Strong sales and earnings growth despite challenging environment
 

• Q3 sales up 15.6 percent, organic growth at 7.0 percent
• EBITDA 25 percent above previous year
• TAKKT free cash flow exceeds EUR 25 million
• Share buyback program successfully launched

 
Stuttgart, Germany, October 25, 2022. TAKKT performed very well in the third quarter in a challenging market environment, continuing the success of the first half of the year. Organic sales growth reached 7.0 percent and was slightly higher than in the previous quarter. “Demand thus developed better than we had expected despite the ebbing economic momentum in key target markets,” says CEO Maria Zesch. TAKKT also benefited from improved product availability due to the buildup of inventories in the first half of the year and from the high order backlog. Performance in the Office Furniture & Displays and FoodService divisions was particularly strong, with both posting growth in the double digits. Reported sales increased by 15.6 percent to EUR 350.5 (303.1) million and benefited from positive currency effects, mainly relating to the US dollar.

This year, inflation management has been one of the most important tasks for the Group, including in the third quarter. Thanks to the consistent passing on of higher supplier prices, the gross profit margin in the third quarter was only slightly below the previous year’s level at 39.2 (39.6) percent. Due to the strong growth and positive economies of scale, TAKKT was able to significantly improve EBITDA and increase it by 25.0 percent to EUR 37.9 (30.3) million. The EBITDA margin increased to 10.8 (10.0) percent as a result of the lower cost ratios for marketing and personnel. Earnings were adversely impacted by one-time effects of nearly EUR 2 million. Adjusted for the one-time costs, the EBITDA margin was above the 11 percent mark. “Thanks to the strong earnings and reduction of inventories, we generated free TAKKT cash flow of over EUR 25 million in the third quarter,” says CFO Claude Tomaszewski.

In the first nine months, sales reached EUR 1,007.6 (860,5) million, representing an increase of 17.1 percent compared to the previous year. Adjusted for the positive currency effects, sales grew by 10.6 percent. Despite the inflationary environment, the gross profit margin remained relatively stable at 39.7 (40.3) percent in the first nine months. EBITDA improved by 28.1 percent to EUR 105.2 (82.1) million. One-time costs had a negative impact on earnings of around EUR 4 million, resulting primarily from the organizational realignment. In the same period of the previous year, one-time costs amounted to over EUR 3 million. The EBITDA margin improved to 10.4 (9.5) percent. TAKKT cash flow developed similarly well as EBITDA, rising to EUR 91.4 (70.8) million. Given the good operational development, high equity ratio and the company’s low valuation in the capital market, TAKKT resolved on a share buyback program with a volume of up to EUR 25 million at the beginning of October. The program was launched successfully and will run until the middle of next year.

In the past nine months, TAKKT has made substantial progress on the implementation of the new strategy with the three pillars Growth, OneTAKKT and Caring. “Our focus was on the integration of purchasing, marketing and sales in the largest division Industrial & Packaging, the decision to harmonize the brand landscape and developing the Group functions,” summarizes CEO Maria Zesch.

According to the latest forecast of the International Monetary Fund, the economy in the relevant target markets in Europe and the US is heading towards a further slowdown and possible recession. Negative factors continue to be high inflation rates, the consequences of the war in Ukraine and a more restrictive monetary policy. TAKKT anticipates a challenging environment in the final quarter. In addition to the continued implementation of the transformation, the focus at the end of the year will be on continuing inflation management and managing inventories. Based on the strong figures of the first nine months, TAKKT maintains its existing forecast for the year as a whole and continues to expect organic sales growth in the high single digits. The expected range for EBITDA of EUR 120 to 130 million remains unchanged.

Earnings call: October 25, 2022, at 2:00 p.m. (CEST).

Please register in advance to participate in the Earnings Call. You can find the registration link at: www.takkt.de/event

Financial calendar

TAKKT will publish the preliminary figures for the 2022 fiscal year on February 23, 2022.

IFRS figures for the TAKKT Group for the first nine months of 2022
(in EUR million)

About TAKKT AG

TAKKT AG is the leading omnichannel distributor for business equipment in Europe and North America. The Group is represented in more than 25 countries with its Industrial & Packaging, Office Furniture & Displays and FoodService divisions. The product range of the subsidiaries comprises more than 600,000 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.

Contacts:

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