Construction market boosts Praktiker sales

Company officials say the increase in net sales per store is fueled by the development of the construction market, increased purchasing power of the population, and a broader offer in consumer loans.

Praktiker's growth pace is higher than that of the construction market, the main engine responsible for Praktiker's increased business, which grew by 29.8 percent in H1 2007 year-on-year.

The company opened six new stores since last summer, increasing its network to 17 units. The first store of its expansion program for 2007 was opened in Galati, in April. The next one will be opened in Targoviste in September. The average investment for each unit is €8-10 million. Praktiker Romania posted net sales worth €153.6 million in 2006, up 56.4 percent from 2005. The group entered the Romanian market in 2002. Praktiker's main competitors in Romania are Bricostore, bauMax, Hornbach, Mr. Bricolaje, and Dedeman.

At the group level, the company registered its highest growth rate in sales in Bulgaria, at 82.9 percent, up to €28.4 million, with Romania ranking second. Praktiker Group posted net sales of €2 billion in H1 2007, a 24.8 percent increase year-on-year.

Revenues in Germany amounted to €1.5 billion, and the remainder was registered on international markets, including Greece, Luxembourg, Poland, Hungary, Turkey, and Bulgaria. "We intend to become market leader in Germany in the near future. Our goal is to consolidate our position on markets on which we already operate, and are considering the possibility of entering new, interesting markets in the meantime," said Wolfgang Werner, CEO of Praktiker Group.

The group estimates sales exceeding €4 billion for 2007, compared to €3.16 billion in 2006, following the acquisition of Max Bahr for €270 million. The group's management announced a new Earnings before interest, taxes, depreciation and amortization (EBITDA) level for 2007, of €125 million, higher than that initially forecast, of €115 million.