TAKKT Forecasts Gradual Growth Rate Improvement in Second Half of 2024

TAKKT AG anticipates a steady improvement in growth rates for the second half of 2024. The company has focused on strengthening its resilience through measures such as improving gross profit margins, implementing leaner cost structures, and increasing free cash flow. Organic sales in the first half of the year declined by 17.7%, with an adjusted EBITDA margin of 7.0%.

The company faced weak general conditions and challenges in its FoodService division. In response, TAKKT prioritized improving order intake and optimizing processes. CEO Maria Zesch noted that many customers are currently cutting costs, leading to reduced sales and project delays.

Despite difficult market conditions, TAKKT achieved a slight increase in free cash flow and implemented cost-saving measures expected to reduce annual expenses by over EUR 20 million. CFO Lars Bolscho highlighted efforts to review and consolidate office and warehouse locations, along with personnel adjustments.

As Maria Zesch prepares to hand over her role to interim CEO Andreas Weishaar, the company continues to address internal challenges. Weishaar affirmed TAKKT's commitment to maintaining strong brands, attractive products, and a loyal customer base while focusing on improving order intake and efficiency.