TAKKT Reports Resilience Amidst Challenging Economic Conditions

TAKKT Reports Resilience Amidst Challenging Economic Conditions

(IN BRIEF) TAKKT has strengthened its resilience in the first half of 2024 by increasing its gross profit margin to 40.5% and streamlining cost structures, resulting in a slight increase in free cash flow to €25.6 million. Despite a 17.7% decline in organic sales and challenges in the FoodService division, the company maintained an adjusted EBITDA margin of 7.0%. CEO Maria Zesch, set to be succeeded by Andreas Weishaar, emphasized TAKKT’s transformation into a more integrated and customer-focused entity. The company expects gradual growth improvement in the second half of the year, with adjusted full-year expectations of -12% to -17% in organic sales and an EBITDA margin of 7.3% to 8.3%. An earnings call is scheduled for July 25, 2024.

(PRESS RELEASE) STUTTGART, 25-Jul-2024 — /EuropaWire/ — TAKKT has focused on enhancing its resilience in the first half of 2024 by improving its gross profit margin, streamlining cost structures, and increasing free cash flow. The company reported a 17.7% decline in organic sales, with an adjusted EBITDA margin of 7.0%, due to weak market conditions and challenges in the FoodService division. The company’s sales in the first half totaled €529.4 million, down from €641.2 million in the same period last year.

Despite these challenges, TAKKT managed to improve its gross profit margin to 40.5% from 39.7%, and reduce marketing and other costs. The company also restructured its personnel, aiming to cut its cost base by over €20 million annually. This restructuring incurred one-time expenses of €7.3 million, impacting the EBITDA, which fell to €29.9 million from €57.0 million.

CEO Maria Zesch, who will be succeeded by interim CEO Andreas Weishaar at the end of July, highlighted the strategic and organizational changes made during her tenure, positioning TAKKT as a more integrated and customer-focused company.

Looking ahead, TAKKT expects a gradual improvement in growth rates in the second half of the year, despite persistent challenges in the FoodService division and slow economic recovery in Europe. The company has adjusted its full-year expectations, now anticipating a negative organic sales development of -12% to -17% and an adjusted EBITDA margin of 7.3% to 8.3%. TAKKT remains focused on enhancing order intake, optimizing processes, and maintaining strong cash flow.

An earnings call is scheduled for July 25, 2024, and the company will release its nine-month figures on October 24, 2024.

About TAKKT AG

TAKKT AG is the leading omnichannel distributor for business equipment in Europe and North America. The Group is represented in more than 20 countries with its Industrial & Packaging, Office Furniture & Displays and FoodService divisions. The product range of the subsidiaries comprises more than 600,000 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 company is listed on the SDAX and is represented in the Prime Standard of the German Stock Exchange.

Media Contact:

Benjamin Bühler
phone: +49 711 3465-8223
Email: 4investor@takkt.de

SOURCE: TAKKT AG