TAKKT remains on growth path in the second quarter and confirms the forecast
 

• Good organic growth (6.8 percent) in the second quarter
• Gross profit margin over 40 percent despite inflationary pressure
• EBITDA growth of 30 percent in the first half-year
• TAKKT confirms growth forecast and specifies EBITDA expectation to
• EUR 120 to 130 (previously 110 to 130) million 

Stuttgart, Germany, July 28, 2022. After the strong start to the 2022 fiscal year, TAKKT realized an organic sales growth of 6.8 percent in the second quarter. Despite the difficult environment and increased economic risks, TAKKT remained on course for growth. As expected, the pace of growth was below the figure for the first three months due to the higher previous year’s basis. The demand behavior of customers weakened slightly during the first half of the year. The average order value was significantly above the previous year’s level and also benefited from price increases. At the same time, the number of orders decreased, particularly in the second quarter.

For the first half of the year, TAKKT can report strong figures. Organic sales growth came to 12.6 percent. The figures reported in euros were positively impacted by currency effects, primarily relating to the rise in value of the US dollar. Sales increased by a total of 17.9 percent to EUR 657.0 (557.3) million.

“Significant price increases for the purchase and transport of goods and limited product availability were our greatest operational challenges. We were able to maintain the gross profit margin almost on par with the previous year’s level by passing on the higher price level quickly and in full,” says CFO Claude Tomaszewski. In the first half of the year, the gross profit margin was 39.9 (40.7) percent, thus remaining close to the target of 40 percent despite inflationary pressures. In order to fulfill as many customer orders as possible, the Group has further expanded its inventory levels. Product availability did not change significantly in the reporting period, and the order backlog remains at a high level.

As a result of the high growth and more efficient cost structures, TAKKT was able to increase EBITDA more strongly than sales in the first half of the year. In total, it increased by 29.8 percent to EUR 67.3 (51.8) million. The EBITDA margin therefore improved to 10.2 (9.3) percent despite the lower gross profit margin. Contributing to this were the lower cost ratios for personnel and marketing. One-time costs amounted to just over EUR 2 million in the reporting period, which were partly attributable to the new set-up of the Industrial & Packaging division and the discontinuation of business in Russia. One-time costs of slightly over EUR 3 million were incurred in the previous year. The exceptional circumstances with high inflation and limited product availability also had a noticeable impact on the development of cash flows in the first half of the year. While the TAKKT cash flow grew at a similar pace to EBITDA, the free TAKKT cash flow was slightly negative mainly due to the buildup of inventories, putting it well below the level of the previous year. For the second half of the year, TAKKT expects significant cash inflows from the reduction of net working capital.

In the implementation of the new strategy comprising the three pillars of Growth, OneTAKKT and Caring, the focus in the first half of the year was on integrating the Industrial & Packaging division. “In our largest division, the existing parallel structures in marketing and sales for the various brands were replaced by a single, integrated organization. This will allow us to generate stronger growth through the expansion of cross-selling in the future,” explains CEO Maria Zesch. As part of the new structure of the Industrial & Packaging division, TAKKT has decided to simplify and harmonize the brand landscape, which is expected to be implemented by early 2024. As a result of this decision, the Group recognized impairments of intangible assets of EUR 11.2 million. These relate primarily to brand rights, which were purchased and recognized as part of earlier acquisitions.

While TAKKT aims to continue its growth course in the second half of the year, it expects a more difficult overall environment than in the first half of the year. The possible limitation of gas supplies in Europe and more restrictive monetary policy have resulted in increased economic risks. At the same time, customer ordering behavior saw a decline in the second quarter. In view of this, TAKKT anticipates mid-single-digit organic growth for the rest of the year. The Group confirms its existing forecast for the year as a whole and wants to achieve high single-digit organic growth. TAKKT now expects EBITDA to be in the range of EUR 120 and 130 million (previously EUR 110 to 130 million).

Earnings call: July 28, 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 figures for the first nine months on October 25, 2022.
 

IFRS figures for the TAKKT Group as of the end of H1 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