Press Releases

TAKKT resolves repositioning of the Hubert Group

01/09/2019

Stuttgart, Germany, January 9, 2019. The Hubert Group, headquartered in Harrison, Ohio, USA, has recorded a decline in sales for several quarters, with a steady improvement over the course of 2018. Following the closing of Hubert's European activities in the second half of 2018, the TAKKT Management Board has now decided on a repositioning of Hubert's US business and a focus on more attractive customer groups. The frame contract with a major customer will expire at the end of February 2019.

Hubert is part of the TAKKT AMERICA segment and distributes visual merchandising products as well as supplies and equipment for the food service and food retail industries. In particular in the area of ​​food service, Hubert was able to achieve good and profitable growth with some major customers over the past two decades, but this has also led to increasing dependency and a more volatile business. For several quarters, business with these customers has been under pressure and became less and less attractive and profitable. For this reason, the TAKKT Management Board has decided on a repositioning of Hubert. The aim of the repositioning is to reduce the dependency on the low-margin volume business and to focus on Hubert's core competencies in visual merchandising.

As a result, the relationship with one of the major customers ends on February 28, 2019. The termination of this frame contract will cause a short-term reduction in sales and earnings at Hubert until business with new customers replaces this volume. Hubert has generated sales of just under 30 million US dollars with this major customer in 2018. Even without this business volume, the Hubert group will continue to be profitable and achieve an almost double-digit EBITDA margin. "The repositioning aims to reduce the dependency on a few major customers and the related volatility at Hubert and to put a greater focus on more attractive customer groups," explains TAKKT CEO Felix Zimmermann. "Initial measures taken in 2018 show encouraging results."

TAKKT will publish its preliminary figures and a dividend proposal for the past financial year on February 21, 2019.