EQS-Adhoc: TAKKT AG: Despite improvements in the third quarter, TAKKT expects lower profitability in the final quarter and adjusts guidance for 2024

Despite improvements in the third quarter, TAKKT expects lower profitability in the final quarter and adjusts guidance for 2024

Based on preliminary figures, TAKKT noticeably improved its organic growth and adjusted EBITDA margin in the third quarter compared to the previous quarter. The organic growth rate was minus 14.1 percent after minus 19.0 percent in the second quarter. The Group generated quarterly sales of EUR 269.0 (313.4) million and an EBITDA of EUR 20.5 (30.2) million. Adjusted for one-time expenses, the EBITDA margin was 9.0 (9.7) percent. In addition to internal improvements and cost savings, positive effects also contributed to the higher profitability compared to the previous quarter. These are not expected to be repeated in the fourth quarter. Among other things, TAKKT benefited from the targeted reduction of the order backlog and lower expenses for variable compensation. In the first nine months, the Group achieved an organic growth rate of minus 16.5 percent and an adjusted EBITDA margin of 7.7 (9.4) percent.

Since September, the seasonal upturn in order intake across the Group has been significantly lower than in previous years. In addition to the persistently difficult market environment, the continued impact of internal challenges also plays a significant role. For the fourth quarter, the Group expects a similar growth rate as in the year to date. For the full year, the organic growth rate is expected to be in the range between minus 15 and minus 17 percent (previously: minus 12 to minus 17 percent).

TAKKT focuses on keeping the right balance between cost management and strengthening cash flow on the one hand and investing in growth as well as in systems and processes on the other. The ongoing weak sales development and the intentional decision to refrain from purely short-term oriented measures to boost earnings will have a negative impact on profitability in the final quarter. For 2024, TAKKT expects an adjusted EBITDA margin between 6.3 and 7.1 percent (previously: 7.3 to 8.3 percent). One-time expenses are expected to be higher than anticipated at the beginning of the year and are now expected to be between EUR 15 and 20 million (previously: EUR 10 to 15 million) due to the increased need for structural adjustments. Based on the further reduction of net working capital, the Group continues to expect free cash flow to develop much more stable than reported EBITDA.
TAKKT will publish the quarterly statement for the first nine months of 2024 on October 24.

Contact:
Benjamin Bühler
Head of Investor Relations
Presselstr. 12
70191 Stuttgart
+49 711 3465 8223