Original-Research: HORNBACH Holding AG & Co. KGaA (von Quirin Privatbank Kapi...

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Original-Research: HORNBACH Holding AG & Co. KGaA - from Quirin Privatbank

Kapitalmarktgeschäft

27.05.2025 / 17:41 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to HORNBACH Holding

AG & Co. KGaA

Company Name: HORNBACH Holding AG & Co. KGaA

ISIN: DE0006083405

Reason for the research: Update

Recommendation: Buy

from: 27.05.2025

Last rating change:

Analyst: Ralf Marinoni

FY 2024/25: all targets achieved

HORNBACH reported a slight increase in net sales for FY 2024/25, reaching

EUR 6,200m, primarily driven by the HORNBACH Baumarkt subgroup. Gross profit

improved by 3.6%, attributed to lower raw material prices, new product

introductions, and a favorable product mix. However, operational expenses as

a percentage of sales rose due to wage increases and the SAP S/4 Hana system

migration. Adjusted EBIT rose by 6.0% to EUR 269.5m, reflecting stronger

gross margins despite ongoing investments in staff and technology. The adj.

EBIT margin increased from 4.1% to 4.3%. The company maintained a robust

balance sheet with an equity ratio of 44.1%.

HORNBACH also improved its market position, with notable market share gains

in Germany, the Netherlands, Czechia, Austria, and Switzerland. In addition,

the company demonstrated its efficient use of retail space, achieving

market-leading sales per square meter, and showed above-average growth in

the DIY sector compared to the German GDP. It also continued expanding its

product offerings through its online marketplace and app, the latter now

supporting over 4.1m customer accounts.

HORNBACH published a FY 2025/26 outlook: Net sales are expected to be at or

slightly above the level of the 2024/25 financial year. Sales growth will be

supported by recently opened stores in Nuremberg (February 26, 2025) and

Duisburg (March 26, 2025) as well as three further new openings in Austria

and Romania during FY 2025/26. According to HORNBACH, the start of the

spring season has been promising, however the volatile macroeconomic and

geopolitical environment poses continued challenges with regard to supply

chains and consumer sentiment. Therefore, the adjusted EBIT is expected to

be at the level of the past business year (EUR 269.5m) with gross margin

remaining stable.

In our opinion, Hornbach's outlook is rather cautious/conservative,

especially due to the successful start to the spring season. We therefore

confirm our Buy recommendation and the EUR 110 TP.

You can download the research here: http://www.more-ir.de/d/32736.pdf

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2146406 27.05.2025 CET/CEST

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