Hornbach-Baumarkt-AG Group

44 GROUP MANAGEMENT REPORT Earnings Performance
Earnings Performance
Key earnings figures of the HORNBACH-Baumarkt-AG Group
Key figure
2012/2013 2011/2012 Change
(€ million, unless otherwise stated)
Net sales 3,020 3,001 0.6%
EBITDA 155.8 184.3 (15.5)%
EBIT 99.3 128.4 (22.7)%
Earnings before taxes 74.4 106.5 (30.1)%
Consolidated net income 52.3 77.4 (32.4)%
EBITDA margin 5.2% 6.1%
EBIT margin 3.3% 4.3%
Tax rate 29.7% 27.3%
(Differences due to rounding up or down to nearest € million)
Earnings performance of the HORNBACH-Baumarkt-AG Group
Consistent with expectations, the earnings of the HORNBACH-
Baumarkt-AG Group for the 2012/2013 financial year fell
short of the previous year’s record figures. This was mainly
due to a weakening like-for-like sales performance in the DIY
store segment, a development that accelerated in the second
half of the year, and the resultant deterioration in cost ratios.
Consolidated earnings before interest, taxes, depreciation and
amortization (EBITDA) dropped by 15.5% to € 155.8 million
(2011/2012: € 184.3 million). The EBITDA margin (as a percentage
of net sales) slipped to 5.2%, down from 6.1% in the
previous year. Consistent with the forecast we issued after the
first nine months, the consolidated operating earnings (EBIT)
of € 99.3 million fell short of the previous year’s figure of
€ 128.4 million (minus 22.7%). The EBIT margin is reported at
3.3% (2011/2012: 4.3%).
A positive one-off operating item of € 5.5 million relating to
electricity tax in Germany was credited to earnings and recognized
under other income and expenses in the 2012/2013
financial year (please see comments on DIY store segment).
Consolidated earnings before taxes (EBT) dropped by 30.1%
to € 74.4 million (2011/2012: € 106.5 million). This decrease,
higher in percentage terms than that in EBIT, was primarily
due to the deterioration in net interest expenses from minus
€ 19.3 million to minus € 24.0 million. The reduction in this
item mainly resulted from lower interest income than in the
previous year and from the additional interest expenses incurred
upon the premature repayment of the corporate bond
(ISIN XS0205954778, WKN: A0C4RP) as of February 25, 2013,
which originally had a term running until November 15, 2014.
This factor was countered by an improvement in negative
currency items (including forward exchange transactions)
from minus € 2.5 million to minus € 0.9 million. Overall, net
financial expenses deteriorated from minus € 22.0 million to
minus € 24.9 million.
Consolidated net income fell by 32.4% to € 52.3 million
(2011/2012: € 77.4 million). The Group’s tax rate increased
from 27.3% to 297%. The return on sales after taxes decreased
from 2.6% to 1.7%. Earnings per share (please see
Note 9) are reported at € 1.64 (2011/2012: € 2.43).