DGAP-News: TAKKT AG / Key word(s): Interim Report/Quarter Results
TAKKT Group benefits from regional diversification despite weak
European economy
30.10.2012 / 07:30
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P R E S S R E L E A S E
TAKKT Group benefits from regional diversification despite weak European
economy
Acquisitions enable growth course to continue
Significant events in the first nine months of 2012
- US business as well as acquisitions there and in Germany enable further
growth despite economic weakness in Europe
- 9.8 percent increase in turnover in the reporting currency euro,
acquisition and currency-adjusted decline in turnover of 1.8 percent
- EBITDA margin almost unchanged at 15.5 (2011: 15.6) percent,
acquisition-adjusted 15.2 percent
- Earnings per share rise to EUR 0.86 (0.82)
Stuttgart, Germany, 30 October 2012. TAKKT Group benefited from the
regional diversification of its business activities and its acquisition
strategy in the first nine months of 2012. TAKKT Group achieved a 9.8
percent increase in its consolidated turnover to EUR 695.4 (633.6) million
in the first three quarters of 2012. Adjusted for acquisition and currency
effects, consolidated turnover fell by 1.8 percent due to a lower number of
orders. 'The Group's performance is therefore in line with our
expectations', said CEO Dr Felix A. Zimmermann. 'We particularly
anticipated an economic slowdown in Europe. As expected, we recorded an
organic decrease in turnover in the third quarter.'
The gross profit margin remained stable at 43.2 (43.2) percent in the first
nine months of 2012, on account of the acquisitions. Excluding these two
purchases, it fell to 42.6 percent. This is mainly attributable to the
regional shift in the share of turnover between North America and Europe.
In line with the gross profit margin, operational profitability - adjusted
for acquisitions - also declined slightly. In the first nine months of the
financial year, the absolute EBITDA (earnings before interest, taxes,
depreciation and amortisation), adjusted for acquisitions, fell to EUR 98.8
(99.1) million and the EBITDA margin to 15.2 (15.6) percent. Including the
earnings contributions provided by the acquisitions GPA (since 01 April
2012) and Ratioform (since 01 July 2012), absolute EBITDA amounted to EUR
108.1 million and the EBITDA margin to 15.5 percent. The TAKKT cash flow -
defined as the profit for the period plus depreciation, goodwill impairment
and deferred tax affecting profit - amounted to EUR 77.4 (70.9) million in
the first nine months of 2012, thereby remaining at a high level. This
corresponds to a cash flow margin of 11.1 (11.2) percent and a TAKKT cash
flow per share of EUR 1.18 (1.08).
TAKKT EUROPE benefits from Ratioform acquisition
The difficult economic environment already evident in the first half of the
year for the TAKKT EUROPE division continued to deteriorate in the third
quarter as expected and led to a further decline in turnover. All in all,
TAKKT EUROPE generated turnover of EUR 372.0 (372.8) million in the first
nine months of 2012 - a decrease of 0.2 percent. This means that TAKKT
EUROPE accounted for 53.5 (58.8) percent of consolidated turnover. In
organic terms - i.e. adjusted for currency and acquisition effects -
turnover decreased by 6.1 percent. The main reason was a lower number of
orders. The average order value was on previous year's level.
Despite the drop in turnover, TAKKT EUROPE's operating result remained at a
high level in the first nine months of the year. The division generated
EBITDA of EUR 74.9 million, resulting in an EBITDA margin of 20.1 percent.
Excluding the acquisition of Ratioform, the EBITDA amounted to EUR 70.5
(77.6) million and the EBITDA margin to 20.0 (20.8) percent.
TAKKT AMERICA records significant increase in turnover and earnings
The TAKKT AMERICA division increased turnover in the first nine months of
the year to EUR 323.6 (261.0) million. This corresponds to growth of 24.0
percent. The division contributed 46.5 (41.2) percent to consolidated
turnover. Adjusted for currency effects, this growth amounted to 13.3
percent. Further adjusted for the acquisition of GPA, the division achieved
organic growth of 4.6 percent compared to the same period in the previous
year. Adjusted for the acquisitions, the average order value in US dollars
was significantly higher, while order numbers remained on previous year's
level.
In the period under review, TAKKT AMERICA generated EBITDA of EUR 40.0
million. This resulted in an EBITDA margin of 12.4 percent. Excluding the
acquisition of GPA, in the first nine months of 2012 the EBITDA margin was
11.8 (11.0) percent and the absolute EBITDA amounted to EUR 35.1 (28.7)
million. Better utilisation of the direct marketing infrastructure had a
positive effect on earnings. By contrast, anticipated start-up losses at
the European Hubert companies, as well as at IndustrialSupplies.com and
cateringplanet.com had a negative impact on earnings.
TAKKT Group spurs growth through acquisitions
With effect from 01 July 2012, Ratioform Holding GmbH was acquired for a
purchase price of EUR 211.7 million, free from financial debt. The
Ratioform group, consisting of six legal entities, is managed since as an
independent third group within the TAKKT EUROPE division, the Packaging
Solutions Group (PSG). 'With this acquisition, we are sustainably
diversifying TAKKT Group's portfolio and we are doing this in an extremely
attractive growth segment of B2B direct marketing. A key growth driver
behind the rising demand for transport packaging is the increasing
importance of online trading, which offers Ratioform excellent prospects
for development', commented CFO Dr Claude Tomaszewski.
Ratioform is the leading B2B direct marketing group for transport packaging
in Germany, where around 75 percent of its turnover is generated. It also
operates in five other European countries. Its product range is sold to B2B
customers from various different sectors using the multi-channel approach.
In 2011, the Ratioform Group generated pro forma turnover of EUR 83 million
and a pro forma EBITDA of EUR 22.6 million.
TAKKT successfully places debut Schuldschein loan
Through the payment made on 19 October 2012, TAKKT AG has successfully
issued a Schuldschein bonded loan with a volume of EUR 140 million. The
debut transaction assures refinancing of an acquisition facility which the
multi-channel direct marketing group headquartered in Stuttgart, Germany,
had borrowed at short notice for the acquisition of Ratioform group,
completed as per 01 July 2012. With this transaction TAKKT AG is expanding
its investor scope and debt financing instruments as well.
The financing offering attracted wide interest of investors and the order
book was noticeably oversubscribed. Maturity periods of three and five
years with fixed and variable interest rates were offered. Due to the keen
demand, the original volume of EUR 75 million was able to be increased to
EUR 140 million and interest conditions could be fixed at the lower end of
the marketing spread.
'The strong demand from institutional investors is a sign of confidence in
the sustainable cash flow strength and the attractive business model of
TAKKT AG even in times of the financial and sovereign debt crisis,' says
Tomaszewski. 'With this Schuldschein loan we are taking early action to
improve the maturity structure of our borrowings and solidify our long-term
financing within a historically favourable interest-rate environment.'
This successful transaction was supported by Bayerische Landesbank and
Landesbank Baden-Wuerttemberg.
Outlook - economic indicators still advise caution, particularly in Europe
In light of still weak early indicators for economic developments in Europe
and North America, the TAKKT Management Board has determined its turnover
and earnings forecasts for the current financial year. The more cautious of
the three scenarios outlined at the start of the year is still considered
the most likely to occur. The Management Board therefore anticipates a
slight organic decline in consolidated turnover. 'The economic indicators
still advise caution, particularly in Europe. For North America on the
other hand, we remain moderately optimistic. Together with our
acquisitions, we are on a positive path', said Zimmermann. Including the
two acquisitions and based on current economic data, the Management Board
expects currency-adjusted turnover growth of between six and eight percent
and an EBITDA margin between 13 and 14 percent.
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 (CET) on 30
October 2012, 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 for the first nine months of 2012
(in EUR million)
<pre>
Change in 9M Change in
Q3 2012 Q3 2011 % 9M 2012 2011 %
TAKKT Group turnover 251.9 216.0 16.6 695.4 633.6 9.8
Organic growth -4.5 -1.8
TAKKT EUROPE 126.6 118.3 7.0 372.0 372.8 -0.2
TAKKT AMERICA 125.4 97.8 28.2 323.6 261.0 24.0
EBITDA 38.4 31.3 22.7 108.1 99.1 9.1
EBITDA margin 15.2 14.5 15.5 15.6
EBIT 31.4 27.3 15.0 92.6 86.7 6.8
EBIT margin 12.5 12.6 13.3 13.7
Profit before tax 28.3 24.6 15.0 85.9 80.4 6.8
Pre-tax profit margin 11.2 11.4 12.4 12.7
TAKKT cash flow 26.6 21.5 23.7 77.4 70.9 9.2
TAKKT cash flow margin 10.6 10.0 11.1 11.2
</pre>
Company calendar
TAKKT will publish the preliminary figures for the financial year 2012 on
19 February 2013.
Short profile of TAKKT AG
TAKKT is the leading multi-channel direct marketing group 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 180,000 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 2,000 staff, has over three million customers
worldwide and distributes more than 45 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 Claude Tomaszewski, CFO Tel. +49 711 3465-8207
Email: investor@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@takkt.de
Internet: www.takkt.de
ISIN: DE0007446007
WKN: 744600
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, München
End of News DGAP News-Service
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190678 30.10.2012
DGAP-News: TAKKT Group benefits from regional diversification despite weak European economy
| Source: EQS Group AG