BORNHEIM (dpa-AFX) - DIY group Hornbach Holding has benefited from warmer weather in March and April at the beginning of its new financial year. Due to a more subdued June and persistently subdued consumer sentiment, the company remains cautious about the year as a whole. "We remain cautious, as it is difficult for us to gauge our customers' appetite for renovation projects in the summer", said Erich Harsch, CEO of Hornbach Baumarkt AG, in a statement on Tuesday. Investors were nevertheless pleased with the results for the first quarter: the SDax-listed share gained around three percent, thus extending its annual increase to more than 20 percent.

Turnover for the three months to the end of May rose by 1.8% year-on-year to a good 1.8 billion euros. According to the report, customers primarily bought plants and garden products in the spring season. In May, however, rainfall in the southwest and south of Germany slowed down sales.

Because the Management Board paid strict attention to expenditure, the operating result adjusted for special items (adjusted EBIT) rose by a good third to 146.4 million euros. Before minority interests, a profit of 100 million euros remained - a good 40 percent more than in the previous year.

In contrast, the start to the second quarter (to the end of August) was weaker, while the industry continued to struggle with a gloomy consumer mood. Albrecht Hornbach, CEO of Hornbach Management AG, added that the brightening conditions have not yet been reflected in higher spending by our customers, particularly on large, long-term projects.

Accordingly, the company confirmed its forecast. In the twelve months to the end of February 2025, net sales are expected to be "slightly" above the previous year's figure of 6.16 billion euros. The Management Board can imagine an increase of two to five percent compared to the previous year.

Operating profit adjusted for special items (adjusted EBIT) is expected to exceed the previous year's figure of EUR 254.2 million "slightly" at the most. However, there is quite a wide range: the managers believe that both a decline of up to five percent and an increase of up to twelve percent in operating profit are possible./ngu/mne/zb