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TAKKT AG: TAKKT responded quickly to the coronavirus pandemic and is prepared to make the most of opportunities, also during the crisis

DGAP-News: TAKKT AG / Key word(s): Quarter Results
30.04.2020 / 07:00
The issuer is solely responsible for the content of this announcement.

TAKKT responded quickly to the coronavirus pandemic and is prepared to make the most of opportunities, also during the crisis
 

  • Development in the first quarter of 2020 was overshadowed by the coronavirus pandemic; organic sales performance at minus 10.1 percent
  • EBITDA of EUR 24.3 (39.1) million negatively affected by decline in sales and one-time expenses for TAKKT 4.0
  • Besides crisis management, the focus is on identifying opportunities
  • Implementation of TAKKT 4.0 is making progress
  • Management Board contract of Heiko Hegwein extended by five years
  • Further business development dependent on the progression of the pandemic
  • TAKKT has enough financial flexibility and can also generate positive free cash flows in the event of a significant long-term decrease in sales


Stuttgart, Germany, April 30, 2020. Business development in the first quarter was overshadowed by the pandemic spread of the coronavirus. During the course of March, nearly all countries in TAKKT's target markets widely restricted public life in order to combat the spread of the virus. As a result, there has been a significant decline in order intake since mid-March, which was around minus 35 percent for the Group as a whole in the second half of March. TAKKT immediately reacted to the coronavirus pandemic and promptly implemented measures geared toward protecting its employees from infection, maintaining operations and securing financial stability. These include a cost reduction program and a very restrictive approach to hiring new employees. "Following the initial phase of crisis management, our focus is now also set on identifying opportunities for the development of new, additional business in the current environment. This includes both organic and inorganic initiatives," explains CEO Felix Zimmermann.

Due to the sharp decline from mid-March onward, TAKKT's organic sales in the first quarter declined overall by 10.1 percent. Due to the positive growth in January and February, the development of the Web-focused Commerce segment was, at minus 3.8 percent, better than the activities in Omnichannel Commerce at minus 11.6 percent. As a result of positive currency and acquisition effects, TAKKT's reported sales of EUR 285.0 (306.9) million declined to a somewhat lesser degree, by minus 7.2 percent.

The gross profit margin improved slightly to 41.8 (41.7) percent. Earnings were negatively affected by the marked decrease in sales. As announced in the 2019 annual report, there were also one-time expenses for the implementation of the TAKKT 4.0 organizational realignment. These primarily pertained to measures at KAISER+KRAFT and totaled EUR 7.6 million. The reported EBITDA in the first quarter was at EUR 24.3 (39.1) million; the reported EBITDA margin decreased to 8.5 (12.7) percent.

Progress was made with the implementation of the TAKKT 4.0 organizational realignment in the first quarter. KAISER+KRAFT started with a realignment aiming to achieve stronger growth, increased efficiency and better performance in the medium term. Heiko Hegwein is responsible for the realignment of KAISER+KRAFT and the development of the Omnichannel Commerce segment at the Management Board level. His contract was extended by the Supervisory Board for five years to ensure continuity in the work of the Management Board. TAKKT also made progress with digitalization and was able to increase its e-commerce share in the first quarter to 59.1 percent.

The coronavirus pandemic will continue to have a negative effect on business activity over the course of the year. Further development will depend on when and to what extent current restrictions are relaxed, and on how quickly economic activities recover. Sales and EBITDA for the current fiscal year are expected to be significantly below the level of 2019.

TAKKT's business model is comparably robust in times of crisis. Based on disciplined cost management and the reduction of net working capital, the Group can also generate positive free cash flows in the event of a significant long-term decrease in sales. "We have a solid balance sheet and secured long-term financing, and therefore enough financial flexibility," says CFO Claude Tomaszewski.

Earnings call: April 30, 2020, at 2:00 p.m. (CEST)
To participate in the earnings call, please register under the following link: www.takkt.de/event

IFRS figures for the TAKKT Group for the first quarter of 2020

(in EUR million)

  Q1
2019
Q1
2020
Change in %
TAKKT Group sales 306.9 285.0 -7.2
Organic growth     -10.1
Omnichannel commerce 248.6 223.2 -10.2
Organic growth     -11.6
Web-focused commerce 59.6 62.9 +5.5
Organic growth     -3.8
EBITDA 39.1 24.3 -37.8
EBITDA margin (%) 12.7 8.5  
EBIT 29.4 14.3 -51.3
Earnings per share (in EUR) 0.30 0.14 -52.3
TAKKT cash flow 30.9 22.1 -28.5
TAKKT cash flow margin (%) 10.1 7.8  
 

About TAKKT AG
TAKKT is the leading B2B distance seller 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 a 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 employs approximately 2,500 people. The company is listed on the SDAX and Deutsche Börse Prime Standard.

Contacts:

Christian Warns  Tel. +49 (0) 711 3465-8222
Benjamin Bühler  Tel. +49 (0) 711 3465-8223
 

Email: investor@takkt.de



30.04.2020 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