Hornbach Baumarkt Q1 Net Declines, But Sales Rise; Confirms Annual Sales Outlook

Hornbach Baumarkt AG (HBAPF.PK), a German DIY-store chain, on Wednesday posted a decline in earnings for the first quarter, amidst inflationary pressures, higher transportation and logistics costs which weighed on the gross margins. However, on a per share basis, its profit climbed from last year.

For the fiscal 2022-23, the company has confirmed its sales outlook. However, amidst rising costs and inflation, it expects a decline in earnings before interest and taxes (EBIT).

For the quarter ended in May, Bornheim-headquartered firm posted a consolidated net income before minority interests at 106.9 million euros, compared with 118 million euros last year.

Earnings per share were at 6.14 euros as against 5.83 euros of previous year quarter.

Consolidated earnings before taxes moved down to 141.2 million euros, from 157.5 million euros posted for the same period of 2021-22.

Hornbach registered an EBIT of 148.6 million, versus 169.1 million euros, on year-on-year basis, whereas on adjusted basis, EBIT also fell to 148.3 million euros, compared with 169.1 million euros.

Net sales were recorded at 1.813 billion euros, higher than 1.678 billion euros of previous year quarter.

Looking ahead, for full year, the Group confirmed its full-year 2022-23 sales outlook with an expectation for a slight increase from its last year sales of 5.875 billion euros.

For the fiscal 2022-23, adjusted EBIT level is expected to decline around a low double digit percentage range, below 362.6 million euros of 2021-22.

Albrecht Hornbach, CEO of Hornbach Management AG, said: “We observe that purchasing and logistics costs have continued to rise in recent weeks and expect inflation to remain elevated for the foreseeable future. Given the ongoing uncertainty, we prefer to adopt a cautious approach to our earnings outlook.”

Source: Read Full Article