TAKKT growth above average
Forecast for 2006 raised again
TAKKT AG continues to be on the growth track. In the first three quarters of 2006 the leading B2B mail order group for business equipment in Europe and North America increased its turnover by 24.9 percent to EUR 702.8 million compared to the previous year's period (Q 1-3 2005: 562.9). Excluding the effects from the NBF acquisition and currency changes this is an increase of 9.2 percent. Earnings figures also developed positively: EBITDA in the first nine months of the year was up from EUR 71.2 to 84.0 million. Cash flow set another record at EUR 56.0 million.
“The very positive business development in the first nine months shows that TAKKT has done its homework successfully once again”, comments Georg Gayer, CEO of TAKKT AG. “The good figures have prompted management to increase the turnover forecast for 2006 yet again. We are now expecting exchange rate adjusted growth of around 23 percent.”
EBITDA growth
EBITDA, earnings before interest, tax, depreciation and amortisation, was up by 18.0 percent from EUR 71.2 to 84.0 million. By taking over National Business Furniture Group (NBF), which is currently operating on margins below those of the Group average, the EBITDA margin fell from 12.6 to 12.0 percent as expected. TAKKT acquired the US market leader for office furniture mail order at the beginning of 2006. Excluding the NBF Group the EBITDA margin of TAKKT Group is in line with that of the previous year.
Funding the NBF acquisition price increased borrowings and subsequently interest expense. Despite this, TAKKT recorded a clear increase in profit before tax from EUR 56.4 to 64.4 million. With a cash flow of EUR 56.0 (48.2) million TAKKT set a new record in the first nine months of 2006, which corresponds to a margin of 8.0 (8.6) percent of Group turnover.
“Management is very satisfied with the development of profitability”, states Dr Florian Funck, CFO of TAKKT AG. “Despite pressure on the EBITDA margin as a result of the acquisition and the planned start-up losses for newly founded companies, we are expecting the margin for 2006 to be at the top end of the long-term target corridor of ten to twelve percent.”
Very positive earnings figures at KAISER + KRAFT EUROPA
Supported by the positive economic development, which has been prevailing since the beginning of the year, KAISER + KRAFT EUROPA has generated double-digit turnover growth of 11.2 percent in the first three quarters. The division has increased its turnover to EUR 322.5 (289.9) million. Almost all companies contributed to this. Especially companies in Asia, Eastern Europe, Scandinavia, Spain, Switzerland, the Netherlands, Belgium and Germany saw very positive growth rates. Business development at new and young companies in China, France, Romania and Turkey is exceeding expectations by far.
In line with good business development the Group’s EBITDA has also increased by 14.2 percent to EUR 57.9 (50.7) million. The margin has increased from 17.5 to 18.0 percent of turnover.
Topdeq profitability improves again
Topdeq Group also increased its turnover against the previous period by 4.1 percent to EUR 60.7 (58.3) million. In exchange rate adjusted terms turnover is up by 3.9 percent.
Repositioning Topdeq as a premium brand since the end of 2005 is also reflected in the financial figures. Only Topdeq Germany has not yet been able to fully compensate declining number of orders by increasing average order values. In all other foreign companies turnover has developed positively. This applies especially to the young company in Belgium.
As expected, Topdeq Group continued to increase its earnings figures at a disproportionately high rate in the first nine months by adjusting its product range and improving capacity utilisation. EBITDA was up by 33.3 percent to EUR 1.2 (0.9) million, which corresponds to a margin of 2.0 (1.5) percent.
Turnover increases at K + K America
K + K America increased its turnover against the previous year's period by 46.8 percent to USD 397.5 (270.7) million. Excluding NBF Group turnover in the division was up by 8.3 percent on a dollar basis. This development is especially positive considering that the US economy is slowing as expected. Translated into the reporting currency Euro turnover was up by 48.9 percent to EUR 319.6 (214.7) million.
Those companies closer to the service sector such as Hubert and NBF recorded a consistently positive development in the first nine months of the year. C&H in Mexico is also reporting very positive growth rates. The integration of NBF Group is going to plan.
The profitability development of the division was influenced by the first-time consolidation of NBF Group. EBITDA was up by 25.0 percent and reached EUR 32.0 (25.6) million. As expected the EBITDA margin fell from 11.9 to 10.0 percent.
IFRS figures of TAKKT AG for the first nine months 2006
in EUR million
Conference call
We would like to invite you to put questions personally to our Management Board. A telephone conference has been arranged for 2 November 2006 at 3:00 pm (CET) in which we will be delighted to answer your questions. Please dial in on +49 30 20223191.
Short profile of TAKKT AG
TAKKT AG is the leading B2B mail order company for office, business and warehouse equipment in Europe and North America. The Group is represented in more than 25 countries with its brands. More than 100,000 products make up the product range of its subsidiaries and cover the areas business and warehouse equipment, traditional and design-oriented office furniture and accessories, occupational safety products and sales promotion articles for retailers as well as the food service and hotel market.
TAKKT AG employs about 2,000 members of staff, has more than two million customers worldwide and distributes more than 65 million catalogues and mailings every year.
The company is listed on the SDAX and was admitted to Deutsche Boerse’s Prime Standard on 1 January 2003.
Stuttgart, 2 November 2006
Contacts:
Georg Gayer, CEO
Phone +49 711 34658-201
Dr Florian Funck, CFO
Phone +49 711 34658-207