Hornbach's DIY megastores with garden centers have performed very well in the past quarter "after exploding demand in March", with its home market Germany as its biggest contributor.
Over 1 billion euro in turnover
In its first quarter of its broken fiscal year (from 1 March to 31 May), Hornbach managed a record turnover of 1.035 billion euro, 16 % more than a year before. On a like-for-like basis, growth reached 14.6 %. "The DIY demand has exploded in March", CFO Roland Pelka explained in its interim report. Last year, the chain had to deal with a long-lasting winter, on top of the recession.
"The domestic business once again accounted for the strongest growth momentum. We can nevertheless also point to pleasing sales growth in the eight countries outside Germany." Foreign turnover grew 11.7 % to 402.1 million euro, while the like-for-like growth was 8.2 % excluding exchange rates effects.
Hornbach's strongest growth was in its consumer division Baumarkt (+ 16.4 % to 976.6 million euro), even though its 27 Hornbach Baustoff Union stores (for professionals) also managed to grow their turnover 10.1 % to 58 million euro.
71 % more profit
Its operational profit rose 71 % to arrive at 87.3 million euro, a direct consequence of "higher profit margins and a more advantageous operational and administrative costs", the company said.
After opening new stores in Lübeck and Prague, Hornbach employs 15,639 people and 143 DIY megastores with garden centers, 9 in the Netherlands.