TAKKT with stronger growth in Europe while development in the US remains below expectations
- Organic growth of 0.5 percent in nine-month period of 2017; reported sales up 0.4 percent
- TAKKT EUROPE with organic growth of 2.8 percent over the nine-month period, TAKKT AMERICA with decrease of 1.7 percent
- Gross profit margin at 42.7 (42.8) percent
- EBITDA margin at 14.2 (16.3) percent
- Acquisition of Mydisplays in Germany
- Adjustment in forecast for 2017
Stuttgart, Germany, October 26, 2017. In the third quarter, both segments witnessed varied and opposing dynamics. “While TAKKT Europe met growth expectations with its organic increase of 4.6 percent, business in the TAKKT AMERICA segment performed more sluggishly than anticipated,” explains Felix Zimmermann, CEO of TAKKT AG. Organic sales performance at TAKKT AMERICA decreased 3.8 percent. “This stems, for one, from all US divisions having reported a significant drop in order intake in Florida and Texas in September as a result of the hurricanes. A second factor was the expiration of a framework agreement in the middle of the year with a large federal customer at OEG, which has, so far, not been renewed.” Combined, these developments negatively affected TAKKT AMERICA’s growth by about 3.5 percentage points in the single quarter. In addition, business development at the MEG remained weak, and the improved performance that was anticipated has not yet materialized to the degree expected.
The organic performance of Group sales in the third quarter was minus 0.1 percent. Significantly, July to September 2017 had one less workday in a year-over-year comparison (approx. minus 1.5 percentage points). Due to negative currency effects, sales in the reporting currency decreased by 2.5 percent to EUR 280.4 (287.6) million. In the first nine months, organic growth in the Group came to 0.5 percent. Measured in the reporting currency of euros, Group sales rose 0.4 percent to EUR 845.4 (841.8) million. The EBITDA margin of 14.2 (16.3) percent was lower year-over-year, also due to one-time gains in the first nine months of 2016. Adjusted for these gains, profitability came in at 14.2 (15.3) percent. As expected, there were increased expenses in the reporting period associated with implementing the digital agenda.
At the beginning of the third quarter, TAKKT acquired Mydisplays GmbH. Headquartered in Burscheid, Germany, Mydisplays specializes in display systems, large-format printing and advertising technology. The company mainly serves the DACH region. Its product marketing predominantly takes place online via the web shop. Mydisplays generated sales of around EUR three million in 2016 and recorded an EBITDA margin at the lower range of TAKKT’s target corridor of 12 to 15 percent. Furthermore, through its investment company, TAKKT has invested in the venture capital fund Cavalry Ventures and in October in the online booking platform BookATiger, which offers cleaning services. TAKKT invested EUR 0.5 million into each.
For the fourth quarter, TAKKT expects that the performance will not be enough for the figures to reach the previously forecast target corridor of two to five percent organic growth for 2017. The TAKKT Management Board now anticipates organic sales growth of
0 to 1 percent for the 2017 financial year. “At the same time, we continue to expect the EBITDA-margin to come in at the middle of the target corridor”, added TAKKT-CFO Claude Tomaszewski. Currently, the EBITDA margin is anticipated to be between 13.2 and 13.5 percent.
Conference call: October 26, 2017, at 3:00 p.m. (CEST).
The login details to participate in the earnings call are available at the following link: 4www.takkt.com/event
IFRS figures for the TAKKT Group as of the end of the third quarter 2017
(in EUR million)
|Change in %||9M
|Change in %|
|TAKKT Group sales||287.6||280.4||-2.5||841.8||845.4||0.4|
|EBITDA margin (%)||14.6||13.4||16.3||14.2|
|Earnings per share (in EUR)||0.34||0.30||-13.3||1.14||0.94||-17.5|
|TAKKT cash flow||31.0||27.1||-12.6||100.1||85.6||-14.5|
|TAKKT cash flow margin (%)||10.8||9.7||11.9||10.1|
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.
Dr. Christian Warns Tel. +49 711 3465-8222
Giuseppe Palmieri Tel. +49 711 3465-8250