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

TAKKT’s Q3 ‘23 results were tepid as announced previously. Sales declined 11% yoy and EBITDA fell 20% yoy, with the EBITDA margin weakening 1.1ppt yoy despite a 70bps yoy improvement in the gross margin. The top line was impacted by reduced order intake in the European Industrial & Packaging and the American Office Furniture & Displays divisions, exacerbated by deteriorating consumer sentiment and geopolitical uncertainties. The possible US government shutdown is expected to further impact demand. TAKKT has reiterated its recently cut guidance for ‘23, expecting a mid-single-digit organic sales decline and an EBITDA of EUR 107-117m. That said, in light of the current challenges, TAKKT is placing greater emphasis on strengthening its profitability and continues to expect a significantly higher FCF in ‘23 than in ‘22, which once again underlines the strength of the company’s business model. AlsterResearch’s PT of EUR 15.00 still justifies a BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Vossloh reported a good set of results in Q3, with sales and EBIT coming in line with its prelims, although sales and order momentum slowed, as expected, vs a strong Q2. The company recorded healthy order intake of EUR 257m in Q3 (-5% yoy), benefitting from a framework agreement in Germany, a major rail fastening system order from China, and expansion of market share in Denmark’s switch market. Cash flow situation also improved in 9M on the back of healthy operating performance and better w/c management. Vossloh has confirmed its recently upgraded FY23 guidance, where it had raised its sales forecast by 3% and EBIT guidance by 7% at the mid-point; this still points to a deceleration/decline in Q4 owing to a tough comparable base. Overall Q3 results were satisfactory and show again that Vossloh is in the sweet spot of a structurally growing market. AlsterResearch’s analysts reiterate to BUY with an unchanged PT of EUR 52.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Vossloh%20AG

TAKKT released a profit warning alongside weak Q3 ’23 results. Sales dropped by nearly 11% yoy to EUR 313m, with EBITDA falling by even 20% yoy to EUR 30.2m. This decline was primarily due to reduced order intake in the European Industrial & Packaging and American Office Furniture & Displays divisions, exacerbated by deteriorating consumer sentiment and geopolitical uncertainties. The pending U.S. government shutdown is expected to further impact demand. Consequently, TAKKT has adjusted its FY23 outlook, expecting mid-single-digit organic sales decline and an EBITDA of EUR 107- 117m. Long-term goals are also under review, no longer adhering to the original target of EUR 2bn in sales by 2025. Instead, the company aims to emphasize profitability and cash flow. Despite these challenges, TAKKT remains robust, with adjusted estimates and a new price target of EUR 15.00, justifying AlsterResearch’s BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG