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TAKKT AG: As expected, TAKKT is feeling a weaker economy in the second quarter

DGAP-News: TAKKT AG / Key word(s): Half Year Results

25.07.2019 / 07:00
The issuer is solely responsible for the content of this announcement.


As expected, TAKKT is feeling a weaker economy in the second quarter

  • Group sales up by 3.6 percent in the second quarter due to acquisitions and currency effects
  • Organic sales development at minus 0.7 percent
  • EBITDA margin - adjusted for IFRS 16 impact - nearly stable at 13.1 percent thanks to disciplined cost management
  • First half of the year with organic growth of 2.1 percent
  • Acquisition of XXLhoreca strengthens Newport group
  • E-commerce share climbs to 54.0 percent in the first half-year

Stuttgart, Germany, July 25, 2019. In the second quarter, TAKKT increased sales from the previous year by 3.6 percent to EUR 301.8 (291.2) million. The Group benefited from the contributions of acquisitions and positive currency effects. As expected, organic growth subsided in the second quarter after the good start to the year. "The demand of individual customer groups in Europe weakened noticeably over the course of this year," explained TAKKT CEO Felix Zimmermann. While in Europe the further economic slowdown and fewer working days harmed business development, in the US the expected termination of the business relationship with a major Hubert customer reduced the Group's growth rate by around one-and-a-half percentage points. Consequently, organic growth was slightly negative at minus 0.7 percent.

The gross profit margin of 41.4 percent in the second quarter was stable at the previous year's level. The EBITDA margin improved from 12.2 to 13.1 percent. In view of the declining sales development, TAKKT practiced disciplined cost management in the second quarter. As a result, the Group was able to keep the EBITDA margin - adjusted for the positive impact of about one percentage point from the initial adoption of the IFRS 16 accounting standard - nearly stable despite negative organic growth.

In the first half of the year, TAKKT generated sales of EUR 608.7 (567.2) million. The reported growth in euros reached 7.3 percent, while organic growth amounted to 2.1 percent. The EBITDA margin rose to 12.9 (12.2) percent, benefiting by about one percentage point from the adoption of IFRS 16. EBITDA increased accordingly to EUR 78.7 (69.0) million.

The digital transformation continues to make good progress. The share of order intake via e-commerce channels increased in the first half of the year to 54.0 percent, compared to 52.1 percent at the end of 2018. At the beginning of May, TAKKT acquired XXLhoreca, an e-commerce direct marketing specialist for food service equipment based in the Netherlands. The company primarily supplies business customers, such as hotels, restaurants, cafeterias and catering companies. XXLhoreca will strengthen the Newport group in the TAKKT EUROPE segment.

Provided that the economic environment will not deteriorate further, the Group assumes that it will achieve slight organic growth for the full year. "TAKKT will maintain disciplined cost management and expects an EBITDA margin for 2019 between 12 and 14 percent," commented CFO Claude Tomaszewski. If the reluctance of individual sectors intensifies or spreads to other markets and regions, a slightly negative organic sales development is also possible. In this case, profitability could be toward the low end of the aforementioned range of 12 to 14 percent.

Conference call: July 25, 2019, at 2:00 p.m. (CEST).
The login details to participate in the earnings call are available at the following link:
www.takkt.de/event/

Financial calendar
TAKKT will publish the figures for the first nine months on October 24, 2019.

IFRS figures for the TAKKT Group as of the end of H1 2019
(in EUR million)

  Q2
2018
Q2
2019
Change in % H1
2018
H1
2019
Change in %
TAKKT Group sales 291.2 301.8 3.6 567.2 608.7 7.3
Organic growth     -0.7     2.1
TAKKT EUROPE 159.5 164.5 3.1 319.5 340.5 6.6
Organic growth     -1.0     1.8
TAKKT AMERICA 131.7 137.4 4.2 247.9 268.2 8.2
Organic growth     -0.5     2.5
EBITDA 35.6 39.6 11.2 69.0 78.7 14.1
EBITDA margin (%) 12.2 13.1   12.2 12.9  
EBIT 28.2 29.4 4.3 54.9 58.8 7.1
Earnings per share (in EUR) 0.30 0.31 2.6 0.58 0.60 4.5
TAKKT cash flow 28.8 31.4 9.0 55.4 62.3 12.5
TAKKT cash flow margin (%) 9.9 10.4   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



25.07.2019 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