TAKKT AG: TAKKT strengthens resilience in the first quarter

EQS-News: TAKKT AG / Key word(s): Quarterly / Interim Statement
TAKKT AG: TAKKT strengthens resilience in the first quarter

25.04.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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TAKKT STRENGTHENS RESILIENCE IN THE FIRST QUARTER

* Free cash flow increases to EUR 21.3 (14.5) million

* Gross profit margin improved to 41.2 (40.0) percent

* Organic sales growth of minus 16.5 percent

  * Adjusted EBITDA margin at 7.4 percent, implementation of structural cost
    reductions

Stuttgart, Germany, April 25, 2024. TAKKT continues to work intensively on
strengthening its resilience in a persistently challenging environment. In
the first quarter, the Group achieved good results in optimizing cash
generation, strengthening the gross profit margin, and making structural
cost adjustments. Demand in the first quarter of the new year was
characterized by continued weak conditions in the markets relevant to TAKKT.
'In discussions with our B2B customers, we continue to see a great deal of
restraint and uncertainty. Many companies are reducing their costs,
investments, and staff. We expected a difficult start to the new year. This
has been confirmed,' says CEO Maria Zesch. Sales reached EUR 269.0 (321.8)
million. Organic sales growth amounted to minus 16.5 percent. It was
impacted by three percentage points due to the discontinuation of the Certeo
business in the previous year and negative working day effects. While the
I&P and OF&D divisions performed at a comparable level to the final quarter
of 2023, the FoodService business saw a much sharper decline. In addition to
a persistently weak market environment, temporary effects out of the
harmonization of ERP systems and significantly lower project business
contributed as well.

All three divisions improved their gross profit margin in the first quarter.
For the Group, this signified an increase to 41.2 (40.0) percent, which was
due to lower costs for inward freight and improved purchasing conditions.
'With our business model we are in a resilient position, especially in times
of crisis. In addition to the high gross profit margin, strict cost
management also contributes to this. In the first quarter, we intensified
the adjustment of our personnel structure by consistently adapting the
number of employees to the lower demand. The resulting savings will
significantly reduce our personnel costs in the coming months,' says CFO
Lars Bolscho. In the first quarter, the resulting one-time expenses had a
negative impact on reported earnings. EBITDA amounted to EUR 16.8 (30.2)
million and was impacted by one-time expenses amounting to EUR 3.0 (0.6)
million. The adjusted EBITDA margin was at 7.4 (9.6) percent.

Another important pillar for TAKKT's resilience is strong cash flow. Despite
the lower EBITDA, the Group generated a significantly higher free cash flow
of EUR 21.3 (14.5) million in the first quarter. 'Following the already
significant reduction in net working capital last year, we were able to free
up an additional EUR 14.3 million due to very active inventory management,
amongst other. We are also working on further improvements in the cash
conversion cycle,' Lars Bolscho continues.

After a difficult start to the new financial year, TAKKT expects organic
growth to increase over the course of the year. 'Demand remains subdued at
present. While the indicators relevant to us continue to point to negative
growth rates, most forecasts for the eurozone expect GDP growth to improve
in the second half of the year. In addition, the basis for comparison will
then be significantly lower. We therefore continue to expect a gradual
recovery in demand from quarter to quarter,' says CEO Zesch. 'And we are
continuing to work on our strategic topics. At the beginning of the year, we
took a major step towards integrating Central and Hubert by harmonizing our
IT systems in the FoodService division. In May, we will have completely
migrated ratioform's customers to kaiserkraft in the I&P division and
discontinue ratioform's independent brand presence. Both of these steps will
contribute to our success in the long term but will also bring temporary
challenges and have negative effects on our sales development.' TAKKT will
evaluate and continuously implement further measures to manage its cost
structures. In addition to further one-time expenses, this will lead to an
increasing reduction in the cost base over the course of the year. 'We
confirm our forecast of an adjusted EBITDA margin of 8.0 to 9.5 percent for
the full year and expect profitability to improve gradually over the course
of the year,' says CFO Bolscho.

Earnings Call: April 25, 2024 at 2pm (CEST)

To participate in the Earnings Call, please register in advance at the
following link: Registration Earnings Call

Financial calendar
TAKKT will publish the figures for the first half year on July 25, 2024.

IFRS figures for the TAKKT Group as of the end of the first quarter 2024
(in EUR million)

                                 Q1/2023  Q1/2024   in %
    TAKKT Group sales              321.8    269.0  -16.4
    organic growth                                 -16.5
    Industrial & Packaging         180.1    154.7  -14.1
    organic growth                                 -15.0
    Office Furniture & Displays     73.2     60.3  -17.7
    organic growth                                 -16.7
    FoodService                     68.5     54.0  -21.1
    organic growth                                 -20.2
    Gross profit margin (%)         40.0     41.2
    EBITDA                          30.2     16.8  -44.5
    EBITDA margin (%)                9.4      6.2
    Adjsuted EBITDA margin (%)       9.6      7.4
    EBIT                            20.9      8.5  -59.3
    EBIT margin (%)                  6.5      3.2
    Earnings per share in EUR       0.22     0.08  -64.3
    Free cash flow                  14.5     21.3   46.9

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.

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


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   Language:       English
   Company:        TAKKT AG
                   Presselstr. 12
                   70191 Stuttgart
                   Germany
   Phone:          +49 (0)711 3465 80
   Fax:            +49 (0)711 3465 8104
   E-mail:         investor@takkt.de
   Internet:       www.takkt.de
   ISIN:           DE0007446007
   WKN:            744600
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard),
                   Stuttgart; Regulated Unofficial Market in Berlin,
                   Dusseldorf, Hamburg, Hanover, Munich, Tradegate
                   Exchange
   EQS News ID:    1888827

End of News EQS News Service
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1888827 25.04.2024 CET/CEST