TAKKT AG: Strong growth at the end of the first quarter should continue in the months ahead

DGAP-News: TAKKT AG / Key word(s): Quarter Results
29.04.2021 / 07:00
The issuer is solely responsible for the content of this announcement.

Strong growth at the end of the first quarter should continue in the months ahead

  • Organic sales development in the first quarter as expected at minus 3.3 percent
  • Double-digit organic sales growth in March, order intake nearly reached the level from 2019
  • Gross profit margin at 41.0 (41.8) percent
  • EBITDA rises to EUR 26.5 (24.3) million
  • Free TAKKT cash flow at EUR 21.1 (7.3) million
  • Significant positive organic growth expected starting in the second quarter

Stuttgart, Germany, April 29, 2021. After the expected subdued start to the 2021 fiscal year, TAKKT generated low double-digit organic sales growth in March. Order intake performed significantly better than sales in the first quarter, increasing slightly compared to the previous year. In March, it nearly reached the level of 2019. "In some business areas, supply chains are currently at capacity, which is partially having an impact on product availability. The difference between order intake and realized sales is thus temporarily much higher than usual", explains CFO Claude Tomaszewski. Overall, the Group continued the performance of the previous quarter in the first three months of the year. Organic sales development was minus 3.3 percent and thus slightly better than in the last quarter 2020 (minus 3.6 percent). Reported sales of EUR 266.4 (285.0) million were 6.5 percent below the level of the previous year. Currency effects had a negative impact of 3.2 percentage points.

"The more stringent and extended coronavirus protection measures in some markets have so far not led to a noticeable change in customer demand patterns", says CEO Felix Zimmermann. At the same time, the momentum in the individual business units continued to be greatly affected by the pandemic and was similar to that of the fourth quarter. Business performance in most of the Group was stable and even increased significantly at ratioform and Newport. However, demand for the event and foodservice-related activities of D2G and Hubert had not yet improved in the first quarter.

The gross profit margin came to 41.0 (41.8) percent. The decrease was mainly attributable to a lower freight margin. EBITDA increased to EUR 26.5 (24.3) million. Earnings in the previous year were negatively affected by costs of EUR 7.6 million for the implementation of TAKKT 4.0. The EBITDA margin reached 9.9 (8.5) percent. The TAKKT cash flow remained virtually unchanged at EUR 22.4 (22.1) million. The free TAKKT cash flow of EUR 21.1 (7.3) million in the first quarter was significantly higher than in 2020. TAKKT expects to be able to generate good free cash flow for the year as a whole, but at a significantly lower level than in 2020.

Current economic forecasts for the eurozone assume that the extended lockdown measures will lead to a certain delay in the economic recovery that is expected in the course of the year. In the US, on the other hand, conditions should soon improve perceptibly due to the country's progress with vaccinations. As a whole, TAKKT anticipates significant positive growth rates starting in the second quarter. The Group continues to aim for organic growth of between seven and twelve percent for the entire year and EBITDA in the range of EUR 100 to 120 million. In mid-April, TAKKT announced that Maria Zesch will succeed Felix Zimmermann as CEO of the company as of August 1, 2021. Felix Zimmermann will step down from the Management Board at his own request following the Shareholders' Meeting on May 11.

Earnings call: April 29, 2021, at 2:00 p.m. (CEST).
The login details to participate in the earnings call can be found at: www.takkt.de/event

Financial calendar
TAKKT will publish figures for the first half of the year on July 29, 2021.

IFRS figures for the TAKKT Group as of the end of the first quarter 2021
(in EUR million)

  Q1/2020 Q1/2021 change in %
TAKKT Group sales 285.0 266.4 -6.5
Organic growth     -3.3
Omnichannel Commerce 175.1 169.8 -3.1
Organic growth     -1.0
Web-focused Commerce 62.9 57.4 -8.8
Organic growth     -5.6
Foodservice Equipment & Supplies 48.1 40.3 -16.2
Organic growth     -8.7
EBITDA 24.3 26.5 +9.1
EBITDA margin (%) 8.5 9.9  
EBIT 14.3 17.2 +20.3
EBIT margin (%) 5.0 6.5  
Earnings per share in EUR 0.14 0.18 +28.0
TAKKT cash flow 22.1 22.4 +1.0
TAKKT cash flow margin (%) 7.8 8.4  
Free TAKKT cash flow 7.3 21.1 +189.0

The TAKKT Group is specialized on B2B distance selling for business equipment in Europe and North America. The group is represented in more than 25 countries with its units KAISER+KRAFT, Ratioform, National Business Furniture, Displays2Go, Newport, Hubert und Central. The portfolio of its subsidiaries offers more than a million of products ranging from durables that companies use for their business activities, office furniture, transport packaging, display articles, food service supplies to commercial kitchens, hotels, and retailers. Largest shareholder is Haniel, holding shares of 50.25%.

Michael Loch phone +49 711 3465-8222
Benjamin Bühler phone +49 711 3465-8223
Email: investor@takkt.de

29.04.2021 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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Michael Loch
Michael Loch
Head of Investor Relations
Tel: +49 711 3465-8222