Stuttgart, Germany, July 27, 2017. After a good first quarter, business was weaker in the second quarter of 2017. Group sales decreased by 1.5 percent to EUR 276.2 (280.4) million. In organic terms, i.e., adjusted for currency effects, the decrease amounted to 2.3 percent. The growth rate was expected to decline in the second quarter due to a negative effect from the number of working days and a very strong quarter in the previous year. Business development failed to meet these expectations, however, mainly due to declining momentum in the USA. The MEG in particular saw a weaker level of demand and had to report a double-digit drop in sales.
In the first half of the year, sales increased 2.0 percent to EUR 565.0 (554.2) million. Organic sales growth amounted to 0.9 percent. With the exception of MEG, all divisions reported growth in the reporting period. BEG, PSG and DPG realized low single-digit organic growth; OEG and REG achieved mid-single-digit organic growth. MEG's declining performance had an impact on the Group's growth, bringing it down by 2.0 percentage points.
"After enjoying consistent strong growth in the US in the last three years, the development at MEG in the past few months has not been satisfactory. We are seeing weak demand in the American food service and food retail market as well as a markedly decrease in the project business compared to the previous year," says Felix Zimmermann, CEO of TAKKT AG.
The gross profit margin in the first six months was 43.1 (43.4) percent. EBITDA was at EUR 82.0 (95.3) million. The Group EBITDA margin was below the level of the previous year at 14.5 (17.2) percent, in part due to one-time gains from the adjustment recognized as income of the variable purchase price liabilities of EUR 7.6 million in the first half of 2016. Adjusted for these gains, profitability was at 14.5 (15.8) percent. As expected, there were also increased expenses in the reporting period for the implementation of the digital agenda.
At the Digital Champions Award in June, TAKKT AG achieved first place in the category "Digital Processes and Organization." The jury praised the comprehensive approach that TAKKT and its companies are pursuing in their digital transformation.
For the year as a whole, the TAKKT Management Board still anticipates organic growth of two to five percent as well as an EBITDA margin in the middle of the target corridor of 12 to 15 percent. CFO Claude Tomaszewski: "After a subdued performance in the first half of the year, we expect growth rates to increase especially in Europe, but also in the MEG. The economic and industry data points to favorable economic conditions. However, there are still risks for our business with respect to the economic policy of the US and the uncertain outcome of the Brexit negotiations."
Conference call: July 27, 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
TAKKT will publish the figures for the first nine-months on October 26, 2017.
IFRS figures for the TAKKT Group as of the end of H1 2017
(in EUR million)
|Change in %||H1 |
|Change in %|
|TAKKT Group sales||276.2||280.4||-1.5||565.0||554.2||2.0|
|EBITDA margin (%)||13.4||17.2||14.5||17.2|
|Earnings per share (in EUR)||0.28||0.41||-31.7||0.64||0.80||-20.0|
|TAKKT cash flow||26.6||35.0||-24.2||58.5||69.1||-15.3|
|TAKKT cash flow margin (%)||9.6||12.5||10.4||12.5|
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