Strategic goals for 2025
The new orientation is also associated with new, ambitious strategic goals that TAKKT is aiming to achieve by 2025. As part of a comprehensive approach, these goals include financial aspects such as a significant increase in sales, earnings and free cash flow as well as moves to address the concerns of key stakeholders by improving customer satisfaction and employee motivation and conserving natural resources. The strategy is based on three pillars Growth, OneTAKKT and Caring. The table below gives an overview of TAKKT’s new strategic goals.
|Strategic goals until 2025|
TAKKT is aiming to use its new strategic orientation and a clear customer focus to increase its business volume to EUR 2 billion by 2025. Slightly more than half of the additional sales is expected to come from organic growth and the rest from value-creating acquisitions. The organic growth rate is to be raised to an average of ten percent per year. In addition to increasing e-commerce, expanding cross-selling and an improved and intelligent pricing strategy, the Group believes that sustainable products and business models offer considerable growth potential.
One key component of the new strategic orientation is a more compact and integrated corporate structure. This includes both the central coordination and management of key Group functions, like logistics and IT, and much greater cooperation in the marketing activities of the various brands within a division. TAKKT expects this more compact line-up to bolster growth, but also to improve profitability through economies of scale and the more efficient use of resources. In addition, an important part of the new strategy is the repositioning of activities that do not currently perform according to expectations. Starting from an EBITDA margin in the high single digits last year, the Group aims to increase its profitability by two to three percentage points and lift its EBITDA to EUR 240 million by 2025.
The new strategy is not limited to improving the company’s financial success, but pursues a comprehensive approach. TAKKT is convinced that addressing the concerns of all important stakeholder groups is the prerequisite for sustainable financial success. This is why TAKKT has set itself ambitious goals for 2025 relating to customer satisfaction, employee engagement, and the environment and climate. Further details on these sustainability goals and measures are presented in the new sustainability report.