Good start to the new financial year for TAKKT Group

Thursday, 28. April 2011 07:30
Takkt AG /
Good start to the new financial year for TAKKT Group
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.

Double-digit growth in turnover and earnings


Stuttgart, Germany, 28 April 2011. At the beginning of the new financial year,
TAKKT Group continued the positive trend seen in the previous quarters. Backed
by further good economic development and a strong business model, the Group
posted organic turnover growth of 12.5 percent. Operational profitability also
improved, with the EBITDA margin reaching 17.1 (2010: 15.4) percent. For the
full-year 2011, the TAKKT Management Board increases its forecast and
anticipates organic turnover growth of a good five percent and a year-on-year
increase in operational profitability.


Significant events in the first quarter of 2011
* Organic turnover growth of 12.5 percent

* EBITDA margin increased to 17.1 (15.4) percent

* Earnings per share up by 47.6 percent to EUR 0.31 (0.21)

* Option secured on extension site for European mail order centre

* Repositioning of European OEG started




In the first quarter of 2011, TAKKT Group profited from the ongoing positive
economic development around the world and the growth initiatives initiated in
the past two years. TAKKT Group generated consolidated turnover of EUR 213.5
(185.8) million. This is an increase of 14.9 percent compared to the first
quarter of the previous year. Adjusted for currency effects, the growth rate was
12.5 percent. However, this rapid pace of growth is expected to slow down as the
year progresses due to an increasing base effect.

"TAKKT has had a good start to the year 2011 both in Europe and North America,
and the Group is growing profitably," commented Dr Felix A. Zimmermann, CEO of
TAKKT AG, on the figures for the first three months of 2011. "We posted rising
order numbers and higher average order values at almost all Group companies."

The gross profit margin improved again, climbing to 43.7 percent compared to
43.0 percent in the previous year's quarter. Better advertising efficiency and
increased utilisation of the central mail order infrastructures in Europe and
North America also prompted EBITDA (earnings before interest, taxes,
depreciation and amortisation) to increase to EUR 36.6 (28.7) million. This
resulted in an EBITDA margin of 17.1 (15.4) percent.

The TAKKT cash flow once again proved the particular strength of the Group's
business model, growing by 29.3 percent to EUR 26.5 (20.5) million. The cash
flow margin rose to 12.4 (11.0) percent.

TAKKT EUROPE continues to drive growth
TAKKT EUROPE once again was the Group's growth driver and strongest contributor
to earnings at the beginning of 2011, due in part to strong business in Germany.
In total, the division generated turnover of EUR 133.7 (114.0) million - an
increase of 17.3 percent and a share of 62.6 (61.3) percent of total turnover.

As expected, development at the individual groups varied. While the Business
Equipment Group (BEG) confirmed its strong growth rates of the previous quarter
with clear double-digit turnover growth, the Office Equipment Group (OEG) saw a
double-digit fall in turnover as repositioning measures were initiated. The
repositioning of the Topdeq brand includes an improved product portfolio, a new
marketing strategy and additional service offerings. Furthermore, the OEG's
first web-only brand - Furnandi - started its operations in February. As all
these new activities need time to establish in the market, it is too soon to
reliably assess the success of the programme as yet.

Profitability at TAKKT EUROPE improved again, to which both groups at the
division contributed their share. All in all, the division generated EBITDA of
EUR 31.8 (23.2) million in the first three months; the EBITDA margin came in at
23.8 (20.4) percent.

All groups support growth at TAKKT AMERICA

The TAKKT AMERICA division - consisting of the Plant Equipment Group (PEG), the
Specialties Group (SPG) and the Office Equipment Group (OEG) - increased its
turnover to EUR 79.9 (71.9) million in the first quarter of 2011. This growth of
11.1 percent is mainly attributable to the higher average order value. But also
order numbers were up on the year. In organic terms, turnover growth amounted to
9.5 percent. TAKKT AMERICA contributed 37.4 (38.7) percent to consolidated
turnover.

All three groups at the division remained on a steady growth path at the
beginning of the year. The SPG achieved high single-digit organic growth in
turnover, while growth at the PEG and OEG even showed double-digit figures.

EBITDA at TAKKT AMERICA came to EUR 7.1 (7.4) million in the first three months.
This corresponds to an EBITDA margin of 8.9 (10.3) percent. This decline is
mainly due to advertising expenditure being incurred earlier in the year than in
2010. Adjusted for this effect, EBITDA was higher than in the previous year - as
was the operational margin - although anticipated start-up losses at the
European Hubert companies and IndustrialSupplies.com had a negative impact on
earnings.

Outlook for 2011 - turnover growth of a good five percent expected
Economic developments further picked up pace at the beginning of 2011. However,
a base effect due to the previous year's increasingly higher figures will appear
from the second quarter onwards, prompting growth rates to decline as the year
progresses. "Given the good course of business seen in the first quarter and the
ongoing positive economic indicators, we are raising the forecast for organic
turnover growth. We now anticipate growth of a good five percent for the Group
in the full-year 2011," explains Dr Florian Funck, CFO. As regards the EBITDA
margin, TAKKT's Management Board currently expects the figure to exceed 13.0
percent and therefore to be in the middle of the long-term target corridor of
twelve to 15 percent.

Regardless of the general development in demand, TAKKT will continue to drive
expansion in 2011 by extending its portfolio of brands. Following the launch of
Furnandi in the European OEG, preparations are currently being made to roll out
a web-only brand for the SPG in the USA. This would give TAKKT a web-only
activity in each of its five groups. In the future, promoting e-commerce will
remain one of the key aspects of the GROWTH programme launched in 2009.
Furthermore, it is intended to further increase turnover with private brands -
the Group aims to generate 20 percent of its total turnover with these products
in the medium term. Private brands such as EUROKRAFT, siqnatop, office akktiv,
Relius and Quipo currently account for ten percent of the Group's business.

Larger logistics facilities will be needed for this sustained path of growth at
TAKKT in the medium and long term. For this reason, TAKKT secured an option on
an extension site directly adjacent to the European mail order centre in Kamp-
Lintfort at the end of January 2011. This expansion option runs until 2015.

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 28 April
2011, during which we will be open to questions. To take part, please dial the
following number: +49 69 201744-295 (access code: 779134#).



IFRS figures for TAKKT Group to the end of Q1 2011

(in EUR million)
+------------------------+----------+----------+--------------------+
|     |  Q1 2011 |  Q1 2010 |  Change in percent |
+------------------------+----------+----------+--------------------+
| TAKKT Group turnover | 213.5 | 185.8 | 14.9 |
| | | | |
|   organic growth | |   | 12.5 |
| | | | |
|   TAKKT EUROPE | 133.7 | 114.0 | 17.3 |
| | | | |
|   TAKKT AMERICA | 79.9 | 71.9 | 11.1 |
+------------------------+----------+----------+--------------------+
| EBITDA | 36.6 | 28.7 | 27.5 |
| | | | |
| EBITDA margin | 17.1 | 15.4 |   |
+------------------------+----------+----------+--------------------+
| EBIT | 32.4 | 23.9 | 35.6 |
| | | | |
| EBIT margin | 15.2 | 12.9 |   |
+------------------------+----------+----------+--------------------+
| Profit before tax | 30.5 | 21.7 | 40.6 |
| | | | |
| Pre-tax profit margin | 14.3 | 11.7 |   |
+------------------------+----------+----------+--------------------+
| TAKKT cash flow | 26.5 | 20.5 | 29.3 |
| | | | |
| TAKKT cash flow margin | 12.4 | 11.0 |   |
+------------------------+----------+----------+--------------------+



Company calendar
The figures for the first half-year of 2011 will be published on 28 July 2011.
The Annual General Meeting will be held at the Forum Ludwigsburg on 04 May
2011. TAKKT will hold its first Capital Market Day in Düsseldorf/Kamp-Lintfort
on 17 May 2011.

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 some
160,000 items for the areas of 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 approximately 50 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

--- End of Message ---

Takkt AG
Presselstr. 12 Stuttgart


Listed: Regulierter Markt in Frankfurter Wertpapierbörse;


Press release as PDF:
http://hugin.info/131631/R/1509637/444479.pdf




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Takkt AG via Thomson Reuters ONE

[HUG#1509637]
Related Links: TAKKT AG
Author:
Hugin
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.