HORNBACH Group Reports Decline in Net Income and EPS

HORNBACH Group has reported a decrease in net income and earnings per share for the third quarter. Despite a rise in sales, the decline in adjusted EBIT raises concerns. The company's unchanged earnings forecast suggests stability in the face of challenges.

Date: 20-12-2024

AI Rating: 4

HORNBACH Group's latest report highlights several key financial metrics that could influence investor sentiment. The net income before minority interests has decreased from 29.3 million euros to 17.7 million euros, indicating a significant drop.

The earnings per share (EPS) also fell from 1.76 euros to 1.06 euros, showing a concerning trend. This decline in both net income and EPS could lead investors to reassess the company's profitability and future outlook.

Adjusted EBIT came in at 34.6 million euros, down 28.1% from the same period last year. This sharp decline reflects operational challenges, partly driven by necessary salary increases, which may erode profit margins moving forward.

On a more positive note, sales did increase by 1.3%, reaching 1.50 billion euros for the third quarter. This growth in revenue suggests that the company is still managing to attract customers despite a challenging consumer environment.

The CEO, Erich Harsch, expressed optimism about customer engagement and the company's expansion plans in Europe. However, the unchanged earnings forecast for the full year 2024/25 could be seen as neutral in the context of the declining profit numbers.

In summary, while HORNBACH Group shows some positive indicators in terms of sales growth and a stable revenue outlook, the declines in net income, EPS, and adjusted EBIT indicate potential challenges that could affect stock prices negatively.

Stocks: HBAPF.PK