DGAP-News: TAKKT AG: TAKKT with strong free cash flow in the first half of the year

TAKKT with strong free cash flow in the first half of the year

 

• Noticeable improvement in business performance over the course of second quarter; overall organic sales development at minus 21.2 percent
• Cost and cashflow management implemented quickly and flexibly
• Additional income and cash flow from sale of real estate in the US
• EBITDA at EUR 27.3 million in second quarter
• Free TAKKT cash flow of EUR 90.9 million in first half of the year

Stuttgart, Germany, July 30, 2020. After a difficult start in April, business performance improved noticeably over the course of the second quarter. Customers preparing to reopen businesses and the sale of products for infection control and home office perked up demand. The decline in sales compared to the previous year, which was still over 30 percent in the second half of March and in April, decreased to 20.0 percent for the second quarter in total. From April to June, TAKKT generated sales of EUR 241.5 (301.8) million. After adjusting for positive acquisition and currency effects, organic development came to minus 21.2 percent.


"Given the current environment, we are placing particular emphasis on flexible cost and cash flow management. In the second quarter, we were able to significantly reduce our receivables and adjusted expenses for marketing and personnel to the lower level of sales", explains CFO Claude Tomaszewski. In addition, TAKKT used the opportunity to generate additional income and cash flow through the sale of real estate in the US. The result of this transaction was a one-time contribution to earnings of EUR 4.5 million. In the second quarter, EBITDA amounted to EUR 27.3 (39.6) million, while the EBITDA margin came to 11.3 (13.1) percent.


In the first half of the year, TAKKT generated sales of EUR 526.4 (608.7) million, corresponding to a 13.5 percent decrease over the previous year's period. Organic development was minus 15.6 percent. In the first half of the year, EBITDA reached EUR 51.6 (78.7) million, while the margin came to 9.8 (12.9) percent. At the same time, the Group generated free TAKKT cash flow of EUR 90.9 (52.9) million. Factors contributing to the sharp increase were the cash inflow of EUR 21.9 million realized from the sale of real estate as well as the systematic reduction of receivables. In addition, TAKKT was able to extend existing credit lines with banks ahead of time and increase the committed volumes. The Group is thus very well positioned to take advantage of opportunities to develop new, additional business in the current environment.


The implementation of TAKKT 4.0 made good headway despite the challenge of the coronavirus crisis. In the Omnichannel Commerce segment, KAISER+KRAFT is realigning itself in order to achieve stronger growth and greater efficiency in the medium term. In the first half of the year, TAKKT brought on a new Management Board member to manage and develop the Web-focused Commerce segment. Since the beginning of June, Tobias Flaitz has been responsible for the web-focused business and digital transformation.


A reliable sales and earnings forecast for the year as a whole is still not possible. "Based on the information available today, we believe that the second quarter represented the low point of business development. At the same time, however, there are still considerable uncertainties. These relate to both economic development as well as how coronavirus infections develop" explains CEO Felix Zimmermann. It is not possible to predict whether a rise in infection numbers in certain target markets will again lead to significantly more extensive restrictions on public and economic life.


In the first half-year, TAKKT showed that the company is prepared for and can deal with these risks. The Group will continue to systematically implement cost and cash flow management and adapt it flexibly to current circumstances. For the year as a whole, TAKKT still expects sales and earnings to be significantly below the level of the previous year. The free TAKKT cash flow will be significantly positive.

Conference call: July 30, 2020, at 2:00 p.m. (CEST).

To participate in the earnings call, please register under the following link:
www.takkt.de/event/

Financial calendar

TAKKT will publish the figures for the first nine months on October 29, 2020.

 

IFRS figures for the TAKKT Group as of the end of H1 2020

(in EUR million)

About TAKKT AG

TAKKT is the leading B2B distance seller for business equipment in Europe and North America. The Group focuses on two business models - Omnichannel and Web-focused Commerce. The Omnichannel Commerce segment addresses corporate customers with complex requirements over numerous contact points and with a wide range of services. The Web-focused Commerce segment concentrates its offers primarily via web shops on the less complex requirements of more price-conscious B2B customers. The product range of the subsidiaries comprises more than a million 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 is represented with its brands in more than 25 countries and employs approximately 2,500 people. The company is listed on the SDAX and Deutsche Börse Prime Standard.

 

Contacts:

Michael Loch Tel. +49 (0) 711 3465-8222

Benjamin Bühler Tel. +49 (0) 711 3465-8223

Email: [email protected]