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TAKKT AG: TAKKT with double-digit sales growth in the final quarter of 2018 - Management Board proposes payment of a special dividend

DGAP-News: TAKKT AG / Key word(s): Preliminary Results/Dividend

21.02.2019 / 07:00
The issuer is solely responsible for the content of this announcement.


TAKKT with double-digit sales growth in the final quarter of 2018 - Management Board proposes payment of a special dividend
 

  • Reported sales in the fourth quarter up 12.0 percent, organic growth at 5.0 percent
  • TAKKT achieves significant sales growth of 5.8 percent for 2018 overall, organic growth of 3.4 percent is at the upper end of the forecast for the year
  • EBITDA margin at 12.7 (13.5) percent
  • Earnings per share at EUR 1.34 (1.47)
  • Management Board proposes to the Supervisory Board to pay a special dividend of EUR 0.30 per share in addition to the ordinary dividend of EUR 0.55


Stuttgart, Germany, February 21, 2019. Sales in the TAKKT Group increased in the year under review to EUR 1,181 (1,116) million. Reported sales growth thus came to 5.8 percent. The growth benefited from the positive contribution of acquisitions. Opposing effects resulted from negative currency effects and the closure of the business of Hubert Europe at the end of the third quarter. Adjusted for the mentioned effects, organic sales grew by 3.4 percent in comparison to the previous year. Organic growth was thus at the upper end of the range of the two to four percent forecast at the beginning of the year.

"After a difficult start in 2018, we achieved good organic growth over the remainder of the year. Strategically, the focus was on the digital transformation. Its implementation continues to enjoy the highest priority at the company. Last year, TAKKT generated over 50 percent of its order intake via digital channels for the first time," said CEO Felix Zimmermann.

At 41.5 (42.5) percent, the gross profit margin in 2018 was below the previous year's level. Around half of the decline can be attributed to the first-time consolidation of acquisitions that achieved a lower gross profit margin than the Group average. In addition, higher freight costs and lower freight margins as well as a new framework contract with a major customer of the Hubert group had negative impacts on the gross profit margin.

EBITDA remained constant in comparison to the previous year at EUR 150.1 (150.3) million. In the fourth quarter, earnings were affected by two one-time effects. First, TAKKT realized a one-time gain of EUR 4.9 million from the sale of real estate in the US. Second, the good business development at Mydisplays led to the recognition of a variable purchase price liability of EUR 2.0 million as an expense. The focus in 2018 continued to be on the implementation of the digital transformation, and related investments were at a similar level to the previous year. The EBITDA margin of 12.7 (13.5) percent was slightly below the initially projected target corridor of 13 to 14 percent.

Earnings per share amounted to EUR 1.34 (1.47). Because of the cash flow strength of the business model and the comparatively high equity ratio, the Management Board proposes to the Supervisory Board to pay a special dividend of EUR 0.30 per share in addition to the ordinary dividend of EUR 0.55. This would correspond to a payout ratio of 63.3 (37.5) percent. Even after the dividend payout in this amount, TAKKT would still have sufficient funds for acquisitions.

In 2019, TAKKT expects a slight economic slowdown in Europe and North America, which are important regions for TAKKT, given continuing political and economic uncertainties. "Even so, we are confident about the year," said CFO Claude Tomaszewski. Given the current environment, TAKKT expects organic growth. In addition to organic growth, the Group will continue push for growth through acquisitions.

TAKKT will give further details on the 2018 consolidated financial statements and guidance for future business development with the publication of the 2018 annual report on March 28, 2019.

Conference call: February 21, 2019, at 2:00 PM (CET)
The login details to participate in the earnings call can be found under the following link: https://www.takkt.de/event/

 

Preliminary IFRS figures for the TAKKT Group for the 2018 financial year
(in EUR million)

  Q4
2017
Q4
2018
Change in % FY
2017
FY
2018
Change in %
TAKKT Group sales 270.7 303.1 +12.0 1,116.1 1,181.1 +5.8
Organic growth     +5.0     +3.4
TAKKT EUROPE 151.8 174.3 +14.8 575.0 651.8 +13.4
Organic growth     +4.1     +4.1
TAKKT AMERICA 118.9 128.9 +8.3 541.4 529.5 -2.2
Organic growth     +6.1     +2.7
EBITDA 30.6 39.8 +30.1 150.3 150.1 -0.2
EBITDA margin (%) 11.3 13.1   13.5 12.7  
EBIT 23.9 33.1 +38.7 123.2 122.5 -0.6
Earnings per share (in EUR) 0.52 0.40 -24.5 1.47 1.34 -8.6
TAKKT cash flow 23.6 35.5 +50.4 109.1 120.2 +10.2
TAKKT cash flow margin (%) 8.7 11.7   9.8 10.2  
 

About TAKKT AG
TAKKT is the leading B2B direct marketing specialist for business equipment in Europe and North America. The Group is represented with its brands in more than 25 countries. The product range of the subsidiaries comprises more than one million products for the areas of plant and warehouse equipment, office furniture, transport packaging, display articles and equipment for the food service industry, hotel market and retailers. The TAKKT Group has over 2,500 employees. The company is listed on the SDAX and Deutsche Börse Prime Standard.

Contacts:
Dr. Christian Warns Tel. +49 (0) 711 3465-8222
Giuseppe Palmieri Tel. +49 (0) 711 3465-8250

Email: investor@takkt.de



21.02.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Your Contact

Dr. Christian Warns
Dr. Christian Warns
Leiter Investor Relations
christian.warns(at)takkt.de
Tel: +49 711 3465-8222
Fax: +49 711 3465-8104
Giuseppe Palmieri
Giuseppe Palmieri
Presseabteilung
giuseppe.palmieri(at)takkt.de
+49 711 3465-8250
+49 711 3465-898250