TAKKT AG / Key word(s): Final Results
P R E S S R E L E A S E
TAKKT defies the weak economic situation in Europe in 2012 with strategic acquisitions and strong US business
Stuttgart, Germany, 21 March 2013. In spite of a challenging economic environment in Europe, the TAKKT Group was able to continue along its long-term growth path in the financial year 2012. The Group benefited from the promising acquisitions of the companies GPA and Ratioform. The decline in organic turnover in Europe was partly offset by strong US business. 'We particularly benefit from our strategy of diversification in times of economic difficulty. Thanks to our broad positioning, we are less dependent on cyclical fluctuations in individual regions and sectors,' says CEO Dr Felix A. Zimmermann, commenting on the figures.
Acquisition and currency effects create growth in turnover and earnings
The gross profit margin and EBITDA margin are important key performance indicators for TAKKT. The Group has set itself the target of maintaining a gross profit margin of over 40 percent in the long term and keeping its EBITDA margin within the long-term target corridor of 12 to 15 percent. TAKKT was able to meet these targets in the past financial year. The gross profit margin remained constant at 43.3 (43.3) percent, while the EBITDA margin was unchanged at 14.2 (14.2) percent. Adjusted for acquisitions, the gross profit margin came to 42.4 percent, while the EBITDA margin was 13.8 percent. This slight decline is due mainly to the shift in the turnover and earnings contributions among the divisions. TAKKT AMERICA contributed a larger share of the consolidated turnover in 2012 than in the previous year, although the margins it generated were below the Group average.
EBITDA in the year under review amounted to EUR 133.8 (121.0) million, which corresponds to a rise of 10.6 percent. Despite the higher finance expenses and increased depreciation and amortisation - all of which are consequences of the acquisitions - consolidated net profit also rose to EUR 67.0 (66.0) million. Earnings per share reached EUR 1.02 (1.01).
Cash flow stays strong - ordinary dividend remains constant
Divisions: TAKKT AMERICA serves as primary driver in the financial year 2012
In addition to a declining acquisition-adjusted number of orders, the TAKKT EUROPE division also reported a drop in the average order value. However, the division's turnover nonetheless increased by 1.5 percent to EUR 515.1 (507.3) million as a result of the acquisition of the Ratioform Group. The corresponding share of consolidated turnover fell to 54.8 (59.5) percent because TAKKT EUROPE saw weaker growth than TAKKT AMERICA. Adjusted for acquisition and currency effects, turnover decreased by 7.6 percent.
Combined with the EBITDA generated by Ratioform in the second half of 2012, TAKKT EUROPE recorded an operating profit of EUR 102.0 (101.0) million. This corresponds to an EBITDA margin of 19.8 (19.9) percent. Excluding Ratioform, the margin fell to 19.3 percent. The main reason for this development was a reduced capacity utilisation compared to the previous year. As expected, the margin remained well above the target corridor. The turnover of the Business Equipment Group (BEG) decreased by a mid single-digit percentage figure, while the EBITDA margin remained well above the target corridor. The European Office Equipment Group (OEG) had to accept a decline in turnover in the low double-digit percentage range. The EBITDA margin also saw a year-on-year decline and is well below the target corridor. The Packaging Solutions Group (PSG), newly established following the acquisition of Ratioform, contributed EUR 42.9 million to the division's turnover in the second half of the year. The PSG is now the new leader within the TAKKT Group in terms of profitability.
TAKKT AMERICA's turnover grew by 23.2 percent to EUR 425.2 (345.2) million, thereby contributing 45.2 (40.5) percent of consolidated turnover. Adjusted for acquisitions and currency effects, the rise in turnover amounted to 4.2 percent. While the absolute number of orders declined in organic terms, a higher average order value in US dollars did provide a basis for solid growth. At EUR 41.3 (28.6) million, EBITDA was 44.4 percent higher than in 2011.
At 9.7 (8.3) percent, the EBITDA margin almost reached double digits, which is a medium-term target for TAKKT AMERICA. If the extraordinary effects arising from the acquisition of GPA are excluded from the calculation, the margin comes to 10.4 percent, which is above the aforementioned threshold. Without the acquisition, a margin of 9.6 percent would have arisen. The increased profitability in North America is primarily due to the improved utilisation of the direct marketing infrastructure and higher advertising efficiency.
Forecast for 2013: continuation of corporate strategy and expected economic recovery
As in the previous year, the TAKKT Management Board has outlined three possible scenarios for business development in the current year on the basis of expected Group performance:
Depending on the economic environment as detailed above, TAKKT expects an EBITDA margin of between 14 and 15 percent in the second scenario. Should the more cautious performance scenario prove to be the case, a decline in the EBITDA margin into the lower half of the target corridor of 12 to 15 percent cannot be excluded. However, should the more optimistic scenario apply, the EBITDA margin may reach the upper end of the target corridor or even exceed it slightly. 'In the light of current economic indicators, we currently consider the second scenario to be the most probable,' explains Zimmermann. 'There are growing signs of an economic improvement in Europe in the second half of 2013. Despite slowing momentum, the forecast for North America remains somewhat better than for Europe.'
Short profile of TAKKT AG
TAKKT Group employs more than 2,500 staff and has over three million customers worldwide. TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse's Prime Standard on 01 January 2003.
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