TAKKT Group feels effects of economic recovery

4/29/2010, 7:30 AM (Source: GlobeNewswire)

TAKKT+0.69%

14.540
Chart for: TAKKT AG O.N.

SDAX-0.20%

16,641.50
Chart for: SDAX P-IN.
Takkt AG / TAKKT Group feels effects of economic recovery processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

Operational profitability increases as expected



Stuttgart, Germany, 29 April 2010. TAKKT Group benefited from the global
economic recovery in the first quarter of 2010 and only posted a slight overall
decline in turnover. In March, the Group already generated positive organic
growth year-on-year. Operational profitability improved compared to the previous
year's period. The gross profit margin and cash flow also developed positively.
Therefore, the Management Board sees the expectations for the first three months
expressed at the beginning of the year confirmed.



Significant events 2010

* Organic turnover decline of 4.1 percent
* Improvement in EBITDA margin to 15.4 (14.4) percent
* New Group structure implemented from 01 January, 2010
* Acquisition of remaining minority interests in Dutch and Belgian
subsidiaries


Despite the slight economic improvement, TAKKT continued to feel the effects of
the global economic crisis in early 2010. In the first quarter of 2010, TAKKT
Group generated consolidated turnover of EUR 185.8 (2009: 186.4) million. This
corresponds to a 0.3 percent decline on the previous year. Adjusted for currency
effects and the positive impact of acquiring the US restaurant equipment
supplier Central in 2009, the decline in turnover amounts to 4.1 percent. This
was due to lower average order values, although the absolute number of orders
was already higher than the prior year.



"Considering the economic signals and the positive turnover trend, we expect
turnover development to pick up in the coming quarters and to return to the
growth path throughout the Group in the next quarter," said CEO Dr Felix A.
Zimmermann.



The efficiency improvements introduced in 2009 as part of the FOCUS programme
have helped to increase operational profitability compared to the previous year.
In the first quarter of 2010, EBITDA (earnings before interest, tax,
depreciation and amortisation) rose to EUR 28.7 (26.9) million. The EBITDA
margin came to 15.4 (14.4) percent.



The development of the gross profit margin was again satisfactory, following
2009's positive trend at both divisions and reaching 43.0 (42.9) percent overall
in the first three months. Adjusted for acquisition effects, the margin amounted
to 43.4 percent.



Cash flow again proved to be a specific strength of TAKKT's business model in
the first quarter of 2010, increasing by 4.1 percent to EUR 20.5 (19.7) million.
The cash flow margin rose to 11.0 (10.6) percent.



New Group structure from 2010

The furthest-reaching change initiated as part of the FOCUS and GROWTH strategy
programmes launched in 2009 relates to the structures and responsibilities
within TAKKT Group. Since 01 January 2010, the Group is made up of two divisions
- TAKKT EUROPE and TAKKT AMERICA. TAKKT EUROPE contains the Business Equipment
Group (BEG) and the Office Equipment Group (OEG). The BEG consists of the
companies which previously belonged to the KAISER + KRAFT EUROPA division, while
the OEG comprises the European Topdeq companies. TAKKT AMERICA (previously K + K
America) will still be made up of the Plant Equipment Group (PEG), the
Specialties Group (SPG) and the Office Equipment Group (OEG).



Inconsistent development within TAKKT EUROPE

At the beginning of the year, TAKKT EUROPE continued to suffer from customers'
buying reluctance. All in all, the division generated turnover of EUR 114.0
(120.2) million - a fall of 5.2 percent. Developments at the individual groups
varied. The BEG finished the quarter with a moderate, single-digit fall in
turnover. However, the OEG (respectively the European Topdeq companies) had to
take another double-digit turnover decline. One reason for this was the
termination of Topdeq's US operations in late 2009, which were included in the
previous year's figures.



TAKKT EUROPE`s EBITDA amounted to EUR 23.2 (20.5) million. This is equivalent to
an increase of 13.2 percent. The EBITDA margin rose accordingly to 20.4 (17.1)
percent. This higher profitability is primarily due to improved advertising
efficiency at both groups, increased capacity utilisation at the BEG and a
higher gross profit margin.



TAKKT AMERICA benefits from broad diversification

After showing signs of a recovery already in the second half of 2009, TAKKT
AMERICA continued to perform well in Q1 2010. At USD 99.4 (86.3) million,
turnover was up 15.2 percent on the previous year. Adjusted for the Central
acquisition, the division recorded a 1.2 percent turnover rise in US dollars.
The number of incoming orders continued to recover in the first quarter.
However, the average order value remains below the previous year's figure.
Converted into euros, turnover (including Central) amounted to EUR 71.9 (66.3)
million.



The broad diversification of the customer and product portfolio had a positive
effect on the division's development. TAKKT AMERICA benefited from organic
turnover growth at the SPG in all three months of the first quarter.
Additionally, the PEG and OEG only experienced low, single-digit declines in
turnover in Q1, as expected. In the period under review, TAKKT AMERICA generated
EBITDA of EUR 7.4 (8.4) million. This corresponds to an EBITDA margin of 10.3
(12.7) percent. The lower margin is attributable to timing differences in
expenses, especially advertising costs.



Acquisition of minority interests

In April 2010, TAKKT acquired the remaining minority interests in the Dutch
Group-company Vink Lisse B.V. and the Belgian subsidiary KAISER + KRAFT N.V. for
a purchase price of almost EUR 11 million. The acquisition was financed via
TAKKT AG's unutilised credit lines.



Based on conservative valuation assumptions, the acquisition will generate a
return on capital invested which far exceeds the Group's weighted cost of
capital. The acquisition of these remaining minority interests means that there
are no other minority interests within TAKKT Group.



Outlook for 2010 - moderate turnover growth anticipated

The global economic developments in the first quarter of 2010 showed some first
light at the end of the tunnel. The economy continued to recover from the deep
recession, which was mainly initiated by the US real estate crisis. In this
climate, the Management Board expects positive growth rates in turnover and
earnings at all divisions from Q2 2010 onwards. "The current improvement in the
economic climate makes it increasingly probable, that TAKKT Group's organic
turnover growth will reach the upper limit, as advised beginning of 2010, of two
percent or even exceed this. The EBITDA margin for the Group should reach at
least eleven percent," said Dr Florian Funck, CFO.



By expanding into additional European markets, TAKKT Group is laying an
important cornerstone for its return to growth. Following the launch of KAISER +
KRAFT in Russia in January, preparations are being made to introduce the new
online brand Certeo in an additional European market. There are also plans to
roll out gaerner in Italy and Hubert in Switzerland in 2010. Additionally,
Topdeq will enter the Spanish market with an online-only presence. At product
level, the range of private-brand articles will be extended due to positive
experience throughout the Group. The BEG has been offering transport equipment
at attractive prices with its new private-brand Quipo since March 2010, while
Topdeq launched its own range of high-quality office furniture under the name of
siqnatop in January 2010.



"With our sound balance sheet structure, consistently strong cash flow and a
broad regional alignment, we consider ourselves well positioned for further
growth, but also to handle any economic setbacks," Zimmermann commented.


Conference call

We invite you to directly address the Management Board with your questions. We
will be hosting a conference call for this purpose at 15:00 (CEST) on 29 April
2010, during which we will be open to questions. To take part, please dial the
following number: +49 711 9659-9628 (access code: 779134#).



IFRS figures of TAKKT Group to the end of Q1 2010



in EUR million
+-----------------------+---------+---------+-------------+
|     | Q1 2010 | Q1 2009 | Change in % |
+-----------------------+---------+---------+-------------+
| Turnover TAKKT Group | 185.8 | 186.4 | -0.3 |
| | | | |
|   Organic growth |   |   | -4.1 |
| | | | |
|   TAKKT EUROPE | 114.0 | 120.2 | -5.2 |
| | | | |
|   TAKKT AMERICA (€) | 71.9 | 66.3 | 8.4 |
| | | | |
|   TAKKT AMERICA ($) | 99.4 | 86.3 | 15.2 |
+-----------------------+---------+---------+-------------+
| EBITDA | 28.7 | 26.9 | 6.7 |
| | | | |
| EBITDA margin | 15.4 | 14.4 |   |
+-----------------------+---------+---------+-------------+
| EBIT | 23.9 | 22.8 | 4.8 |
| | | | |
| EBIT margin | 12.9 | 12.2 |   |
+-----------------------+---------+---------+-------------+
| Profit before tax | 21.7 | 21.4 | 1.4 |
| | | | |
| Pbt margin | 11.7 | 11.5 |   |
+-----------------------+---------+---------+-------------+
| Cash flow | 20.5 | 19.7 | 4.1 |
| | | | |
| Cash flow margin | 11.0 | 10.6 |   |
+-----------------------+---------+---------+-------------+



Short profile of TAKKT AG

TAKKT is the leading B2B direct marketing specialist for business equipment in
Europe and North America. The Group is represented with its brands in more than
25 countries. The product range of the TAKKT subsidiaries comprises over
160,000 items from the areas business and warehouse equipment, classic and
design-oriented office furniture and accessories, and supplies for retailers,
the food service industry and the hotel market.



TAKKT Group employs some 1,800 staff, has around three million customers
worldwide and distributes more than 55 million catalogues and mailings per year.



TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse's Prime
Standard on 01 January 2003.





Contacts:

Dr Felix A. Zimmermann, CEO

Tel. +49 711 3465-8201



Dr Florian Funck, CFO

Tel. +49 711 3465-8207



Email: investor@takkt.de



[HUG#1409511]



--- End of Message ---

Takkt AG
Neckartaltstr. 155 Stuttgart null


Listed: Regulierter Markt in Frankfurter Wertpapierbörse;


Press Release as PDF: http://hugin.info/131631/R/1409511/362046.pdf
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.