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Thursday 28 July, 2011

Takkt AG

TAKKT Group reports fast growth in the first ha...




Takkt AG /
TAKKT Group reports fast growth in the first half-year
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The issuer is solely responsible for the content of this announcement. 

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: [email protected]

 --- End of Message --- 

Takkt AG
Presselstr. 12 Stuttgart 


Listed: Regulierter Markt in Frankfurter Wertpapierbörse;


Press Release as PDF: 


http://hugin.info/131631/R/1533977/467377.pdf




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