TAKKT Group reports fast growth in the first half-year

Thursday, 28. July 2011 07:31
Takkt AG /
TAKKT Group reports fast growth in the first half-year
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Turnover and earnings forecast increased for 2011

Stuttgart, Germany, 28 July 2011. TAKKT Group continued to report a positive
trend in demand in the second quarter of the current financial year. Overall,
turnover increased by 10.8 percent in the first half-year. The earnings figures
grew disproportionately, not least due to a higher capacity utilisation of the
infrastructure. Both divisions benefited from the robust state of the economy
and the successes of the Group's growth initiatives. In light of this, the
Management Board is again raising its turnover and earnings forecast for the
financial year 2011.

Significant events in the first half-year of 2011
* Organic increase in turnover of 11.8 percent in the first half-year and
11.0 percent in the second quarter
* EBITDA margin rise to 16.2 (2010: 13.9) percent
* Earnings per share up by 50.0 percent to EUR 0.57 (0.38)
* Repositioning of European OEG started
* Operational start of the gaerner brand in Belgium


The growth initiatives started across the Group, along with the still good
development of the global economy, continue to reflect positively in TAKKT's
business figures. Consolidated turnover in the first six months of 2011 reached
EUR 417.6 (previous year: 376.8) million, an increase of 10.8 percent. Adjusted
for currency effects, turnover rose by 11.8 percent. "The momentum of the upturn
was higher in the first six months than we had expected," said TAKKT's CEO Dr
Felix A. Zimmermann. "Especially the strong business in Germany and larger
project orders placed with the Specialties Group in the US contributed towards
this good development in the second quarter. For the second half of the year, we
anticipate a slowdown in turnover growth, due not least to the growing base
effect. Overall, however, TAKKT will achieve higher growth in 2011 than imagined
just three months ago."

The gross profit margin improved to 43.5 (42.8) percent. Reasons for this were
the high proportion of stock business and the increased share of turnover
achieved by the higher-margin TAKKT EUROPE division. In the further course of
the year, TAKKT expects that the growing number of large orders coming with
economic upswings and the accompanying rebates will lead to increasing pressure
on the gross profit margin.

In addition to the higher gross profit margin, turnover-related higher capacity
utilisation of the mail order infrastructure and the increased advertising
efficiency triggered a marked improvement in operational profitability compared
with the same period in the previous year. In the first six months of the
financial year, EBITDA (earnings before interest, taxes, depreciation and
amortisation) climbed to EUR 67.8 (52.2) million and the EBITDA margin rose to
16.2 (13.9) percent.

The TAKKT cash flow showed its usual strong development during the reporting
period. It rose to EUR 49.4 (36.8) million, increasing by 34.2 percent. The cash
flow margin came in at 11.8 (9.8) percent.

The Group's strong internal financing capability enabled the company to repay
borrowings amounting to EUR 9.5 million. Currency changes - mainly the weaker US
dollar on the reporting date - had a further positive effect so that net
borrowing as of 30 June 2011 fell to EUR 120.5 million overall, compared with
EUR 139.2 million on 31 December 2010. In the first half of 2011, the total
equity ratio came closer to the upper end of TAKKT's long-term target corridor
of 30 to 60 percent at 50.0 percent (46.5 percent on 31 December 2010).

TAKKT EUROPE continues at fast pace
Due to their good market position, the TAKKT EUROPE companies benefit from the
continuously robust state of the economy, especially in its core market Germany.
Overall, TAKKT EUROPE generated turnover of EUR 254.5 (222.4) million,
equivalent to 60.9 (59.0) percent of the consolidated turnover. Its growth rate
was at 14.4 percent and 12.0 percent adjusted for currency effects. Business
development continued to differ in the division's two groups: the Business
Equipment Group (BEG) and the Office Equipment Group (OEG). The KAISER + KRAFT,
gaerner, Gerdmans, KWESTO and Certeo brands within the BEG division achieved
double-digit turnover growth. Although the repositioning of the OEG division,
started at the end of the first quarter of 2011, gives reason for optimism, the
Group had to digest a decrease in turnover, as expected, due to measures
connected with the repositioning. Nevertheles, the OEG reached a positive EBITDA
on the previous year's level.

Overall, TAKKT EUROPE generated an EBITDA of EUR 57.2 (41.9) million in the
first half-year, thereby increasing its EBITDA margin to 22.5 (18.8) percent.

TAKKT AMERICA with good development
The TAKKT AMERICA division benefits from the broad diversification of its client
base and product portfolio. All three groups achieved pleasing growth rates in
the first half-year. While the Plant Equipment Group (PEG) reported good single-
digit turnover growth, both the Office Equipment Group (OEG), with a stable
double-digit turnover growth, and especially the Specialties Group (SPG) showed
a significant improvement. This was mainly due to several larger projects.
Overall, turnover rose to EUR 163.2 (154.5) million, equivalent to 39.1 (41.0)
percent of consolidated turnover. Organic turnover growth amounted to 11.4
percent.

TAKKT AMERICA generated EBITDA of EUR 15.6 (14.1) million in the period under
review, the EBITDA margin was at 9.6 (9.1) percent. In connection with this
margin growth it must be noted that advertising expenditure being incurred
earlier at the PEG had a burdening effect. This effect will be offset in the
third quarter.

Turnover and earnings growth forecast increased
For the remainder of the year, TAKKT anticipates a continuation of the generally
positive economic trend albeit at a slowing-down pace. "As the first half-year
exceeded our expectations, we are raising our forecasts for the current year,"
said CFO Dr Florian Funck. "We now anticipate organic turnover growth of around
six percent for 2011. There continue to be risks of significant setbacks for the
global economy, such as a sharpening sovereign debt crisis coming. If this
turnover target is achieved, the Group EBITDA margin may reach 14.0 percent and
therefore be in the upper half of our long-term target corridor of twelve to 15
percent."

Management Board changes announced
The current CFO, Dr Florian Funck, will leave the company on 31 August 2011
having been with it for seven years. On 01 September 2011, he will join the
Management Board of TAKKT's majority shareholder Franz Haniel & Cie. GmbH. Dr
Claude Tomaszewski was proposed to the Supervisory Board as successor.
Tomaszewski (42), who holds a Master's degree in Business Administration,
currently works as Group Finance Director at AAH Pharmaceuticals, a British
subsidiary of Celesio, which is also part of the Haniel Group. Previously,
Tomaszewski was Head of the corporate controlling and accounting department for
several years at Franz Haniel & Cie. GmbH, the strategic management holding of
the Haniel Group.


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 July
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 Q2 2011
in EUR million

+------------------+-------+-------+-----------+---------+---------+-----------+
|    |Q2 2011|Q2 2010|Change in %|HY 1 2011|HY 1 2010|Change in %|
+------------------+-------+-------+-----------+---------+---------+-----------+
|TAKKT Group | 204.1| 191.0| 6.9| 417.6| 376.8| 10.8|
|turnover | | | | | | |
| | | | | | | |
|Organic growth |  |  | 11.0|  |  | 11.8|
| | | | | | | |
|  TAKKT EUROPE | 120.8| 108.4| 11.4| 254.5| 222.4| 14.4|
| | | | | | | |
|  TAKKT AMERICA | 83.3| 82.6| 0.8| 163.2| 154.5| 5.6|
+------------------+-------+-------+-----------+---------+---------+-----------+
|EBITDA | 31.2| 23.5| 32.8| 67.8| 52.2| 29.9|
| | | | | | | |
|EBITDA margin | 15.3| 12.3|  | 16.2| 13.9|  |
+------------------+-------+-------+-----------+---------+---------+-----------+
|EBIT | 27.0| 18.4| 46.7| 59.4| 42.3| 40.4|
| | | | | | | |
|EBIT margin | 13.2| 9.6|  | 14.2| 11.2|  |
+------------------+-------+-------+-----------+---------+---------+-----------+
|Profit before tax | 25.3| 15.9| 59.1| 55.8| 37.6| 48.4|
| | | | | | | |
|Pre-tax profit | 12.4| 8.3|  | 13.4| 10.0|  |
|margin | | | | | | |
+------------------+-------+-------+-----------+---------+---------+-----------+
|TAKKT cash flow | 22.9| 16.3| 40.5| 49.4| 36.8| 34.2|
| | | | | | | |
|TAKKT cash flow | 11.2| 8.5|  | 11.8| 9.8|  |
|margin | | | | | | |
+------------------+-------+-------+-----------+---------+---------+-----------+


Company calendar
The figures for the first nine months of 2011 will be published on 27 October
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 roughly 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;


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