TAKKT sees good organic growth in the first quarter - full-year forecast confirmed
- Reported Group sales up by 11.2 percent
- Organic sales growth of 5.0 percent, positive effects from portfolio changes totaling 2.6 percentage points and from currency fluctuations of 3.6 percentage points
- Gross profit margin at 41.7 (42.5) percent
- EBITDA margin increases to 12.7 (12.1) percent; first-time application of IFRS 16 has a positive effect of around one percentage point
- E-commerce share climbs to 54.8 percent
Stuttgart, Germany, April 25, 2019. In the first three months of 2019, TAKKT was able to increase sales by 11.2 percent compared to the first quarter of 2018 to EUR 306.9 (276.1) million. "We had a good start to 2019," says CEO Felix Zimmermann. The company benefited from continued good organic growth of 5.0 percent. There were positive effects of 2.6 percentage points from portfolio changes as well as 3.6 percentage points from currency fluctuations. As was already the case in the previous quarter, organic growth was somewhat stronger in North America than in Europe. All seven divisions were able to grow organically.
The gross profit margin was 41.7 (42.5) percent. Around half of the difference to the previous year is attributable to structural effects, also because the two acquisitions made in 2018 have a lower gross profit margin than the Group on average. The EBITDA margin improved to 12.7 (12.1) percent compared to the previous year. As expected, the first-time application of the IFRS 16 accounting standard had a positive impact of around one percentage point on the margin. Adjusted for this effect, profitability was slightly below the previous year due to the lower gross profit margin and structural adjustments at Hubert and ratioform. In total, EBITDA increased significantly from EUR 33.4 million to EUR 39.1 million. In addition to the above-mentioned effect from the application of IFRS 16, positive currency effects also contributed to this increase. With an increase to EUR 30.9 (26.6) million, TAKKT cash flow developed positively as well. This was also due to the first-time application of IFRS 16.
The company remains on track with its digital transformation. The share of order intake via e-commerce was 54.8 percent in the first quarter. In addition, the TAKKT investment company was recently able to carry out its ninth investment, acquiring a minority interest in Profishop. Established in 2012, the start-up is a high-growth B2B e-commerce platform for consumables and equipment for business, storage, manufacturing and building services.
"In view of the persistent decline of economic indicators and as a result of the termination of a major customer contract with Hubert starting in March, which was announced in the 2018 annual report, we anticipate lower organic growth rates in the upcoming quarters," explains TAKKT CFO Claude Tomaszewski. Under current conditions, TAKKT continues to expect slight organic sales growth for the full year and an EBITDA margin in the target corridor of 12 to 16 percent. Even in the event of a significant slowdown in business, the Group attaches great importance to achieving the profitability targets and has prepared measures for flexible cost adjustments. If the persistently weak economic indicators become noticeable in the order intake, TAKKT will implement these measures promptly.
Conference call: April 25, 2019, at 2:00 p.m. (CEST).
The login details to participate in the earnings call are available at the following link:
IFRS figures for the TAKKT Group for the first quarter of 2019
(in EUR million)
|Change in %
|TAKKT Group sales
|EBITDA margin (%)
|Earnings per share (in EUR)
|TAKKT cash flow
|TAKKT cash flow margin (%)
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.
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