Takkt ETR: TTK said its business stabilized further in the second quarter as commercial initiatives and cost measures began to gain traction, though management said demand conditions remain volatile and confirmed a cautious full-year outlook.
Chief Executive Officer Andreas Weishaar said first-half organic sales declined 5.4%, a figure affected by the company’s deliberate discontinuation of foodservice big-contract business. Excluding that effect, like-for-like growth in the second quarter was negative 3%, which Weishaar described as evidence that underlying development was improving.
“We’re not yet where we want to be,” Weishaar said, citing a challenging market environment. “But the direction of travel is improving.”
Second-Quarter Margin Improves Despite Lower Sales
Group sales totaled €228 million in the second quarter, down 4.1% from the prior year after adjusting for currency, according to Chief Financial Officer Timo Krutoff. Sales would have been only slightly below the prior-year level after also adjusting for the discontinued foodservice contract business, he said.
Takkt reported an adjusted EBITDA margin of 4.1% for the quarter, compared with a first-half adjusted EBITDA margin of 3.3%. Krutoff said the quarterly result benefited from a stronger gross profit margin, initial procurement savings from sourcing in best-cost countries and favorable effects from changes in U.S. tariff regulations.
Those gains more than offset higher energy, freight and certain product costs, particularly in packaging, he said. However, Krutoff cautioned that some gross-margin benefits may be temporary and that the company does not necessarily expect its adjusted EBITDA margin to remain at about 4% during the second half.
For the first six months, Takkt generated sales of €454 million, down 7.7% year over year. Currency effects accounted for 2.3 percentage points of the decline, while organic sales fell 5.4%. EBITDA totaled €9 million, and the adjusted margin declined by 1 percentage point from the prior year.
Lower sales reduced gross profit by about €15 million in the first half, Krutoff said. Cost-management actions reduced costs by around €9 million, partly offsetting the earnings effect of the lower revenue base. One-time costs rose to €6 million, primarily related to operational changes.
Portfolio Simplification Continues
The company completed the sale of European foodservice business XXLhoreca to GastroHero at the end of June. XXLhoreca generated approximately €15 million in sales during 2025 and had a negative EBITDA margin, Weishaar said.
Management characterized the divestment as part of a broader effort to simplify Takkt’s portfolio and focus resources on businesses with stronger value-creation potential. Previous actions included the sale of MyDisplays at the end of 2024, the integration of Post Up Stand into Displays2go and the discontinuation of the foodservice big-contract business.
In response to a question, management said XXLhoreca is expected to reduce reported full-year sales by somewhat less than 1 percentage point. The effect does not alter the company’s organic-sales guidance because that metric is adjusted for portfolio changes. Management said the business’s negative EBITDA and free-cash-flow contribution meant the group-level financial impact would be limited.
Takkt also expanded its management board in May, appointing Helmar Hipp to lead the Industrial & Packaging business area. Weishaar said the appointment underscores the importance of the division, which is the company’s largest business area.
Division Trends Remain Uneven
Industrial & Packaging showed improving order intake across most European countries, although Germany remained a difficult market due to weak industrial production and cautious customer investment decisions. Organic sales in the division were still below the prior-year level, while adjusted EBITDA margin fell to 7.1% from 8.9% a year earlier.
The company is pursuing customer reactivation, deeper engagement with existing customers and more selective marketing spending under its Go-To-Market Boost program. Takkt also plans a larger catalog mailing to existing customers to complement digital marketing activity.
Office Furniture & Displays, or OF&D, delivered positive organic growth of 4% in the second quarter. The improvement was driven by business-customer orders at NBF, while demand in other channels and in the displays business remained subdued. The division’s adjusted EBITDA margin rose to 7.1%, nearly 2 percentage points above the prior-year level.
Management said NBF remained the strongest-performing U.S. business, supported by investments in sales capabilities and customer acquisition. Displays2go improved from a weak start to the year that was affected by snowstorms, but its second-quarter performance remained below the prior year.
Foodservices remained Takkt’s principal turnaround challenge. Sales declined 18.5%, reflecting currency effects and the discontinued contract business. On a like-for-like basis, the sales decline was about 7%, similar to the previous year’s run rate. Despite savings in personnel, marketing and other costs, adjusted EBITDA margin declined to negative 2.5% from negative 0.7% a year earlier.
The company is focusing foodservice efforts on website and call-center performance, converting its chains pipeline and expanding its spare-parts business.
Savings Program and Cash Outlook
Takkt said it remains on track to achieve more than €30 million in sustainable run-rate savings by the end of 2026. About two-thirds of the targeted savings have already been achieved, according to Weishaar.
The measures include a new Industrial & Packaging operating model, expanded use of the company’s competence center, streamlined workflows and automation initiatives in order processing, translations and product descriptions. Management also expects additional benefits over the next 18 months from sourcing in best-cost countries, although higher raw-material and oil prices are creating pressure, particularly in packaging.
Free cash flow turned slightly positive in the second quarter after an expected first-quarter outflow. Year-to-date free cash flow was virtually unchanged from the prior-year level. Krutoff said seasonal working-capital patterns could lead to cash outflow in the third quarter before a stronger fourth-quarter contribution.
Net financial liabilities were nearly unchanged from year-end at €134 million, while the equity ratio remained around 50%.
Takkt confirmed its 2026 guidance for organic sales development between negative 7% and positive 3%, an adjusted EBITDA margin between 2% and 5%, and positive free cash flow. Management said the outlook assumes that the effects of the Middle East conflict, including elevated energy prices, inflation and freight costs, remain manageable and do not worsen in the coming months.
About Takkt (ETR:TTK)
TAKKT AG operates as a B2B direct marketing company for business equipment in Germany, the rest of Europe, and the United States, and internationally. The company operates in three segments: Industrial & Packaging, Office Furniture & Displays, and FoodService. The Industrial & Packaging segment offers pallet lifting trucks and swivel chairs; special-purpose products, including environmental cabinets and containers for hazardous materials, as well as collapsible boxes, package paddings, shipping pallets, and stretch films under the kaiserkraft name; shipping packaging products under the ratioform brand; and a wide range of office furniture and business equipment under the BiGDUG and OfficeFurnitureOnline names.
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