TAKKT AG: TAKKT free cash flow hits record high in 2020 - Management Board proposes dividend payment of EUR 1.10 in total

DGAP-News: TAKKT AG / Key word(s): Preliminary Results/Dividend TAKKT AG: TAKKT free cash flow hits record high in 2020 - Management Board proposes dividend payment of EUR 1.10 in total 25.02.2021 / 07:00 The issuer is solely responsible for the content of this announcement. TAKKT free cash flow hits record high in 2020 - Management Board proposes dividend payment of EUR 1.10 in total   Substantial improvement in business performance in fourth quarter with organic sales development of minus 3.6 percent Sales of EUR 1,067.4 (1,213.7) million for 2020 slightly better than recently expected; organic sales decline of 11.8 percent due to pandemic EBITDA of EUR 92.6 (150.2) million at upper end of forecast range Free TAKKT cash flow rises to historic high of EUR 129.8 million Management Board proposes dividend payment of EUR 1.10 per share in total to Supervisory Board Stuttgart, Germany, February 25, 2021. The 2020 fiscal year was shaped by the course of the coronavirus pandemic and its economic consequences. Protecting the employees was the top priority. After the successful implementation of extensive measures to manage costs, inventories and receivables in March and April, TAKKT put increasing emphasis on boosting growth in the second half of the year. The Group generated sales of EUR 1067.4 (1213.7) million in the fiscal year. The updated forecast from October was thus slightly exceeded. The effect from the additional contribution from an acquisition and the negative currency effects almost canceled each other out. Due to the pandemic, organic growth came to minus 11.8 percent. The spread of the virus and the protective measures affected the respective target markets of the business units very differently, as reflected in their varying development. While the Newport group benefited from the high demand for home office products and achieved strong growth, Displays2go experienced a sharp decline in sales because customers had little need for products intended for use at conferences and trade fairs. The stabilization of TAKKT's business continued in the fourth quarter despite the once again rising number of infections and the renewed lockdown in many target markets. "We were able to significantly improve our organic growth in the final quarter, with KAISER+KRAFT and ratioform in particular making a contribution," said CEO Felix Zimmermann. At the Group level, business was only slightly below the level of the previous year with a decline of 3.6 percent. Lower supplier discounts and effects from the valuation of inventories resulting from the lower level of sales had a negative impact on the gross profit margin in 2020, as expected, which reached 39.7 (41.3) percent. The Group was able to significantly reduce personnel and marketing expenses as well as other costs as a result of consistent cost management. EBITDA of EUR 92.6 (150.2) million was at the upper end of the range of EUR 85 to 95 million expected in October. One-time effects of EUR minus 8.6 (minus 8.5) million had a comparable impact on earnings as in the previous year. In 2020, one-time costs resulted from the realignment of KAISER+KRAFT and the early termination of employment contracts. This was countered by a one-time gain from the sale of real estate and a one-time reduction in pension expenses due to adjustment of the pension plan conditions. The EBITDA margin was 8.7 (12.4) percent in the year under review. Without the one-time effects, TAKKT would have achieved close to double-digit profitability of 9.5 percent in the crisis year of 2020. Despite the difficult environment, TAKKT generated its highest free cash flow in the history of the company in 2020. The free TAKKT cash flow benefited from the substantial release of cash from net working capital and the cash inflow from the sale of real estate. It increased to EUR 129.8 (107.1) million, thereby underscoring the cash flow strength of the business model. TAKKT exhibits strong financial stability due to its high cash flow and an equity ratio of over 60 percent. "After suspending last year's payout due to the crisis, we want to resume the reliable dividend policy of previous years and, besides a dividend payment of EUR 0.55 for the fiscal year 2020, add another EUR 0.55 to make up for the suspended base dividend from the previous year. As the Management Board, we will therefore propose to the Supervisory Board a dividend payment of EUR 1.10 per share in total," said CFO Claude Tomaszewski. This dividend proposal is subject to the condition that the negative effects of the pandemic will not worsen significantly over the coming weeks. The future course of the pandemic, progress with vaccinations as well as the timing and extent of the easing of restrictions will have a significant impact on the current fiscal year. TAKKT anticipates a challenging first quarter. Economic indicators for the current situation recently showed a negative trend due to the extension of the lockdown in many regions. In addition, the previous year's figures had not been affected by the pandemic until mid-March. Business performance should improve markedly over the course of the year. TAKKT will give further details on the 2020 consolidated financial statements and an assessment of future business development with the publication of the annual report on March 29. Conference call: February 25, 2021, at 2:00 p.m. (CET). The login details to participate in the earnings call are available at the following link: www.takkt.de/event Financial calendar TAKKT will publish the final figures for the 2020 fiscal year as well as the annual report on March 29, 2021. Preliminary IFRS Figures for the TAKKT Group for the 2020 Fiscal Year (in EUR million)   Q4 2019 Q4 2020 Change in % FY 2019 FY 2020 Change in % TAKKT Group Sales 290.6 270.6 -6.9 1213.7 1067.4 -12.0 organic growth     -3.6     -11.8 Omnichannel Commerce 231.8 218.1 -5.9 971.5 837.3 -13.8 organic growth     -3.1     -13.2 Web-focused Commerce 60.0 53.7 -10.5 247.3 234.3 -5.3 organic growth     -5.6     -6.3 EBITDA 32.1 18.5 -42.4 150.2 92.6 -38.3 EBITDA margin (%) 11.0 6.8   12.4 8.7   EBIT 20.8 7.8 -62.6 108.8 52.4 -51.9 Earnings per share (in EUR) 0.23 0.10 -56.5 1.14 0.57 -50.0 TAKKT cash flow 25.9 17.8 -31.3 120.4 82.0 -31.9 TAKKT cash flow margin (%) 8.9 6.6   9.9 7.7       About TAKKT AG TAKKT is the leading B2B distance seller for business equipment in Europe and North America. The Group focuses on two business models - Omnichannel and Web-focused Commerce. The Omnichannel Commerce segment addresses corporate customers with complex requirements over numerous contact points and with a wide range of services. The Web-focused Commerce segment concentrates its offers primarily via web shops on the less complex requirements of more price-conscious B2B customers. The product range of the subsidiaries comprises more than a million 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 TAKKT Group is represented with its brands in more than 25 countries and employs approximately 2,500 people. The company is listed on the SDAX and Deutsche Börse Prime Standard.   Contacts: Michael Loch phone [phone] Benjamin Bühler phone [phone] Email: [e-mail] 25.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 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Language:	English
Company:	TAKKT AG
	Presselstr. 12
	70191 Stuttgart
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.takkt.de
ISIN:	DE0007446007
WKN:	744600
Indices:	SDAX
Listed:	Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Tradegate Exchange
EQS News ID:	1170933

End of News	DGAP News Service

1170933  25.02.2021