HORNBACH (HBH) Q2 24/25 earnings summary

Executive summary

• Net sales for H1 2024/25 were €3,455.8 million, stable year-over-year (+0.1%), with Baumarkt Subgroup sales up 0.7% and market share gains in key countries.

• Gross margin rose to 34.9%, up 1.6 percentage points year-over-year, driven by normalized commodity prices and improved product mix.

• Adjusted EBIT reached €265.4 million, up 19.9% year-over-year, and EPS increased 37.7% to €10.78.

• Free cash flow turned positive, reflecting robust operations and disciplined cost management.

• Customer satisfaction ranked highest in core markets, with top positions in Germany and the Netherlands for both in-store and online experiences.

Financial highlights

• Gross profit rose 4.8% to €1,201.9 million, with gross margin at 34.9%.

• Adjusted EBIT margin improved to 7.7% from 6.4% in the prior year.

• Free cash flow after dividend at €111.7 million for H1.

• Capital expenditure decreased 44.1% to €51.2 million.

• Equity ratio increased to 46.5%, and net leverage improved to 2.2x.

Outlook and guidance

• Full-year 2024/25 forecast unchanged: sales expected slightly above previous year, with adjusted EBIT at or slightly above 2023/24 levels.

• Gross margin anticipated to remain at current higher level.

• Majority of CapEx (€160-180 million) planned for H2.

• Tax rate expected to remain at 25% for the full year.

• One new store opening in Germany planned for H2 2024/25.