TAKKT releases preliminary Q2 earnings and adjusts sales and earnings forecast for 2024

TAKKT releases preliminary Q2 earnings and adjusts sales and earnings forecast for 2024


Stuttgart, Germany, July 19, 2024. With economic conditions remaining persistently difficult, customer demand in the second quarter remained similarly subdued as at the beginning of the year. Adjusted for currency effects and based on preliminary figures, sales declined by 19.0 percent. Overall, TAKKT generated sales of EUR 260.4 (319.4) million in the second quarter. The Group continues to work on strengthening its own resilience by improving the gross profit margin, implementing leaner cost structures and increasing free cash flow. EBITDA amounted to EUR 13.2 (26.8) million and was burdened by one-off expenses of EUR 4.1 (1.8) million; the adjusted EBITDA margin was 6.6 (9.0) percent.

While the organic sales performance of the Industrial & Packaging and Office Furniture & Displays divisions in the second quarter remained very similar to the first quarter, the FoodService division saw a significant slowdown from minus 20.2 percent to minus 27.8 percent. This development is due to slower processes in sales and in order processing as a result of the integration of systems from the Hubert and Central brands. There was also a significant decline in project business. TAKKT is working hard to increase efficiency again. However, this is taking up time and resources that are not available to approach customers and for sales activities.

Order intake in July has so far shown a comparable development to the second quarter. TAKKT anticipates a gradual slight improvement in growth rates in the second half of the year. However, the existing challenges in the FoodService division are also likely to have a negative impact on business development in the second half-year. Together with the only hesitant recovery of economic conditions in Europe, this resulted in an adjustment of the forecast. For the full year 2024, TAKKT now expects organic sales growth in the range of minus 12 to minus 17 percent (previously: negative organic sales growth in the high single-digit to low double-digit percentage range). The weak sales development has an impact on the expected profitability. The EBITDA margin adjusted for one-time expenses is expected to be between 7.3 and 8.3 percent (previously: 8.0 to 9.5 percent). One-time expenses are expected to remain unchanged at up to EUR 15 million. By continuing its successful measures to strengthen free cash flow, the Group will further reduce net working capital. TAKKT therefore continues to expect a good free cash flow in the current year, which will decline significantly less than reported EBITDA compared to the previous year.

The current very weak sales and earnings development in the FoodService division may have an impact on its valuation as part of an impairment test. Together with potential changes in the valuation parameters, this leads to an increased risk of impairment.


TAKKT will publish the half-year report 2024 on July 25.