BORNHEIM (dpa-AFX) - Customers will also have to dig deeper into their pockets than before in DIY stores this year. At operator Hornbach, buyers and shoppers are still unimpressed. The high demand for DIY and home improvement supplies continued in the third quarter of the financial year, Hornbach Holding, which is listed on the SDax, announced in Bornheim on Thursday. And visitor numbers at the do-it-yourself (DIY) stores are also on the rise. But at the same time, cost pressure continues to cause the company problems. Thus, although sales of the operator holding climbed significantly in the third fiscal quarter, earnings fell.

One trader therefore criticized the margin in particular, which was weaker than expected. On the stock market, however, investors were initially relaxed in the morning, with the share climbing two percent at the start, making it one of the favorites on the SDax.

"Despite higher product prices, our private and commercial customers are continuing to implement construction and renovation projects," said Erich Harsch, CEO of Hornbach Baumarkt AG, which is the largest subgroup under the holding company's umbrella. He added that the sales growth at the DIY stores was not only due to inflationary effects, "but also to increased visitor numbers at our stores".

Group-wide, sales at the holding company rose year-on-year by more than ten percent to 1.55 billion euros in the third financial quarter (to November 30). The DIY stores contributed the largest chunk, with sales up ten percent to 1.43 billion euros, with online retail showing slightly stronger growth. However, the separately managed building materials business also flourished with sales growth of 16 percent.

Group-wide, however, earnings before interest and taxes (EBIT) adjusted for special items fell by almost 13 percent to 48.9 million euros. According to the figures, this was due to the negative impact of higher operating and personnel costs, as a result of which profitability (adjusted Ebit margin) deteriorated by 0.8 percentage points to 3.2 percent. The bottom line was a profit of 27.2 million euros for the shareholders of Hornbach Holding, compared with 31.6 million euros a year earlier.

In an interview with the financial news agency dpa-AFX in September, CFO Karin Dohm explained the increase as being due, among other things, to higher costs for raw materials and transport as a result of the Corona pandemic, as well as to rising energy prices. In addition, the Group can only pass on the higher costs to customers with a certain delay due to the heavily advertised "permanent low price guarantee".

In the summer, management had already lowered its profit targets for fiscal 2022/2023 after the first fiscal quarter due to the problems with supply chains and cost inflation - these have now been confirmed. Accordingly, adjusted EBIT is expected to fall by a low double-digit percentage - compared with a record figure of 362.6 million euros in the previous year. At that time, the Group had still benefited considerably from the Corona pandemic, when people had discovered a desire to renovate by moving back into their own rooms.

The successful year of 2021/22 had also provided Hornbach Holding with record sales of Euro 5.9 billion - compared with which sales are only expected to rise slightly in the current financial year, which runs until the end of February. The Board of Management is maintaining this forecast despite the strong growth seen in the past quarter. "In view of the ongoing uncertainty among consumers and possible energy bottlenecks in the coming months, we remain cautious in our sales forecast for 2022/23," Hornbach commented./tav/nas/stk