DGAP-News: TAKKT defies the weak economic situation in Europe in 2012 with strategic acquisitions and strong US business
(firmenpresse) - DGAP-News: TAKKT AG / Key word(s): Final Results
TAKKT defies the weak economic situation in Europe in 2012 with
strategic acquisitions and strong US business
21.03.2013 / 10:30
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P R E S S R E L E A S E
TAKKT defies the weak economic situation in Europe in 2012 with strategic
acquisitions and strong US business
- Consolidated turnover rises by 10.3 percent to EUR 939.9 (852.2)
million
- Organic decline in turnover of 2.8 percent
- EBITDA margin remains stable at 14.2 percent, acquisition-adjusted at
13.8 percent
- Gross profit margin remains constant at 43.3 (43.3) percent
- Earnings per share came to EUR 1.02 (1.01)
- TAKKT cash flow rises to EUR 92.7 (87.8) million
- Ordinary dividend of EUR 0.32 per share proposed
Stuttgart, Germany, 21 March 2013. In spite of a challenging economic
environment in Europe, the TAKKT Group was able to continue along its
long-term growth path in the financial year 2012. The Group benefited from
the promising acquisitions of the companies GPA and Ratioform. The decline
in organic turnover in Europe was partly offset by strong US business. 'We
particularly benefit from our strategy of diversification in times of
economic difficulty. Thanks to our broad positioning, we are less dependent
on cyclical fluctuations in individual regions and sectors,' says CEO Dr
Felix A. Zimmermann, commenting on the figures.
Acquisition and currency effects create growth in turnover and earnings
TAKKT achieved consolidated turnover growth of 10.3 percent, bringing it to
EUR 939.9 (2011: 852.2) million. In particular, the newly acquired
companies GPA and Ratioform contributed towards this in the year under
review, as did the strong US dollar and the online business, which saw
above-average growth. Adjusted for acquisition and currency effects,
consolidated turnover fell by 2.8 percent. 'This slight drop in organic
turnover did not come as a surprise to us. As a result of the economic
conditions, many European businesses have put their investments on hold for
the time being,' states CFO Dr Claude Tomaszewski, addressing the reasons
behind this development. The growing importance of online business is
encouraging. The corresponding order intake saw an above-average rise of
32.7 percent, due in part to the newly acquired companies and their focus
on online sales channels. E-commerce business now accounts for 25.7 (21.3)
percent of the order intake.
The gross profit margin and EBITDA margin are important key performance
indicators for TAKKT. The Group has set itself the target of maintaining a
gross profit margin of over 40 percent in the long term and keeping its
EBITDA margin within the long-term target corridor of 12 to 15 percent.
TAKKT was able to meet these targets in the past financial year. The gross
profit margin remained constant at 43.3 (43.3) percent, while the EBITDA
margin was unchanged at 14.2 (14.2) percent. Adjusted for acquisitions, the
gross profit margin came to 42.4 percent, while the EBITDA margin was 13.8
percent. This slight decline is due mainly to the shift in the turnover and
earnings contributions among the divisions. TAKKT AMERICA contributed a
larger share of the consolidated turnover in 2012 than in the previous
year, although the margins it generated were below the Group average.
EBITDA inthe year under review amounted to EUR 133.8 (121.0) million,
which corresponds to a rise of 10.6 percent. Despite the higher finance
expenses and increased depreciation and amortisation - all of which are
consequences of the acquisitions - consolidated net profit also rose to EUR
67.0 (66.0) million. Earnings per share reached EUR 1.02 (1.01).
Cash flow stays strong - ordinary dividend remains constant
One of the strengths of the TAKKT Group remains its solid self-financing
capability. The TAKKT cash flow - defined as the result for the period plus
depreciation and amortisation, impairment of non-current assets and
deferred taxes recognised in profit and loss - rose to EUR 92.7 (87.8)
million. Relative to turnover, this gives rise to a slightly lower cash
flow margin of 9.9 (10.3) percent. 'In light of the solid financing
situation and the healthy balance sheet structure, the TAKKT Management
Board and Supervisory Board will propose the payment of an unchanged
ordinary dividend of EUR 0.32 per share to the shareholders at the Annual
General Meeting,' explains Tomaszewski.
Divisions: TAKKT AMERICA serves as primary driver in the financial year
2012
As expected, economic conditions brought about a shift in the shares of
consolidated turnover generated by each of the two divisions in the year
under review. While performance in the TAKKT EUROPE division was held back
by European customers' reluctance to invest, TAKKT AMERICA proved to be the
growth driver.
In addition to a declining acquisition-adjusted number of orders, the TAKKT
EUROPE division also reported a drop in the average order value. However,
the division's turnover nonetheless increased by 1.5 percent to EUR 515.1
(507.3) million as a result of the acquisition of the Ratioform Group. The
corresponding share of consolidated turnover fell to 54.8 (59.5) percent
because TAKKT EUROPE saw weaker growth than TAKKT AMERICA. Adjusted for
acquisition and currency effects, turnover decreased by 7.6 percent.
Combined with the EBITDA generated by Ratioform in the second half of 2012,
TAKKT EUROPE recorded an operating profit of EUR 102.0 (101.0) million.
This corresponds to an EBITDA margin of 19.8 (19.9) percent. Excluding
Ratioform, the margin fell to 19.3 percent. The main reason for this
development was a reduced capacity utilisation compared to the previous
year. As expected, the margin remained well above the target corridor. The
turnover of the Business Equipment Group (BEG) decreased by a mid
single-digit percentage figure, while the EBITDA margin remained well above
the target corridor. The European Office Equipment Group (OEG) had to
accept a decline in turnover in the low double-digit percentage range. The
EBITDA margin also saw a year-on-year decline and is well below the target
corridor. The Packaging Solutions Group (PSG), newly established following
the acquisition of Ratioform, contributed EUR 42.9 million to the
division's turnover in the second half of the year. The PSG is now the new
leader within the TAKKT Group in terms of profitability.
TAKKT AMERICA's turnover grew by 23.2 percent to EUR 425.2 (345.2) million,
thereby contributing 45.2 (40.5) percent of consolidated turnover. Adjusted
for acquisitions and currency effects, the rise in turnover amounted to 4.2
percent. While the absolute number of orders declined in organic terms, a
higher average order value in US dollars did provide a basis for solid
growth. At EUR 41.3 (28.6) million, EBITDA was 44.4 percent higher than in
2011.
At 9.7 (8.3) percent, the EBITDA margin almost reached double digits, which
is a medium-term target for TAKKT AMERICA. If the extraordinary effects
arising from the acquisition of GPA are excluded from the calculation, the
margin comes to 10.4 percent, which is above the aforementioned threshold.
Without the acquisition, a margin of 9.6 percent would have arisen. The
increased profitability in North America is primarily due to the improved
utilisation of the direct marketing infrastructure and higher advertising
efficiency.
In the Plant Equipment Group (PEG), the declining number of orders could
not be offset by the higher average order value, causing the group's
turnover to see a slight year-on-year decline. The EBITDA margin was in the
mid single-digit percentage range, putting it below the division average.
Even acquisition-adjusted, the Specialties Group (SPG) recorded an increase
in turnover in the mid single-digit percentage range. The increased average
order value more than compensated for the declining order number. The SPG
remains the most profitable group in the division and generates an EBITDA
margin within the Group's target corridor. The Office Equipment Group (OEG)
reported a strong performance in the year under review. It increased both
its absolute number of orders and its average order value in US-Dollars,
thereby generating the highest organic turnover growth in the division. The
EBITDA margin rose for the first time into the double-digit range.
Forecast for 2013: continuation of corporate strategy and expected economic
recovery
'Grow profitably, diversify risks and act sustainably - these are and will
continue to be the goals of the TAKKT Group,' summarises Zimmermann. 'We
have been able to overcome a challenging market environment in Europe in
2012. With the integration of the high-growth, high-margin companies GPA
and Ratioform, we have established the foundation from which we will
benefit when the global economy recovers.' In addition to greater regional
and sectoral independence, TAKKT also aims to further diversify its
marketing and sales channels in a gradual manner. 'Our goal is to take the
logical step from a mail order company to an integrated multi-channel
business.' The Group-wide strategic programme DYNAMIC has been launched
specifically for this purpose.
As in the previous year, the TAKKT Management Board has outlined three
possible scenarios for business development in the current year on the
basis of expected Group performance:
1. With a considerable improvement in GDP growth rates in comparison to
those in 2012 and purchasing managers' indices (PMIs) between 50 and 60
points, organic turnover growth (i.e. when adjusted for acquisitions
and currency effects) of between three and five percent is realistic
for TAKKT. Taking the effects of acquisitions into account, this would
generate currency-adjusted growth of nine to eleven percent.
2. If GDP growth rates remain unchanged or only improve slightly and PMI
values remain at around or slightly above 50, the Group should generate
organic turnover growth of between one and three percent. When
including the acquisitions of the 2012 financial year, this would mean
currency-adjusted turnover growth of between seven and nine percent.
3. Should GDP growth rates be worse than in 2012 and if PMIs remain below
50 points permanently, the possibility of zero growth or another
decline in organic consolidated turnover cannot be ruled out. In this
case, the decline in organic turnover would be partly compensated for
or even more than compensated for by the effects of acquisitions.
Depending on the economic environment as detailed above, TAKKT expects an
EBITDA margin of between 14 and 15 percent in the second scenario. Should
the more cautious performance scenario prove to be the case, a decline in
the EBITDA margin into the lower half of the target corridor of 12 to 15
percent cannot be excluded. However, should the more optimistic scenario
apply, the EBITDA margin may reach the upper end of the target corridor or
even exceed it slightly. 'In the light of current economic indicators, we
currently consider the second scenario to be the most probable,' explains
Zimmermann. 'There are growing signs of an economic improvement in Europe
in the second half of 2013. Despite slowing momentum, the forecast for
North America remains somewhat better than for Europe.'
IFRS figures for the TAKKT Group for the financial year 2012
(in EUR million)
2012 2011 Change in %Financial calendar
TAKKT Group turnover 939.9 852.2 10.3
Organic growth -2.8
TAKKT EUROPE 515.1 507.3 1.5
TAKKT AMERICA 425.2 345.2 23.2
EBITDA 133.8 121.0 10.6
EBITDA margin (%) 14.2 14.2
EBIT 111.6 104.1 7.2
EBIT margin (%) 11.9 12.2
Profit before tax 100.1 95.6 4.7
Pre-tax profit margin (%) 10.7 11.2
TAKKT cash flow 92.7 87.8 5.6
TAKKT cash flow margin (%) 9.9 10.3
Capital expenditure 8.5 9.3 -8.6
TAKKT cash flow per share in EUR 1.41 1.34
Earnings per share in EUR 1.02 1.01
Non-current assets 679.7 376.9 80.3
in % of total assets 77.7 68.5
Total equity 312.0 301.0 3.7
in % of total assets 35.7 54.7
Net borrowings 324.9 93.7 246.7
Employees (full-time basis) as at 31.12. 2,351 1,869 25.8
The figures for the first three months of 2013 will be published on 30
April 2013. The Annual General Meeting will be held at the Forum
Ludwigsburg on 07 May 2013.
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 more than 200,000 products for the areas of business and
warehouse equipment, classic and design-oriented office furniture and
accessories, transport packaging, display articles, supplies for retailers,
the food service industry and the hotel market.
TAKKT Group employs more than 2,500 staff and has over three million
customers worldwide. 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 Claude Tomaszewski, CFO, Tel. +49 711 3465-8207
Email: investor(at)takkt.de
End of Corporate News
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Language: English
Company: TAKKT AG
Presselstr. 12
70191 Stuttgart
Germany
Phone: +49 (0)711 346 58 -0
Fax: +49 (0)711 346 58 - 10
E-mail: investor(at)takkt.de
Internet: www.takkt.de
ISIN: DE0007446007
WKN: 744600
Indices: SDAXListed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, München
End of News DGAP News-Service
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