Hornbach: Difficult start to 2023, but good prospects thanks to energy-related renovations

The German DIY chain Hornbach assesses the start to the 2023/2024 financial year as restrained. This became clear at the group's annual press conference. In view of the ongoing inflation and product price dynamics, as well as the unusually poor weather conditions at the start of the DIY peak season in the first quarter of 2023/24, the Board of Management remains cautious in its outlook and expects net sales for the group as a whole to remain at around the same level as in the 2022/23 financial year. In the first quarter, the Board of Management expects earnings to be significantly lower than in the same period last year. The medium-term prospects, however, are viewed with confidence. Reasons for this are seen in positive industry and consumer trends, especially in energy-efficient renovation.

"Despite the inflationary environment and thus lower purchasing power, sales increased in the 2022/2023 financial year," explains Albrecht Hornbach. As in previous years, he says, this financial year had been characterised by a high degree of uncertainty. "I encounter a lot of uncertainty," says Hornbach.

Hornbach Baumarkt AG, i.e. the DIY division within the Hornbach Holding group, increased its sales by 6.3 per cent to EUR 5.8431 bn in the 2022/2023 financial year. At the press conference, the Board of Management confirmed the figures announced in advance in March. In Germany, DIY sales grew by 2.9 per cent to EUR 2.8609 bn, and abroad by 9.8 per cent to EUR 2.9821 bn. Like-for-like growth at the DIY stores amounted to 3.6 per cent. The Hornbach group as a whole reported growth of 6.6 per cent to EUR 6.2631 bn. In a three-year comparison, the company achieved growth of 28 per cent.

Inflation along the entire value chain and cost pressure in particular weighed on the Group's margins, according to the company. However, it has managed to respond to people's needs, it said. "It is particularly pleasing that the number of professional customers has reached a good level," Erich Harsch said at the press conference. "We see a lot of potential there for the future."

The company also emphasised the gain in market share in Germany and in all international markets compared to pre-pandemic levels. According to GfK, in calendar year 2022, Hornbach DIY stores had a market share of 14.9 per cent in Germany compared to 13.1 per cent in 2019, 17.8 per cent in Austria (2019: 17.0 per cent), 34.4 per cent in the Czech Republic (2019: 33.3 per cent), 26.1 per cent in the Netherlands (2019: 21.1 per cent) and 13.5 per cent in Switzerland (2019: 12.0 per cent).

The online share of total sales is now 14.1 per cent and accounts for EUR 823 mio. "We were able to confirm that online retailing has established itself in the do-it-yourself sector," says Albrecht Hornbach. However, we are currently seeing a decline in demand for click & collect.