EQS-News

TAKKT AG: TAKKT strengthens resilience in the first quarter

EQS-News: TAKKT AG / Key word(s): Quarterly / Interim Statement TAKKT AG: TAKKT strengthens resilience in the first quarter 25.04.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. TAKKT STRENGTHENS RESILIENCE IN THE FIRST QUARTER

• Free cash flow increases to EUR 21.3 (14.5) million
• Gross profit margin improved to 41.2 (40.0) percent
• Organic sales growth of minus 16.5 percent
• Adjusted EBITDA margin at 7.4 percent, implementation of structural cost reductions

Stuttgart, Germany, April 25, 2024. TAKKT continues to work intensively on strengthening its resilience in a persistently challenging environment. In the first quarter, the Group achieved good results in optimizing cash generation, strengthening the gross profit margin, and making structural cost adjustments. Demand in the first quarter of the new year was characterized by continued weak conditions in the markets relevant to TAKKT. "In discussions with our B2B customers, we continue to see a great deal of restraint and uncertainty. Many companies are reducing their costs, investments, and staff. We expected a difficult start to the new year. This has been confirmed," says CEO Maria Zesch. Sales reached EUR 269.0 (321.8) million. Organic sales growth amounted to minus 16.5 percent. It was impacted by three percentage points due to the discontinuation of the Certeo business in the previous year and negative working day effects. While the I&P and OF&D divisions performed at a comparable level to the final quarter of 2023, the FoodService business saw a much sharper decline. In addition to a persistently weak market environment, temporary effects out of the harmonization of ERP systems and significantly lower project business contributed as well.

All three divisions improved their gross profit margin in the first quarter. For the Group, this signified an increase to 41.2 (40.0) percent, which was due to lower costs for inward freight and improved purchasing conditions. "With our business model we are in a resilient position, especially in times of crisis. In addition to the high gross profit margin, strict cost management also contributes to this. In the first quarter, we intensified the adjustment of our personnel structure by consistently adapting the number of employees to the lower demand. The resulting savings will significantly reduce our personnel costs in the coming months," says CFO Lars Bolscho. In the first quarter, the resulting one-time expenses had a negative impact on reported earnings. EBITDA amounted to EUR 16.8 (30.2) million and was impacted by one-time expenses amounting to EUR 3.0 (0.6) million. The adjusted EBITDA margin was at 7.4 (9.6) percent.