HORNBACH (HBH) Q3 24/25 earnings summary

Executive summary

• Nine-month sales rose 0.5% year-over-year to €4,950.8 million, with market share gains in most countries and strong performance outside Germany.

• Customer frequency increased 1.6% year-over-year, with Q3 showing recovery in average ticket size and strong non-German European markets.

• E-commerce share stabilized at 12.4% of sales, with growth in click-and-collect and online sales involving in-store contact.

• Like-for-like DIY sales up 1.1%, with positive development in most countries, aided by favorable weather in Q1.

• Market share increased in key countries, notably Netherlands (+0.9 ppt) and Czechia (+1.5 ppt).

Financial highlights

• Gross margin improved by 1.3 percentage points year-over-year to 34.6%, with gross profit up 4.3% to €1,713.1 million.

• Adjusted EBIT increased by 11.4% to €300.0 million, with a margin of 6.1%.

• Free cash flow more than doubled to €149.8 million, and cash flow from operating activities rose 20.1%.

• Net financial debt reduced by 5.3% to €1,138.8 million, and debt ratio improved to 2.3 from 2.5.

• Earnings per share increased to €11.84 (+23.4% YoY).

Outlook and guidance

• Full-year adjusted Group EBIT expected to be at or slightly above last year (€254.2 million), with gross margin stabilization at current higher levels.

• Net sales for the full year anticipated to be at the previous year's level (€6,161 million), reflecting a cautious outlook.

• CAPEX guidance for FY 2024/25 set at €160 million–€180 million, below previous year.

• Q4 expected to be seasonally quieter, but organization is well prepared for market recovery.