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Financial year successfully concluded – Proposed dividend increase

  • Reported Group sales up by 5.8 percent to EUR 1,125.0 (1,063.8) million; organic growth of 5.2 percent
  • Gross profit margin remains constant at 42.6 (42.6) percent
  • EBITDA margin of 15.2 (14.8) percent slightly above target corridor, at 14.5 (14.5) percent when adjusted for one-time effects
  • Proposed dividend increase to EUR 0.55 (0.50) per share
  • Organic sales growth of two to five percent expected for 2017
  • Further investments for implementing the digital agenda

Stuttgart, Germany, March 22, 2017. “We’ve had a successful financial year,” remarked Felix Zimmermann, CEO of TAKKT AG, “with organic sales growth of 5.2 percent, which was slightly above our forecast for 2016.” Group sales in the year under review increased by 5.8 percent to EUR 1,125.0 (1,063.8) million. Positive effects resulted from the fact that the company acquisitions Post-Up Stand and BiGDUG contributed to Group sales for the full year for the first time. Portfolio effects had a positive impact on sales of 1.2 percentage points. In contrast, currency effects had a negative impact of 0.6 percentage points.

EBITDA margin slightly above target corridor
In the year under review, EBITDA increased to EUR 171.3 (157.3) million. This is mainly due to the positive organic performance of sales in the segments. In addition, one-time gains should be taken into account in the year under review as well as for the previous year. In 2016, the EBITDA margin of 15.2 (14.8) percent was slightly above the target corridor of 12 to 15 percent. Adjusted for positive one-time gains, the EBITDA margin remained constant at 14.5 (14.5) percent.

TAKKT EUROPE: Solid performance in both divisions
Sales in the TAKKT EUROPE segment increased by 4.6 percent to EUR 563.3 (538.3) million. Sales rose organically by 3.5 percent. Both divisions were able to achieve organic sales growth in the low single-digit percentage range. The EBITDA margin of the segment was once again well above the Group average with 19.0 (18.3) percent; however, it was also positively influenced by one-time gains in 2016. Adjusted for these, the EBITDA margin was 18.2 (18.3) percent.

TAKKT AMERICA: Sales growth higher than average
At EUR 562.0 (525.8) million, sales for TAKKT AMERICA were 6.9 percent higher than the previous year. Organic sales growth came to 7.0 percent. The Specialties Group achieved organic sales growth in the mid-single-digit range, and the Office Equipment Group posted growth in the low double-digit percentage range. The EBITDA margin of the segment increased to 13.7 (13.1) percent, which was also due to one-time gains. Adjusted for these, the EBITDA margin was 13.0 (12.5) percent.

TAKKT shapes its digital transformation
TAKKT wants to actively make the most of the opportunities that digitalization offers. To do so, the company developed a digital agenda in 2016 and formulated a Vision 2020. The aim is to double e-commerce business, transform the organization in a step change, invest in employees and new technologies, and increase organic sales growth in the medium term. Selected measures from the digital agenda, which are regularly updated, can be found at 4www.takkt.de/en/digitalization/measures/.

Industry role model for sustainability
TAKKT had announced that it wanted to be the industry role model for sustainability by the end of 2016. This goal was achieved. The Group is leading the way, especially in the areas of purchasing, marketing and logistics. Sustainability will continue to remain a core issue for TAKKT in the future. Ambitious plans have been laid down for the years to come. In the latest sustainability update, you can read about the progress made in defined focus areas and the goals set for 2020.

Dividend of EUR 0.55 proposed
The Management Board and Supervisory Board of TAKKT AG will propose to the Shareholders’ Meeting in May that the dividend be increased to EUR 0.55 (0.50) per share. This corresponds to a payout ratio of 39.5 percent of profits for the period.

Outlook for 2017: Continued organic growth expected
TAKKT anticipates business to develop positively in 2017. Compared to the previous year, GDP growth is expected to slow slightly for the eurozone while increasing in the USA. Based on this assumption, TAKKT predicts organic sales growth of between two and five percent. Due to expenses stemming from implementing the digital agenda, the EBITDA margin for 2017 is expected to be in the middle of the target corridor of 12 to 15 percent. “In the medium term, we expect increased organic sales growth and improved relative key figures, such as the EBITDA margin. This will come as a result of our investments in connection with the digital transformation,” adds CFO Claude Tomaszewski.

Analyst Conference on March 22, 2017 at 3:00 p.m. (CET)
The login details to participate in the call can be found at the following link:
4www.takkt.com/event

IFRS figures for the TAKKT Group for the 2016 financial year
(in EUR million)

 20162015Change in %
TAKKT Group sales1,125.01,063.8+5.8
Organic growth  +5.2
TAKKT EUROPE563.3538.3+4.6
TAKKT AMERICA562.0525.8+6.9
EBITDA171.3157.3+8.9
EBITDA margin (%)15.214.8 
EBIT142.0129.4+9.8
EBIT margin (%)12.612.2 
Profit before tax132.5119.9+10.5
Pre-tax margin (%)11.811.3 
TAKKT cash flow125.6114.2+10.0
TAKKT cash flow margin11.210.7 
Investment17.414.2+21.9
TAKKT cash flow per share in EUR1.911.74+9.8
Earnings per share in EUR1.391.24+12.1
Non-current assets729.9735.6-0.8
in % of total assets74.976.3 
Total equity537.8473.4+13.6
in % of total equity and liabilities55.249.1 
Net financial liabilities177.5244.0-27.2
Employees (full-time equivalent) as of December 312,3112,304+0.3

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 500,000 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.

Contacts:
Dr. Christian Warns Tel. +49 711 3465-8222
Giuseppe Palmieri Tel. +49 711 3465-8250

Email: investor@takkt.de