South Africa: Cashbuild Accquire The Building Company.

EDRA/GHIN Member, Cashbuild, is pleased to announce that it has entered into a definitive sale and purchase agreement to acquire 100% of the issued share capital of The Building Company Proprietary Limited (TBC).

TBC is a leading Southern African building materials retail and wholesale business, providing a full spectrum of services through its portfolio of 13 well-known brands across its three divisions. TBC has an established presence across the coastal regions of South Africa, comprising 160 TBC outlets and 21 franchise stores

In the prior financial year ending 30 September 2019, TBC achieved revenue of c.R8.2 billion across the retail, wholesale and specialised divisions. In the twelve month period ended 31 March 2020, TBC achieved revenue of c.R8.0 billion.

Cashbuild’s management identified geographic expansion and incremental access to additional segments of the market as key areas for potential growth. An acquisition of TBC allows Cashbuild an opportunity to drive these growth initiatives while still maintaining its commitment to its customers in the South African and neighbouring markets.

Japan: DCM HLDGS Demonstrate Significantly Increased Sales and Profits in Q1.

DCM HLDGS posted an 8.8% YoY increase in sales to JPY124 billion in March-May, partly due to the favourable impact on sales due to Covid-19, as seen in many countries throughout the world. DIY Retailing has been classified as essential retailing in Japan.

The number of DCM-branded items increased by 3,400 SKUs from the same period last year, now making up some 23,300 SKUs, and the improved mark-up rate has pushed the gross profit margin upward 0.9 points YoY to 33.9%.

On the other hand, the SG&A expense has been cut down by 2.6 points YoY to 26.0%, partly due to a reduction in newspaper flyers as the company refrained from aggressive sales promotion during the height of the pandemic. As a result, operating profit was up YoY by 70.4% to JPY11.6 billion.

The sales of gardening, DIY projects and infection-prevention-related products have significantly increased due to the stay-home and remote work trends seen in Japan.

 

Japan: Arckland Sakamoto Acquires LIXIL Viva

Arckland Sakamoto, a regional DIY chain in Japan, recently announced that it will make LIXIL Viva a wholly owned subsidiary of its company.

The integration, based on a spirit of equality, will result in a transition to a holding structure by the end of fiscal 2021. The holding company targets sales of JPY 500 billion and operating income of JPY 40 billion (operating margin: 8%) in 10 years.

In FY2020, LIXIL Viva posted sales of JPY 196.9 billion and Arckland posted sales of JPY 112.7 billion, therefore posting combined sales of JPY 309.6 billion, beating out Nafco, the fifth largest company in the Japanese DIY sector.

Following the integration there will be a total 138 stores – 38 Arckland stores and 100 LIXIL Viva stores. The two companies have little area overlap and are complementary, with the aim to become a leading company in the industry as a national market, rather than a regional chain.

https://diamond-rm.net/homecenter/

Australia: Bunnings achieves almost 20% this year

An increase in sales of 19.2 % has been reported by the Australian chain of DIY stores Bunnings for the period of January to May 2020 compared to the same period last year. In the first half of financial year 2019/2020 (1 July to 31 December 2019) the sales growth amounted to 5.8 %. In the overall financial year until now, i.e. from July 2019 to the end of May 2020, an increase of 11.3 per cent has accumulated.

Bunnings’ parent company Wesfarmers also believes the effects of Covid-19 are responsible for this growth, as customers continue to spend more time working, learning and relaxing at home.

Source: www.diyinternational.com

Germany: Hornbach reports 18% sales rise

The German DIY store chain Hornbach has reported a rapid increase in sales from its DIY stores and almost doubled earnings due to the coronavirus crisis. According to initial preliminary results, sales in the first quarter (1 March to 31 May 2020) have grown by 18.4% to EUR 1.492 bn. The operating earnings adjusted for non-operating impacts on earnings (adjusted EBIT) increased by around 90% to around EUR 160m.

The reason for the significant improvement in earnings is essentially the strong sales growth at home and abroad, reports the company. They state that in the course of the coronavirus crisis, customer demand in the stationary and online business has risen significantly since mid-March – also benefited by the pleasant spring weather in 2020.

The largest sales growths were achieved in May 2020 with plus 36 per cent (March 2020: minus 2 per cent; April 2020: plus 17 per cent), after all of the initially up to 64 Hornbach stores which were effected by official sales restrictions were reopened.

Source: www.diyinternational.com

Chile: Cencosud achieves small Q1 sales rise

The Chilean trade company Cencosud increased its sales in the field of home improvement in the first quarter by 0.6% compared to the same period last year. It has reported the sales volume to be CLP 286.668 bn (EUR 320m). In local currencies, sales would have grown by 13.9%. This discrepancy is primarily due to inflation in Argentina where Cencosud made sales of CLP 118.596 bn (EUR 132m). In Argentinian pesos, that was 30.0% more than in the same quarter of the previous year, however, when converted to Chilean pesos, results in a minus of 2.3%. On the Chilean home market, Cencosud made sales with its home improvement division of CLP 149.532 bn (EUR 167m) and thus an increase of 2.4%. In Colombia, sales grew by 6.2% to CLP 18.540 bn (EUR 21m), however dropped by 1.9% after adjusting for currency effects. Cencosud’s DIY sales channels are Easy and Blaisten. Since the fourth quarter of 2019, the e-commerce share in Cencosud’s DIY business has risen from 3.3% to 4.5%.

 Source: www.diyinternational.com

Japan: LIXIL Viva reports revenue rise

LIXIL Viva has reported higher sales and lower profits for FY2019 (ended 31 March 2020) with sales of JPY 18.5 bn (+4.2% YoY), operating profit of JPY 10.0 bn (-7.5%), recurring profit of JPY 9.3 bn (-7.1%) and net income of JPY 6.5 bn (-64.2%). It was the second year of the company’s three-year mid-term management plan and the company positioned FY2019 as an upfront investment phase in stores, digitalization and logistics. As a result, sales were 2.3 points below the plan due to voluntary sales-promotion cancellations in February and March 2020 due to the impact of the COVID-19 infection, but operating profit was 7.6 points above the plan due to an improvement in the gross margin. Comparable store sales were down 1.4%. The company is continuing with its plans to open seven new stores in FY2020.

Source: Diamond Home Center Magazine

U.S.: Lowe’s Q1 results exceed estimates

Lowe’s Cos. reported its Q1 net earnings rose 27.8% to USD 1.34 bn. Same-store sales soared by 11.2%, where analysts expected an increase of just 3.4%. Overall net sales were up nearly 11% to USD 19.68 bn, while online sales jumped by 80% as customers flocked to e-retail with restrictions in effect on in-person shopping.

 

Source: www.hardlines.ca

Germany: Hornbach anticipates higher Q1 turnover

The German Hornbach group expects significantly higher sales and earnings in the first quarter of its financial year 2020/2021 (1 March to 31 May 2020). The measures taken to contain the coronavirus pandemic meant that up to 40% of Hornbach’s DIY stores in Germany and abroad were initially affected by far-reaching restrictions imposed on sales activities by the authorities. As the spring quarter has progressed, however, it has become apparent that these coronavirus-related losses of sales are being more than offset, and to an increasing extent, by high sales at stores that remained open or have now reopened, at online shops, and at builders’ merchant outlets, an ad-hoc announcement says. Since 6 May 2020, all Hornbach DIY stores have been accessible to customers. From a current perspective, both consolidated sales and adjusted consolidated operating earnings (adjusted EBIT) for the first quarter of the 2020/21 financial year are expected to significantly exceed the previous year’s figures.

Source: www.diyinternational.com

France: DIY market reports 3.4% growth for 2019

The French DIY market grew in the year 2019 by 3.4% to an overall volume of EUR 28 bn. The associations of DIY stores and manufacturers FMB and Inoha, who presented the industry figures at a press conference, which was broadcast online, spoke with relief of a market recovery; in the year 2018 there had only been an increase of 0.4%. The positive development also continued into January and February 2020 according to the associations, but was then stopped by the corona pandemic and the shutdown in France.

However DIY stores hadn’t participated in the overall growth of 3.4% to this amount. Their sales grew by 2.5% to a volume of EUR 20.447 bn (74% of the overall market). Specialist trade rose over-proportionally with an increase of 3.5% (EUR 4.042 bn, 14% market share). The largest increase continues to be recorded by the online retailers; however their growth has significantly weakened: after 18% in the year 2018, growth in 2019 only amounted to 11.8% (EUR 2.415 bn, 9% market share). Food retail grew with its DIY ranges by 2.7% to EUR 748m (3% share). Leroy Merlin built up its market leadership among the DIY stores and increased its market share by one percentage point to 37%. The two other sales channels in Groupe Adeo – Weldom and Bricoman – continue to maintain 4% and 3% respectively. Down one percentage point each is the market share of the two sales channels in the Kingfisher group: Castorama now amounts to 14%, Brico Dépôt 13%.