DGAP-Adhoc: TAKKT AG: TAKKT expects significantly weaker business in the fourth quarter and reacts with structural cost adjustments

TAKKT expects significantly weaker business in the fourth quarter and reacts with structural cost adjustments

TAKKT AG has forecast a slight organic (i.e. adjusted for currency and acquisition effects) sales growth and an EBITDA margin of between 12 and 14 percent for the fiscal year 2019 so far. TAKKT did not rule out a slightly negative organic sales development and an EBITDA margin in the lower range of the aforementioned corridor if the reluctance of individual sectors intensified or spread to other markets and regions.

In the first nine months, TAKKT was able to increase reported sales by 5.1 percent compared to the same period of the previous year. Organic growth was 0.5 percent. In the third quarter, organic sales growth saw a decline, coming to minus 2.3 percent. While in the US the termination of the agreement with a major Hubert customer as of end of February had a negative impact on the Group's growth rate of around two and a half percentage points, the continuing decline in the economy and the resulting challenging market environment in Europe also contributed to this development. The overall economic and market environment - especially in Germany - was weaker than expected in the third quarter.

For the fourth quarter, TAKKT expects the organic sales development to continue to weaken noticeably due to a further decline in the economic and market environment.

The TAKKT Management Board now expects an organic sales decline of between one and two percent for the full year 2019. In this case, TAKKT has planned structural cost adjustments in addition to the ongoing disciplined cost management, which will lead to one-off expenses in the fourth quarter. Due to the weaker than expected organic growth and the planned one-off expenses, TAKKT expects to achieve an EBITDA margin for the full year 2019 around the lower end of the previously communicated margin of 12 to 14 percent. Reported Group sales development is expected to remain positive, primarily due to currency effects.