TAKKT AG: TAKKT achieves financial and strategic targets for 2022 and proposes special dividend

TAKKT achieves financial and strategic targets for 2022 and proposes special dividend
 

• Sales increased by 13.5 percent in 2022, organic growth at 7.5 percent
• EBITDA rose more strongly than sales to EUR 132.1 (112.6) million
• Substantial increase in free TAKKT cash flow to EUR 70.4 (51.9) million
• TAKKT expects an improvement in the second half of the year after a subdued start to the year

Stuttgart, Germany, February 23, 2023. “We achieved our financial targets in 2022 and even exceeded them in some cases. And this despite the challenging environment. I am very proud of our team performance in this exceptional year," says CEO Maria Zesch. For the full year 2022, organic growth came to 7.5 percent and thus within the targeted high single-digit percentage range. Sales reported in euros benefited from positive currency effects and increased by 13.5 percent to EUR 1,336.8 (1,178.0) million. Thanks to the consistent passing on of higher prices for products and shipping, the Group achieved a gross profit margin of 39.3 (40.2) percent, thereby remaining close to the target value of 40 percent despite high inflation. Approximately half of the decline compared to the previous year is attributable to structural effects resulting from the higher share of US business. TAKKT was able to offset the slight decrease in the gross profit margin through more efficient marketing and a lower personnel cost ratio. EBITDA rose more strongly than sales, with an increase of 17.3 percent to EUR 132.1 (112.6) million. This is above the forecast corridor of EUR 120 to 130 million. As a result of the good earnings and systematic sale of inventories, which had risen considerably in the middle of the year, the Group was able to significantly increase the free TAKKT cash flow. It rose by 35.8 percent to EUR 70.4 (51.9) million.

Given the good cash flow and continued high equity ratio of over 60 percent, the TAKKT Management Board in agreement with the Supervisory Board will propose a dividend payment of EUR 1.00 per share. “We want our shareholders to participate in the good results of the past year and, in addition to the base dividend of EUR 0.60, we will also pay a special dividend of EUR 0.40 per share. Even after a dividend payment of this amount, we have a sufficient balance sheet leeway and financial resources to increase our focus on M&A in 2023,” says CFO Lars Bolscho.

In the final quarter of 2022, customer demand was subdued as expected, with the economic downturn resulting in reluctance to buy, especially in Europe. Organic growth in the Group amounted to minus 1.0 percent. Due to the positive currency effects, reported sales rose by 3.7 percent to EUR 329.2 (317.5) million. TAKKT also continued to focus on inflation management in the fourth quarter. While the Group was able to maintain the gross profit margin relatively stable in the first nine months of the fiscal year, it saw a decline in the final quarter, also due to temporary negative effects. EBITDA came to EUR 27.0 (30.5) million.

In addition to the financial targets, TAKKT also met the goals that it set for itself in 2022 with regard to the implementation of the new strategy with the three pillars of Growth, OneTAKKT and Caring. “Last year, with the integration of the division Industrial & Packaging and the decision to harmonize the brands, we focused on Europe and laid the foundation for our future success. Our next step will be to integrate our US activities more closely in the transformation process,” continues CEO Maria Zesch. Since the end of last year, the division FoodService has been working on a stronger integration. Market-related functions such as marketing and e-commerce as well as HR and finance are already working in an integrated way.

For 2023, economic forecasts for Europe and the US are subject to a high degree of uncertainty. Inflation and a restrictive monetary policy will likely continue to have a negative impact on economic development. TAKKT expects a subdued start to the new year and an improvement in the second half of the year. “For 2023, we are positioning ourselves very flexibly, are consistent in managing costs and well prepared for a change in general conditions,” says CFO Lars Bolscho with respect to the current fiscal year. In addition to further implementation of the strategy with the growth initiatives, the gross profit margin and the focus on cash flow will also be high priorities in 2023.

Earnings call: February 23, 2023, at 2:00 p.m. (CET).

Please register in advance to participate in the Earnings Call. You can find the registration link at: www.takkt.de/event

Financial calendar

TAKKT will publish the final figures for the 2022 fiscal year and a detailed outlook together with the annual report on March 28.

Preliminary IFRS figures for the TAKKT Group for the 2022 Fiscal Year

(in EUR million)

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 25 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.

Contacts:

Michael Loch      phone +49 711 3465-8222
Benjamin Bühler      phone +49 711 3465-8223
Email: investor@takkt.de