Continued sales stabilization despite challenging environment
 

• Organic sales development improves to minus 7.6 percent in the first quarter after minus 11.5 percent in the fourth quarter of 2024
• Adjusted EBITDA margin at 4.9 (7.4) percent, impacted by lower gross profit margin
• TAKKT counters higher US tariffs with extensive measures and expects higher volatility in the economic conditions
• Confirmation of the forecast for sales, earnings and cash flow

Stuttgart, Germany, April 29, 2025. TAKKT generated sales of EUR 251.5 (269.0) million in the first quarter, 6.5 percent lower than in the previous year. Adjusted for currency effects and the sale of MyDisplays, the organic growth rate was minus 7.6 percent and thus better than in the final quarter of 2024. In the first quarter, the Group continued the stabilization observed since mid-2024 and recorded a smaller decline in sales than in the previous quarter. As expected, the organic growth rate in all three divisions remained in negative territory. Despite the challenging economic environment, TAKKT's core business in the European Industrial & Packaging (I&P) division was able to further stabilize its growth rate. In the US, the FoodService division (FS) improved significantly compared to the weak previous quarter, while the very restrained demand from government customers had a negative impact on the Office Furniture & Displays division (OF&D). "We have addressed the internal issues from last year and are now consistently implementing our "TAKKT Forward" strategy. Despite difficult conditions, we are seeing an improvement in our business in the first quarter thanks to the measures we have introduced. At the same time, the intensification of the trade conflict is leading to greater uncertainty among our customers, which has had an impact on ordering behavior in recent weeks," says CEO Andreas Weishaar.

As expected, the gross profit margin was 39.8 (41.2) percent and was impacted by negative effects from incoming and outgoing freight, which mainly affected the US divisions. Due to the improvements to the cost structure implemented in 2024, expenses for marketing and personnel as well as other costs were lower than in the previous year. One-time costs amounted to EUR 1.2 (3.0) million, while the adjusted EBITDA margin reached 4.9 (7.4) percent. In addition to cost management, TAKKT is continuing to work on the structural improvement of cash generation and expects this to make a noticeable positive contribution to cash flow over the course of the year. In the first quarter, the Group invested in building up inventories, which will be sold off in the coming months, in order to secure its ability to deliver and to fulfill longer-term project orders. In contrast, in the previous year the Group had realized very high cash inflows from changes in inventories and trade payables in the first quarter. Together with the lower EBITDA, this led to a decline in free cash flow to minus EUR 5.0 (plus 21.3) million.

TAKKT is systematically implementing the strategy presented at the end of March, which aims to focus the portfolio, strengthen growth through a clear alignment with the needs of medium-sized and large customers, and improve profitability and cash flow performance. “In the first quarter, we were able to conclude framework agreements with important customers. We are also continuing our programs to improve profitability and cash generation and are intensifying the associated measures. This includes streamlining our structure, simplifying our product range, and increasing our process and system efficiency,” says CEO Andreas Weishaar.

In its guidance published at the end of March, the Group assumed that economic conditions would remain difficult. However, the level and impact of the import tariffs imposed by the US were not foreseeable and remain highly volatile. The TAKKT divisions source the majority of the products they sell from their respective home markets. In the US, imports accounted for around a quarter of the purchasing volume in 2024, with around two-thirds of these imports coming from China. “We have responded to the higher import tariffs in the US with a broad range of measures. This includes successful renegotiations with our suppliers, who are compensating for part of the tariffs by reducing purchase prices, as well as price adjustments for affected products and the development of alternative sources of supply. Due to the escalation of the trade conflict, we have also decided to suspend some of our deliveries from China to the US until further notice,” says CEO Weishaar. In addition to the effects on products imported by TAKKT, higher purchase prices are also to be expected in some cases for locally sourced products if raw materials or intermediate products are imported from suppliers. The Group's fundamental goal is to pass on higher product costs to customers through price adjustments. TAKKT has prepared various scenarios for the further development of the trade dispute and will implement these depending on future circumstances.

Despite the increased uncertainty, TAKKT confirms its guidance for 2025 and continues to expect organic growth and the adjusted EBITDA margin to improve over the course of the year. For the full year, the Group anticipates organic growth of between minus four and plus six percent and an adjusted EBITDA margin of between six and eight percent. “Our guidance is based on the expectation that a solution will be found in the trade dispute between the US and China and other countries in the coming weeks that will lead to lower tariffs. In addition to the direct impact on prices and ordering behavior, the tariffs and increased uncertainty may lead to a slowdown in the economy and a decline in our US and European customers' willingness to invest,” said CFO Lars Bolscho. In March and April, order behavior was slightly below original expectations. This is likely to limit further improvement in organic growth in the second quarter. TAKKT is therefore intensifying its cost management measures in the current environment and expects this to have a positive impact on profitability in the coming quarters. Thanks to the sale of inventories and the improvement in the cash conversion cycle, the Group also expects to generate a positive free cash flow from the second quarter onwards.

 

 

Earnings Call: April 29, 2025 at 2pm (CET)
To participate in the Earnings Call, please register in advance at the following link: Registration Earnings Call

 

 

Financial calendar
TAKKT will publish the half-year report on July 29, 2025.

 

 

IFRS figures for the TAKKT Group as of the end of the first quarter 2025
(in EUR million)

	Q1/2024	Q1/2025	in %
TAKKT Group sales	269.0	251.5	-6.5
organic growth			-7.6
Industrial & Packaging	154.7	146.6	-5.3
organic growth			-5.7
Office Furniture & Displays	60.3	52.8	-12.3
organic growth			-13.7
FoodService	54.0	52.1	-3.7
organic growth			-6.2
Gross profit margin (%)	41.2	39.8
EBITDA	16.8	11.2	-33.4
EBITDA margin (%)	6.2	4.4
Adjsuted EBITDA margin (%)	7.4	4.9
EBIT	8.5	3.6	-57.6
EBIT margin (%)	3.2	1.4
Earnings per share in EUR	0.08	0.02	-75.0
Free cash flow	21.3	-5.0

 

 

 

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 20 countries with its Industrial & Packaging, Office Furniture & Displays and FoodService divisions. The product range of the subsidiaries comprises more than 400,000 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. The company is represented in the Prime Standard of the German Stock Exchange.

 

 

Contact
Benjamin Bühler    

phone +49 711 3465-8223
Email: investor@takkt.de