German DIY chain Hornbach’s turnover and profit grew a lot in the past fiscal year, which ended 28 February 2017. Particularly its Dutch division performed very well.
Consumer invests once more
Hornbach’s total 2016 turnover grew 4.9 % to 3.94 billion euro and the Netherlands posted double-digit growth for the second year in a row. “This fiscal year was even better than the previous, which solidified our base for sustainable turnover and profit growth in the next few years. It is clear consumers are willing to invest again and that the home market is on the move again. The entire industry benefits, but our results have outgrown everyone else’s”, CEO Evert de Goede said.
The company also performed well online, with an online presence in six European countries, with “above average” growth numbers. “The border between offline and online is fading and that is why Hornbach’s sales channels have completely merged. This allows us to service our customers in every step of the customer journey in a professional way.”
Two new Dutch stores
The strong turnover result helped grow Hornbach’s EBIT 14 % to 156.8 million euro, but because of increased tax pressure compared to the year before, net profit dropped 8 % to 89.9 million euro.
Hornbach Baumarkt, which focuses on the group’s 156 DIY markets and garden centers, grew 5 % in 2016 and the non-German markets achieved a 5.1 % like-for-like turnover growth. In Germany itself, like-for-like turnover grew 1.4 %.
In 2017, the company will continue to focus on expansion, including two new stores in Amsterdam and The Hague.
