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 gross margin improvement.

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

• E-commerce share stabilized at 12.4% of Baumarkt sales, with Q3 growth driven by Click & Collect and direct delivery.

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

• Adjusted EBIT for 9M increased 11.4% to €300.0 million, while Q3 adjusted EBIT declined 28.1% due to higher personnel costs.

Financial highlights

• Gross profit up 4.3% to €1,713.1m; gross margin improved to 34.6% (+1.3pp year-over-year).

• Adjusted EBIT rose 11.4% to €300.0m (margin 6.1%, up from 5.5%).

• Free cash flow more than doubled to €149.8m (from €55.9m), reflecting strong operations.

• Cash flow from operating activities increased by 20.1%.

• EPS increased to €11.84 (from €9.59 year-over-year).

Outlook and guidance

• Full-year 2024/25 guidance unchanged: adjusted Group EBIT expected to match or slightly exceed prior year (€254.2m), with gross margin stabilization at current higher levels.

• Net sales for FY 2024/25 projected to remain at approximately the same level as previous year (€6,161 million).

• Four new stores (Germany, Austria, Romania) to open by year-end, adding 63,000 sqm of retail space.

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