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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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