TAKKT AG: TAKKT streamlines I&P organizational structure and strengthens measures to safeguard profits

TAKKT streamlines I&P organizational structure and strengthens measures to safeguard profits
 

• Further stabilization of sales development despite volatile market environment
• Profitability impacted by gross profit margin and sales development
• Intensified execution of measures to improve earnings and cash flow in the second half of the year

Stuttgart, Germany, July 29, 2025. The high level of economic uncertainty and the tariff disputes are having a negative impact on the demand for business equipment from corporate customers at TAKKT. In the second quarter, the Group's organic growth rate was minus 5.7 percent. The improvement of just under two percentage points compared with the previous quarter was mainly due to the FoodService (FS) business, which achieved slightly positive organic growth. Sales development in the Industrial & Packaging (I&P) division remained unchanged compared with the previous quarter, while the Office Furniture & Displays (OF&D) division improved slightly. “In the current environment many customers are adopting a wait-and-see approach due to the tariff disputes and are holding back on placing larger orders in particular. This is affecting our order development and is in line with what we are seeing in the market and from our competitors,” says CEO Andreas Weishaar.

In the first half of the year, TAKKT generated sales of EUR 491.7 (529.4) million, 7.1 percent less than in the previous year. Adjusted for the sale of MyDisplays, the organic growth rate was minus 6.7 percent. Currency effects were neutral. Organic sales growth of minus 5.7 percent at I&P and minus 2.8 percent at FS was in the negative mid to low single-digit percentage range. In the OF&D division, the decline was still in double digits at minus 12.6 percent. While the display business remained slightly below the previous year's level, sales of office equipment in the US were impacted by restrictive spending by government customers, among other factors.

As expected, effects from freight charges, partly as a result of US import tariffs, had a negative impact on the gross profit margin. It reached 39.5 (40.5) percent in the first half of the year. With sales declining, the Group reduced its costs. TAKKT was able to achieve total savings of around EUR seven million in marketing, personnel, and other costs. In the previous year, the Group benefited from income from the reversal of provisions and lower expenses for variable remuneration in its personnel costs. Without this effect, the savings would have been almost EUR three million higher. Lower one-time expenses of EUR 4.0 (7.3) million had a positive impact on costs in the reporting year. EBITDA amounted to EUR 16.9 (29.9) million, with an EBITDA margin of 3.4 (5.7) percent. Adjusted for one-time expenses, the EBITDA margin reached 4.3 (7.0) percent.

In response to the introduction of import tariffs, TAKKT stopped imports from China to the US in April, among other measures. Following the agreement between the two trading partners and the reduction in tariffs, the Group has resumed ordering on a larger scale. The build-up of inventories resulted in a cash outflow of EUR 3.9 million in the first half of the year. Together with significantly lower customer down payments due to weak project business, this led to free cash flow of EUR minus 9.3 (plus 25.6) million.

The Group worked consistently on implementing the TAKKT Forward Strategy in the first half of the year. Against the challenging economic conditions, priority was given to implementing performance measures to optimize cost structures and increase cash flow. “In our important core business I&P, we are implementing a new operating model including a shared service center, which will enable us to work in a more customer-focused, digital, flexible, and efficient manner in the future. This is made possible by the build-up of new capabilities, for example in the areas of automation and AI applications, and by the transfer of functions to our TAKKT Competence Center in Hungary. This will allow us to focus our core business on the tasks that create real added value for our customers. We are outsourcing more transactional and recurring activities to an external partner,” said Weishaar. Full implementation of the new operating model is expected to take around a year and will have a noticeable positive impact on the division's profitability. As a result of the changes now initiated, one-time expenses in the current year will be higher than originally expected. They could therefore amount to a similar or slightly higher figure than the one-time expenses of EUR 17.1 million in the previous year.

In addition to implementing the new operating model, TAKKT is adjusting relevant cost items to the lower demand in the current environment and working on additional structural improvements. This includes cost savings in purchasing and through a more focused product range, optimized warehouse and logistics operations, and greater efficiency in marketing and other costs. Through the performance measures it has initiated and identified, TAKKT aims to significantly streamline its cost base and achieve annual savings of at least EUR 30 million in the medium term.

Due to the persistently high level of uncertainty and the continuing challenging economic environment, TAKKT no longer expects a significant improvement in organic sales development in the second half of the year. The Group has therefore recently adjusted its forecast and now expects an organic growth rate of between minus nine and minus two percent for the full year. “Even in the current market environment, we are seeing good results from our growth initiatives, such as our increased focus on larger customers. At the same time, many companies remain very cautious in their ordering behavior, both in Europe and in the US. With our TAKKT Forward strategy, we are prepared for this situation. In addition to further growth initiatives, we are focusing in particular on measures to improve our cost structure sustainably,” said Weishaar.

TAKKT expects these measures to make a positive contribution to earnings, partially offsetting the impact of lower revenue on earnings. Adjusted for one-time expenses, the EBITDA margin is expected to improve compared with the first half of the year and to be between four and six percent for the full year. Another priority is to strengthen cash flow. “We are working intensively to reduce net working capital, in particular by significantly releasing inventories. In addition, we are evaluating further options to generate positive contributions to cash flow and thus offset the negative effect of higher one-time expenses,” said CFO Timo Krutoff. Overall, the Group expects to generate free cash flow in the low to mid double-digit EUR million range in 2025.

“In this environment, we are focusing on the aspects that we can influence. This means rigorously implementing our TAKKT Forward strategy, which lays the foundation for future growth and improved performance. We continue to have a strong balance sheet and will generate a clearly positive free cash flow in the current year as well. This allows us to stick to our dividend policy and propose a dividend payment in the coming year as well,” said Weishaar.


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


Financial calendar
TAKKT will publish the figures for the first nine months on October 28, 2025.


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

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