DGAP-News: TAKKT AG: Strong sales and earnings growth in the first quarter of 2022

Strong sales and earnings growth in the first quarter of 2022

• Organic sales growth increased to 18.9 percent in the first quarter
• EBITDA rose to EUR 32.7 (26.5) million
• TAKKT cash flow at EUR 28.9 (22.4) million
• Growth and earnings forecast for the full year confirmed

Stuttgart, Germany, April 28, 2022. TAKKT made a very successful start to the new year. This applies to both sales and earnings development and to the implementation of the new strategy with its three pillars: Growth, OneTakkt and Caring. "The environment was characterized by the war in Ukraine, ongoing supply chain issues and high Inflation rates. Despite this, we delivered an excellent performance across all activities and increased our pace of growth," comments CEO Maria Zesch on the first quarter. After adjustments to reflect currency effects, sales were 18.9 percent above the first quarter of 2021, which was impacted by the consequences of the coronavirus pandemic. All three TAKKT divisions reported growth rates in the double-digit percentage range. Thanks to the recovery in the foodservice and display business, activities in the US grew at a particularly fast rate. Managing supply chains remained a challenge. The Group's reported sales benefited from positive currency effects and increased by 23.3 percent to EUR 328.4 (266.4) million.

Inflation management is currently one of the most important tasks for the Group. "We made extensive price adjustments and passed on the increased purchasing prices to customers. As far as freight costs are concerned, however, the high energy prices and the high container freight utilization had temporary negative effects on the gross profit margin, which we have not yet been able to pass on in full," explains CFO Claude Tomaszewski. The gross profit margin decreased to 39.7 (41.0) percent. The Group achieved significantly higher earnings in the first three months than in the previous year. EBITDA rose by 23.8 percent to EUR 32.7 (26.5) million. It was impacted by one-time expenses in the amount of almost EUR 2 million. TAKKT compensated for the decline in the gross profit margin with lower personnel and marketing cost ratios as a result of the strong growth. The Group's EBITDA margin remained almost unchanged at 10.0 (9.9) percent. As a result of the positive business development, TAKKT's cash flow was significantly over the previous-year figure at EUR 28.9 (22.4) million.

The Russian attack on Ukraine prompted the Group to terminate all activities in Russia. The war did not have any marked impact on customer demand behavior in the first quarter. At the same time, the conflict is exacerbating the availability problems with certain products and pushing inflation up, especially through higher energy prices.

TAKKT made a strong start to the new year, significantly improving sales and earnings in all three divisions. The ongoing uncertainties caused by the war in Ukraine and difficulties in supply chains may impact growth in the coming months. "Overall, we are confirming our guidance. For the full year, we continue to expect high single-digit percentage organic sales growth," says Maria Zesch. The Group is aiming to use systematic inflation management to keep the gross profit margin stable at around 40 percent in 2022. EBITDA is expected to reach between EUR 110 and 130 million.
Earnings call: April 28, 2022, at 2:00 p.m. (CEST).

The earnings call will be held as a conference call today at 2:00 p.m. To participate, please register under the following link: www.takkt.de/event

Financial calendar

TAKKT will publish figures for the first half of the year on July 28, 2022.
IFRS figures for the TAKKT Group as of the end of the first quarter 2022
(in EUR million)

About TAKKT AG
TAKKT AG is the leading omnichannel distributor for business equipment in Europe and North America. The Group is represented in more than 25 countries with its Industrial & Packaging, Office Furniture & Displays and FoodService divisions. The product range of the subsidiaries comprises more than 600,000 products for the areas of plant and warehouse equipment, office furniture, transport packaging, display articles and equipment for the food service industry, hotel market and retailers.

Contacts:
Michael Loch phone +49 711 3465-8222
Benjamin Bühler phone +49 711 3465-8223
Email: investor@takkt.de