Turnover and earnings increase in all three divisions
Market leader TAKKT remains firmly on track to growth
The business of TAKKT AG developed positively in the first nine months of 2005. The leading B2B mail order company for business equipment in Europe and in North America increased its turnover from EUR 536.8 to EUR 562.9 million compared to the previous year. This marks an increase of 4.9 percent. After currency adjustment the increase was as much as 5.8 percent.
“Our growth is based on the fact that all three divisions operated successfully“, comments Georg Gayer, chairman of TAKKT’s Management Board. Management is expecting an increase in turnover of at least four percent after currency adjustment for the full year 2005.
Earnings continue to increase
The Group has once again increased its earnings figures. EBITA (earnings before interest, tax and amortisation) increased by 10.1 percent to EUR 64.1 (58.2) million. The EBITA margin increased to 11.4 (10.8) percent. “Despite the investment in starting new companies we expect the EBITA margin for 2005 to be at the top end of our target range of between 9 to 11 percent”, explains Dr Florian Funck, Member of the Management Board for Finance and Controlling.
Since the beginning of 2005 TAKKT has been accounting under the International Financial Reporting Standard (IFRS) 3. This means that the Group’s goodwill is no longer subject to scheduled amortisation but must be tested for impairment on an annual basis. Earnings before interest and tax, EBIT, have increased sharply to EUR 64.1 (46.4) million as a consequence. Profit before tax increased over-proportionately to EUR 56.4 (38.0) million. Cash flow is calculated on the basis of net income before minority interest plus depreciation and deferred tax expense and amounted to EUR 48.2 (43.6) million.
KAISER + KRAFT EUROPA increases turnover
Business conditions in Europe during the first nine months of the year were sluggish. Nonetheless the TAKKT division KAISER + KRAFT EUROPA increased its turnover once again rising by 5.2 percent to EUR 289.9 (275.7) million. After currency adjustment growth was recorded at 4.9 percent. The decisive factor for this success was that average order values and the number of orders increased. As a consequence the division’s profitability rose further. EBITA was up from EUR 44.2 to 47.1 million, which corresponds to an EBITA margin of 16.2 (16.0) percent.
KAISER + KRAFT EUROPA has continued its expansion drive: KWESTO Romania mailed its first catalogue in September, while operative business in Turkey started in May. In October the division was granted a licence to found a company in China, which will be mailing its first catalogues in Q1 2006.
Topdeq growth above average
Topdeq continued to develop extremely well. In the first nine months of 2005 the division increased by 12.8 percent and generated a turnover of EUR 58.3 (51.7) million. This means that growth rates are still in double-digits. After currency adjustment turnover increased by 13.5 percent.
Topdeq’s earnings have improved due to increased capacity utilisation, improved processes and enhanced catalogues and mailings. EBITA was recorded at EUR -0.4 (-2.2) million. TAKKT is expecting a positive result for the full year 2005.
Sound earnings at K + K America
The K + K America division has developed well despite a slow-down of economic growth in the USA. Turnover increased by 5.5 percent to USD 270.7 (256.5) million. All companies in this division contributed to this increase. Translated into the reporting currency of euros turnover amounted to EUR 214.7 (209.4) million, an increase of 2.5 percent. EBITA increased from EUR 21.8 to 23.6 million. The EBITA margin improved to 11.0 (10.4) percent accordingly.
The new Hubert company in Canada started operative business in July as planned. Since then the company has taken over all sales activities which were previously performed by Hubert USA.
Short profile of TAKKT AG
Represented in 25 countries, TAKKT AG is the number one B2B mail order group for office, business and warehouse equipment in Europe and North America. The product range of the TAKKT subsidiaries comprises some 100,000 items from the areas business and warehouse equipment, classical and design-oriented office furniture and accessories, occupational safety products, equipment for retailers, the food service industry and the hotel market.
TAKKT AG employs approximately 1,900 members of staff, has more than 2.6 million customers worldwide and distributes more than 50 million catalogues and mailings each year.
The company is listed on the SDAX and was admitted to Deutsche Boerse’s Prime Standard on 1 January 2003.
IFRS figures of TAKKT AG for the first nine months 2005
Stuttgart, 3 November 2005
Contacts:
Georg Gayer, CEO
Phone +49 711 34658-201
Dr Florian Funck, CFO
Phone +49 711 34658-207