TAKKT Group turnover still under pressure
(Thomson Reuters ONE) - Measures to adjust structures and capacities weigh on profits 2009 asexpectedStuttgart, Germany, 29 October 2009. Turnover within the TAKKT Groupcontinued to feel the negative effects of the global economic crisisin the third quarter of the year as the Group recorded a 22.5 percentdecline in turnover in this period. In spite of this massive slump inturnover, TAKKT managed to keep its operational profitability indouble digits, with an EBITDA margin of 10.1 percent. Based on thebusiness development in the third quarter, the Management Board hasfurther specified its forecast for 2009.Significant events in 2009* Currency and acquisition-adjusted decline in turnover of 28.4 percent* Gross profit margin above previous year's level at 41.9 percent* Acquisition of the leading US mail order group for restaurant equipment* TAKKT wins first place in the German Investor Relations Award* FOCUS and GROWTH programmes launchedFOCUS and GROWTH deliver first resultsTAKKT introduced the FOCUS and GROWTH programmes in 2009 in responseto the ongoing crisis in demand. FOCUS reviews the existing andpotential value contribution of all the Group's activities, processesand structures, and adequately adjusts its cost structures andcapacities to the demand situation, while GROWTH pools andprioritises all the Group's clearly identified growth initiatives andaccelerates their implementation. Beside the measures announced athalf-year, further FOCUS measures have been determined in the thirdquarter. Mainly at KAISER + KRAFT EUROPA, the personnel capacities atthe production site in Haan near Duesseldorf will be adjusted to theeconomic situation and the Haan warehouse will be closed on 31December 2009. "All FOCUS measures determined so far are beingimplemented according to plan and shall be concluded until the end ofthe year," said CEO Dr Felix A. Zimmermann.All FOCUS measures are connected with one-time extraordinary expensesof slightly more than EUR 5 million (at the EBITDA level) in 2009, ofwhich just under EUR 3 million are already included in the profit forthe first nine months of 2009. The Management Board is reckoning witha positive earnings effect of more than EUR 3 million per annum fromall the FOCUS measures as of 2010.Changes to the corporate structure in 2010For reasons that include the closing down of Topdeq in the USA, thecorporate structure of the TAKKT Group is set to change on 01 January2010. From then on, the TAKKT Group will consist of two businessdivisions: TAKKT EUROPE and TAKKT AMERICA. TAKKT EUROPE will comprisethe two following groups: the Business Equipment Group (BEG),consisting of the companies of the former KAISER + KRAFT EUROPAdivision, and the Office Equipment Group (OEG), made up of the Topdeqcompanies. TAKKT AMERICA will continue to consist of the PlantEquipment Group (PEG), the Office Equipment Group (OEG) and theSpecialties Group (SPG).The structural changes will result in the downsizing of theManagement Board from four to three members. As the CEO, Dr Felix A.Zimmermann will remain in charge of the TAKKT AMERICA division, whileFranz Vogel will assume responsibility for TAKKT EUROPE within theManagement Board, and Dr Florian Funck will continue to be CFO.Didier Nulens is retiring from the TAKKT AG Management Board as of 31December 2009 and will henceforth focus on managing the Topdeqactivities respectively the Office Equipment Group within TAKKTEUROPE.Additional GROWTH measure: expansion into RussiaThe new e-commerce company Certeo, which was announced as part of theGROWTH programme, went into operation as planned in October 2009, andthe expansion into the service sector progressed to the next levelwhen Hubert was launched in France. The Management Board has alsodecided to expand the successful TAKKT business model into Russia,introducing the KAISER + KRAFT brand there in early 2010. More GROWTHinitiatives are in the pipeline for 2010 and their implementation iscurrently being worked on intensively.Strong buying resistance continues to affect TAKKT GroupThe TAKKT Group generated turnover of EUR 544.9 (2008: 703.2)million in the first nine months of 2009, which represents ayear-on-year downturn of 22.5 percent. Adjusted for acquisition andcurrency effects, consolidated turnover was down by 28.4 percent. CFODr Florian Funck commented on the development of turnover as follows:"The decline in turnover slowed down in the third quarter. Therefore,the trough of the crisis seems to be behind TAKKT. However, it isstill too soon to talk of a substantial upturn in demand."The TAKKT Group's gross profit margin rose to 41.9 (41.7) percent.Adjusted for acquisition effects, it increased to 42.3 percent thanksto improvements in purchasing prices. As expected, EBITDA (earningsbefore interest, tax, depreciation and amortisation) fell on the backof the sharp downturn in business in the first nine months, from EUR108.2 to 55.2 million, equating to an EBITDA margin of 10.1 (15.4)percent. The drop in profits reduced cash flow from EUR 78.0 to 40.7million, for a cash flow margin of 7.5 (11.1) percent."The unusually severe economic downturn meant that it was notpossible to maintain operational profitability at a steady level, inspite of comprehensive measures implemented to adjust capacities andcost structures to the economic situation," Funck commented. Adjustedfor extraordinary expenses relating to the FOCUS programme, TAKKT hadan EBITDA margin of 10.7 percent.Investment abstinence weighs heavily on turnover of KAISER + KRAFTEUROPAThe turnover of the largest and most profitable division, KAISER +KRAFT EUROPA, fell by 32.4 percent to EUR 276.0 (408.1) million up tothe end of the third quarter, primarily as a result of lower ordernumbers and lower average order values. Turnover developed negativelyacross the board, with the companies in Eastern Europe continuing tosuffer the most. EBITDA was down from EUR 85.2 to 40.3 million andthe EBITDA margin fell to 14.6 (20.9) percent.Topdeq experiences sharp slump in turnoverTopdeq, the specialist for design-oriented office equipment, suffereda fall in turnover of 30.8 percent down to EUR 43.3 (62.6) million inthe first nine months of 2009. This downward trend was mostpronounced in the US market. Adjusted for the positive currencyeffects of the Swiss franc and the US dollar, the organic drop inturnover was 32.3 percent. EBITDA fell to EUR -1.5 (5.5) million,resulting in an EBITDA margin of -3.5 (8.8) percent.Turnover decline varies in severity within K + K AmericaSo far this year, the K + K America division has continued to farethe best. Its turnover fell by 13.0 percent to USD 308.2 (354.3)million, but the initial consolidation of Central Restaurant Products(Central) had a positive effect. Even when adjusted for the effectsof this acquisition, the division still developed slightly betterthan the rest of the Group with a minus of 22.4 percent. Whentranslated into the reporting currency of euro, turnover fell by 3.0percent to EUR 226.0 (233.1) million. But business has not developedin the same way throughout the division, and the Plant EquipmentGroup, which focuses on clients from the manufacturing industries,has had to absorb losses similar to those incurred by the Europeancompanies. In contrast, the Office Equipment Group and theSpecialties Group have benefited relatively from improvement in thebuying behaviour of its corporate customers in the services sectorand of public authorities and government bodies.EBITDA fell from EUR 25.0 to 21.9 million and the EBITDA margin was9.7 (10.7) percent. Central's higher operational profitability had aslightly positive effect on the division's margin. DisregardingCentral, K + K America had an EBITDA margin of 9.3 percent.2009 turnover likely to be at lower end of target corridor -operational profitability will be above 9.0 percentAfter the first three quarters of the current financial year, theManagement Board is expecting the organic drop in turnover to be atthe lower end of the target corridor of minus 20 to 25 percent.However, an organic turnover decline of slightly more than 25 percentcan not be ruled out. Nevertheless, with organic turnover decline ofmore than 25 percent, the EBITDA margin before special effectsrelating to FOCUS measures will be at 9.0 percent plus x.Conference callWe invite you to directly address the Management Board with yourquestions. We will be hosting a conference call for this purpose at15:00 (CET) on 29 October 2009, during which we will be open toquestions. To take part, please dial the following number: +49 7119659-9628 (access code: 779134#).IFRS figures for the TAKKT Group at the end of Q3 2009in EUR million Change Change Q3 2009 Q3 2008 in % Q1-3 2009 Q1-3 2008 in %TAKKT Group 186.6 230.0 -18.9 544.9 703.2 -22.5turnoverOrganic growth -26.3 -28.4 KAISER + KRAFT 86.4 124.9 -30.8 276.0 408.1 -32.4 EUROPA Topdeq 13.9 20.2 -31.2 43.3 62.6 -30.8 K + K America 86.4 85.2 1.4 226.0 233.1 -3.0 (?) K + K America 122.4 128.1 -4.4 308.2 354.3 -13.0 ($)EBITDA 15.7 31.9 -50.8 55.2 108.2 -49.0EBITDA margin 8.4 13.9 10.1 15.4EBIT 10.5 27.9 -62.4 41.0 96.7 -57.6EBIT margin 5.6 12.1 7.5 13.8Profit before tax 8.4 26.2 -67.9 35.9 92.1 -61.0Profit before tax 4.5 11.4 6.6 13.1marginCash flow 11.1 22.7 -51.1 40.7 78.0 -47.8Cash flow margin 5.9 9.9 7.5 11.1In order to make a valid comparison with the prior year, the figuresfor 2008 were amended in accordance with the new IFRS standardsregarding catalogue accounting introduced on 01 January 2009.Short profile of TAKKT AGTAKKT is the leading B2B mail order specialist for business equipmentin Europe and North America. The Group is represented with its brandsin more than 25 countries. The product range of the TAKKTsubsidiaries comprises over 160,000 items from the areas business andwarehouse equipment, classical and design-oriented office furnitureand accessories, as well as sales promotion items for retailers, thefood service industry and the hotel market.The TAKKT Group employs some 2,000 staff, has 3 million customersworldwide and distributes more than 60 million catalogues andmailings per year.TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse'sPrime Standard on 01 January 2003.Contact:Dr Felix A. Zimmermann, CEOTel. +49 711 3465-8201Dr Florian Funck, CFOTel. +49 711 3465-8207Email: investor(at)takkt.dehttp://hugin.info/131631/R/1350986/326280.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 29.10.2009 - 07:30 Uhr
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