TAKKT continues good performance of previous year
- Organic sales growth of 5.7 percent, reported Group sales up by 8.5 percent
- Gross profit margin increase to 43.6 (43.0) percent
- EBITDA margin at 17.2 (17.3) percent, unchanged at 16.0 (16.0) percent when adjusted for one-time effects
- Earnings per share at EUR 0.39 (0.38)
Stuttgart, Germany, April 28, 2016. TAKKT continued the positive development of 2015 in the first three months of this year. Reported consolidated sales in the first quarter of 2016 were EUR 273.7 (252.3) million, which corresponds to an 8.5 percent increase over the previous year’s period. In organic terms (i.e., adjusted for currency effects, the sale of the Plant Equipment Group (PEG) division and the sales contribution of the Post-Up Stand and BiGDUG acquisitions in 2015), Group sales in the first quarter increased by 5.7 percent compared to the previous yearʼs period. A difference in the speed of growth between the European and US activities could still be seen during the reporting period.
Felix Zimmermann, CEO of TAKKT AG, sees the development of the Group as positive: “With the successful start to the year, we are continuing the strong performance of 2015. Our activities in North America in particular still show robust growth. With respect to the rest of the year, we expect the positive development in the USA to continue and slight organic growth in Europe.”
In the first quarter of 2016, the gross profit margin of 43.6 percent was above the level of the previous year’s period of 43.0 percent. Group earnings before interest, taxes, depreciation and amortization (EBITDA) improved to EUR 47.2 (43.8) million. The EBITDA margin of 17.2 (17.3) percent remained virtually unchanged. The one-time effects in the first quarter of this year as well as the reference period need to be taken into consideration here. In the first quarter of 2015, the disposal of PEG resulted in a one-time gain of EUR 3.3 million. The outstanding variable purchase price liabilities for the acquisition of Post-Up and BiGDUG were reduced by EUR 3.3 million in the reporting period. This resulted in other operating income in the same amount. With respect to both companies, TAKKT’s Management Board no longer expects to achieve the ambitious growth and key earnings figures used as the basis for the initial consolidation of the variable liabilities. The adjusted EBITDA margin in both periods came to 16.0 percent.
The TAKKT cash flow (defined as profit for the period plus depreciation and amortization, impairment of non-current assets and deferred taxes recognized as income) of EUR 34.0 (34.4) million remained virtually unchanged from the previous year.
TAKKT EUROPE: Recovery in Switzerland
The TAKKT EUROPE segment achieved organic growth of 1.6 percent in the first quarter. Reported sales increased to EUR 142.7 (134.5) million, which corresponds to a 6.1 percent increase over the previous year’s period. BiGDUG’s sales contribution was a major reason for this increase. The British company was acquired in mid-2015. The Business Equipment Group (BEG) achieved organic growth in the low single-digit percentage range. This was mainly attributable to the high growth rate in the Nordic countries as well as in Eastern and Southern Europe. Even in Switzerland, growth in the local currency was very good after the sales slump resulting from uncapping of the Swiss franc in the corresponding quarter of the previous year. In contrast to this, business in Great Britain without BiGDUG developed negatively. The Packaging Solutions Group (PSG) showed a stable organic business performance. EBITDA for TAKKT EUROPE amounted to EUR 29.8 (27.3) million, while the margin came to 20.9 (20.3) percent.
TAKKT AMERICA: Continued strong growth
The TAKKT AMERICA segment also made a significant contribution to the positive development of the TAKKT Group in the first quarter of 2016. Organic growth came to 10.8 percent and is adjusted for currency effects as well as portfolio effects resulting from the disposal of PEG and the acquisition of Post-Up Stand. Sales reported in euros even rose by 11.2 percent. Among other effects, the American companies oriented towards the service sector benefited from strong consumer confidence in the USA. The Specialties Group (SPG) achieved an increase in organic sales in the low double-digit percentage range and the Office Equipment Group (OEG) high single-digit growth. TAKKT AMERICA increased EBITDA to EUR 20.8 (18.5) million, while the EBITDA margin came to 15.8 (15.7) percent.
Outlook: TAKKT confirms forecast for 2016
The relevant conditions for the continued economic development of the Group remain largely unchanged and intact. The International Monetary Fund has recently adjusted its economic growth forecasts for both regions slightly downwards. Claude Tomaszewski, CFO of TAKKT AG, on the current outlook: “Despite the latest somewhat weaker assessment of conditions, we continue to stick to our forecast for 2016 based on the figures presented today. We expect organic sales growth of between three and five percent as well as an EBITDA margin within the upper third of the target corridor of 12 to 15 percent.”
We would like to invite you to address your questions to the Management Board. We will be hosting a conference call for this purpose on April 28, 2016 at 3:00 pm (CEST). To take part, please dial the following number: +49 69 2222 3250 (access code: 779134#).
IFRS figures for TAKKT Group for the first three months of 2016:
(in EUR million)
|Q1 2016||Q1 2015||Change in %|
|TAKKT Group sales||273.7||252.3||8.5|
|EBITDA margin (%)||17.2||17.3|
|EBIT margin (%)||14.5||14.8|
|Profit before tax||37.7||35.0||7.5|
|Pre-tax profit margin (%)||13.8||13.9|
|TAKKT cash flow||34.0||34.4||-1.2|
|TAKKT cash flow margin (%)||12.4||13.6|
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 300,000 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.
The TAKKT Group has over 2,000 employees and just under three million customers worldwide. The company is listed on the SDAX and Deutsche Börse Prime Standard.
Dr. Christian Warns Tel. +49 711 3465-8222
Giuseppe Palmieri Tel. +49 711 3465-8250