TAKKT reported detailed Q2 2024 results that were in line with its weak preliminary release. Burdened by persistent macroeconomic challenges and issues at its FoodService (FS) business relating to integration of the Hubert and Central brands, revenues declined 19% yoy and the adjusted EBITDA margin narrowed by 2.4ppt yoy to 6.6%. Although sales declined in all divisions, FS experienced the most significant decline (-28% yoy). Consequently, management lowered its FY 2024 guidance at the time of prelims, which now was confirmed, expecting organic revenues to decline 12%-17% and the adjusted EBITDA margin to be c. 7.3%-8.3%. Given the dull guidance for 2024, the ongoing macroeconomic headwinds, and the specific challenges in the FS division, we remain cautious on TAKKT. The analysts of mwb research maintain their PT at EUR 11.00 and confirm their HOLD rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

TAKKT AG's preliminary Q2 2024 results highlight persistent macroeconomic challenges, with a 19.0% yoy decline in turnover to EUR 260m. The adjusted EBITDA margin fell to 6.6% from 9.0% in the previous year, burdened by EUR 4.1m in one-off expenses. While the Industrial & Packaging and Office Furniture & Displays divisions maintained stable performance, the FoodService division saw a significant decline, with sales dropping 28% due to integration challenges with the Hubert and Central brands. Consequently, now expecting organic revenue growth to decline by 12-17% and the adjusted EBITDA margin to be 7.3-8.3%. The potential for impairment in the FoodService division remains a key risk in the view of mwb research’s analysts. The experts maintain their HOLD rating with new PT of EUR 11.00 (previously EUR 13.00). The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

TAKKT got off to a difficult start in Q1, with organic sales declining by 16.4% yoy to EUR 269m, the lowest level in almost three years. This was exacerbated by market weakness and negative effects such as the early Easter holiday. While sales declined in all divisions, gross margins improved across the board to 41.2%, providing resilience. Despite one-off expenses leading to a lower EBITDA of EUR 16.8m (compared to EUR 30.2m in Q1 23), TAKKT's free cash flow increased to EUR 21.3m, indicating a strong financial position. Looking ahead, TAKKT expects a gradual recovery of demand in the course of FY24 and maintains its adjusted EBITDA margin guidance of 8-9.5%. mwb research analyst’s continue to recommend to HOLD with an unchanged PT of EUR 13.00 as the analysts are waiting for signs of improving demand. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

TAKKT's final FY23 results closely align with earlier preliminary figures, with full-year revenues and EBITDA meeting guidance and free cash flow rising by 31% year-on-year. However, Q4 saw a 13% revenue decline to EUR 285m, attributed to an 11.3% organic drop and currency fluctuations amid subdued consumer demand. For FY23, TAKKT proposes dividends of EUR 0.60 regular and EUR 0.40 special per share, in line with estimates. Amid a sluggish economic environment, FY24 forecasts anticipate organic turnover to decrease, with adjusted EBITDA margins expected at 8.0-9.5%. Cost reductions, though initially impacting earnings, aim to restore growth by 2025. Considering challenges ahead, mwb research downgrades TAKKT to HOLD from BUY, triggered by lower earnings estimates and a reduced price target of EUR 13.00 (former EUR 15.00). The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

TAKKT released prelim. Q4 ‘23 results. Revenues declined at a steeper 11% yoy in Q4 on an organic basis amid the challenging operating environment. However, the gross margin improved by 170bps yoy to 39.9% and the EBITDA margin widened by 40bps yoy to 8.6%, supported by the company’s various cost-management initiatives. Overall, full-year revenues and EBITDA were in line with guidance and free cash flow grew 31% yoy. Management expects ‘24 to remain challenging, due to stagnation and negative sentiment in Europe and the US, indicating that top line recovery could be gradual with meaningful recovery only in H2, in the view of AlsterResearch. Given the company’s cash-generative business model and comfortable equity ratio of 63.8%, management is now looking to actively pursue M&A activities that should help accelerate growth momentum. AlsterResearch’s analysts maintain their PT at EUR 15.00 and confirm their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG