Hornbach-Baumarkt-AG Group

GROUP MANAGEMENT REPORT Earnings Performance 45
Key earnings figures for the DIY store segment
Key figure
2012/2013 2011/2012 Change
(€ million, unless otherwise stated)
Net sales 3,019 3,000 0.6%
of which in Germany 1,741 1,729 0.7%
of which in other European countries 1,279 1,272 0.6%
Like-for-like sales growth (1.4)% 2.8%
EBITDA 107.7 152.0 (29.1)%
EBIT 74.2 115.7 (35.9)%
EBITDA margin 3.6% 5.1%
EBIT margin 2.5% 3.9%
Gross margin 37.3% 37.4%
Store expenses as % of net sales 31.1% 30.3%
Pre-opening expenses as % of net sales 0.3% 0.2%
General and administration expenses as % of net sales 4.1% 3.5%
(Differences due to rounding up or down to nearest € million)
Earnings performance of the DIY store segment
The DIY store segment comprises the operating retail business
at the HORNBACH DIY megastores with garden centers
within the Group. At the balance sheet date on February 28,
2013, we were operating 138 DIY retail outlets across Europe
(2011/2012: 134). Net sales in this segment showed slight
growth of 0.6% to € 3,019 million in the 2012/2013 year
under report (2011/2012: € 3,000 million).
In the 2012/2013 financial year, the key operating earnings
figures in the DIY store segment fell significantly short of the
high previous year’s figures. This was chiefly due to a weakening
like-for-like sales performance, particularly in countries
outside Germany. Overall, the sales momentum in the DIY
store segment slowed noticeably compared with the previous
2011/2012 financial year. As a result, cost ratios were significantly
less favorable, even though selling and store, preopening
and administration expenses as a whole were even
within their respective budget targets.
Gross margin
The gross margin almost matched the previous year’s level in
the 2012/2013 financial year under report. As a percentage of
net sales, the gross profit amounted to 37.3% (2011/2012:
37.4%). We virtually managed to offset increases in procurement
prices with the assistance of a slight rise in retail prices
and changes in our product mix. Currency items in our international
procurement activities played a negligible role in the
year under report.
Selling and store, pre-opening and administration expenses
Selling and store expenses in the DIY store segment rose by
3.3% to € 940.1 million (2011/2012: € 909.7 million), and
thus increased moderately. Personnel expenses (including
bonuses), the largest cost block within selling and store
expenses, showed growth of plus 2.3%, and thus below average
compared with this item as a whole. Not only that, the
year-on-year increase in rental and operating expenses, albeit
lower than planned, was countered by a reduction in advertising
expenses in absolute terms. Utility expenses and depreciation
were more or less at the same level as in the previous