HORNBACH share plummets: HORNBACH’s profit down due to inflation and costs – Slight increase in sales

Earnings before interest and taxes (EBIT), adjusted for special effects, fell by almost a quarter to 129.1 million euros in the period from June to August, as the group announced on Thursday in Bornheim, Rhineland-Palatinate. “The difference between purchase and sales prices has become smaller, so that our gross profit margin is around two percentage points below the value of the second quarter last year,” said CFO Karin Dohm in an interview with the financial news agency dpa-AFX. HORNBACH, which is listed on the SDAX, passed some of the higher purchase prices on to customers in the first half of the financial year. “Our sales prices have risen by about eight percent across the entire range.”

All things considered, HORNBACH earned EUR 90.4 million between June and August, 23.6 percent less than in the comparable period. In the meantime, the company managed to slightly increase sales to EUR 1.65 billion, above the record figure of the same period last year. Customers were particularly asking for solutions to improve energy efficiency, it said.

For the current financial year (end of February 2023), the top management confirmed the forecast. Net sales should increase slightly compared to the previous year’s figure of almost 5.9 billion euros. However, adjusted EBIT is likely to fall in the low double-digit percentage range. In the previous financial year, HORNBACH achieved a record figure of EUR 362.6 million. In mid-June, the company lowered its earnings forecast due to rising prices and ongoing supply chain problems.

In XETRA trading, the HORNBACH share temporarily lost 3.59 percent to EUR 61.70.

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BORNHEIM (dpa-AFX)

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