first application of the new lease accounting system adherent to IFRS 16 on 1 March. EBITDA achieved in the first half-year surpassed the reference figure for last year by 66.9 % at 287.3m €. EBIT increased 31.3 % to 170.9m €. Adjusted for non-recurring items, EBIT amounted to 171.1m €. The pre-tax result rose by 15.8 % to 142.2m € and the profit for the period by 17.0 % to 106.5m €.

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