Systematic focus on ongoing expansion projects
TAKKT AG sales increased 15.7 percent in the first six months
The Stuttgart-based TAKKT AG, the leading business-to-business mail order house for office, business and warehousing equipment in Europe and North America, succeeded in maintaining its strong growth rate during the second quarter of 2000. Between April and June of this year, sales revenue rose by 16.2 percent to Euro 175.2 million compared with the corresponding period last year. During the first six months, sales increased 15.7 percent to Euro 364.8 million. Georg Gayer, chairman of TAKKT's management board, is highly satisfied with this proof of continued growth: "These figures are a clear indication that our strategy for expansion is the correct one."
Rate of expansion speeded up
The EBITDA figure, which represents the operational result of TAKKT AG before taxation, finance and investment activities, fell 3.0 percent during the second quarter of 2000 to Euro 19.0 million compared with the equivalent period last year. Comparing the first half year, the EBITDA is 2.7 percent higher than 1999, at Euro 31.2 million. In the opinion of financial director Dr. Felix A. Zimmermann, the start-up and promotional costs for the newly established Topdeq France and KWESTO Czech Republic, together with US subsidiary C&H's new operations in Mexico, are the principal reason for this slow growth of the EBITDA in the first half year. As Zimmermann explains: "'At the same time, we are feeling the effects of all our companies' capital expenditure -planned and implemented over the past few months - in e-commerce, which is set to be the market of the future. We had promised to speed up implementation of our expansion strategy. And in our business this has a short-term impact on results - especially since the catalogue expenditure is a direct expense."
Effects of spin-off
On account of depreciation (Euro 1.8 million) resulting from the spin-off from the GEHE Group, the EBIT for the second quarter of 2000 declined to Euro 14.4 million (down 17.7 percent). The quarterly pretax results were also affected by interest payments (Euro 1.5 million) arising from the higher funding volume as a result of the spin-off. They fell by 26.9 percent to Euro 12.1 million. Zimmermann sums up the situation in the following terms: "Because of the spin-off, neither the EBIT nor the net income before tax can be compared with the previous year. From next quarter onward, we will be in a much better position to supply meaningful figures for the purpose of comparison, since the spin-off took place at the beginning of the third quarter last year."
Powerful growth in all divisions
All three TAKKT divisions have played a key role in the achievement of these excellent group earnings for the first six months. Specifically, sales revenues of KAISER + KRAFT EUROPA improved 10.5 percent to Euro 84.2 million as compared with Euro 76.2 million in the second quarter of 1999. Total sales between January and June rose from Euro 163.9 million to Euro 178.9 million, an increase of 9.2 percent over the preceding year. With sales increasing 22.2 percent to Euro 18.4 million, Topdeq was the TAKKT division with the highest growth rate. Over the first six months, the number one among Europe's design office outfitters recorded an increase of 22.5 percent, with sales revenues rising from Euro 34 million in 1999 to Euro 41.6 million this year. In dollar terms, K + K America succeeded in improving its sales from US$ 61.3 million to US$ 67.8 million, an increase of 10.6 percent. Because of the high dollar exchange rate, the increase in Euros was 22.1 percent (Euro 72.6 million in 2000 as compared with Euro 59.4 million in 1999). Altogether, the US division's sales of US$ 138.6 million were up 14.3 percent on the first six months of the previous year.
The chairman of the management board, Georg Gayer, envisages dynamic growth for the group over the coming six-month period. TAKKT is anticipating sales of at least Euro 700 million in the financial year 2000. An EBITDA margin of 10-11 percent is planned. Gayer is full of confidence: "We shall be adhering to our growth strategy - we have various concrete projects 'in the pipeline' for next year and preparations for these are already well under way."
TAKKT AG key figures at end of second quarter 2000
(in millions of Euro)
| 2nd quarter 2000 | 2nd quarter 1999 |
Change in % | Quarters 1-2/ 2000 |
Quarters 1-2/ 1999 |
Change in % | |
| Sales TAKKT-Group | 175,2 | 150,8 | 16,2 | 364,8 | 315,3 | 15,7 |
| KAISER+KRAFT EUROPA | 84,2 | 76,2 | 10,5 | 178,9 | 163,9 | 9,2 |
| Topdeq | 18,4 | 15,1 | 22,2 |
41,6 |
34,0 | 22,5 |
| K+K America | 72,6 | 59,4 | 22,1 | 144,3 | 117,4 | 22,8 |
| K+K America ($) | 67,8 | 61,3 | 10,6 | 138,6 | 121,2 | 14,3 |
| EBITDA | 19,0 | 19,6 | -3,0 | 31,2 | 30,4 | 2,7 |
| EBITDA margin | 10,8 | 13,0 | 8,6 | 9,6 | ||
| EBIT | 14,4 | 17,5 | -17,7 | 22,2 | 25,7 | -13,6 |
| EBIT margin | 8,2 | 11,6 | 6,1 | 8,1 | ||
| Pre-tax results | 12,1 | 16,5 | -26,9 | 17,7 | 23,7 | -25,2 |
| Pre-tax results margin | 6,9 | 11,0 | 4,9 | 7,5 |
Stuttgart, July 20, 2000
Contact:
Georg Gayer
Tel. 07 11.50 01-239
Dr. Felix A. Zimmermann
Tel. 07 11.50 01-861