TAKKT (TTK) CMD 2025 summary

Strategic direction and portfolio focus

• Launched "TAKKT Forward" strategy, prioritizing Industrial & Packaging as the core division for profitable growth, while maintaining clear plans for National Business Furniture and Food Service divisions.

• Shift from a transactional e-commerce model to a customer-centric, omnichannel approach, leveraging a house of brands and tailored solutions for large, complex customers.

• Divestment of non-core businesses, including the sale of MyDisplays and review of Displays2go, to streamline the portfolio and improve profitability.

• Targeting large and medium-sized corporate customers with expanded product range and services, while addressing smaller customers through digital self-service.

• Management incentives and leadership structure aligned with profitability, cash generation, and ESG targets, extending to the broader leadership team.

Financial guidance and performance targets

• 2025 guidance: organic sales growth between -4% and +6%, adjusted EBITDA margin of 6%-8%, and cash conversion of 60%-80% of EBITDA, with gradual recovery expected in the second half.

• By 2028, targets include above-market sales growth, EBITDA margin exceeding 10% (long-term goal of 12%), and free cash flow conversion of 50–60% of EBITDA.

• Continued commitment to a base dividend of €0.60 per share, with potential for special dividends and share buybacks depending on financial performance.

• Temporary increase in CapEx to above 2% of sales through 2027 to support technology upgrades, with normalization expected from 2028.

• Solid financial foundation with strong liquidity, high equity ratio, and low net debt, supporting strategic flexibility.

Division-specific plans and operational improvements

• Industrial & Packaging: Targeting above-market growth, 15% EBITDA margin by 2028, and <30 days cash conversion cycle, leveraging omnichannel, brand cross-selling, and supply chain optimization.

• National Business Furniture: Aiming for slightly above-market growth, 9% EBITDA margin, and <30 days CCC by 2028, with initiatives in assortment modernization, tech upgrades, and process optimization.

• Food Service: Focused on turnaround to 7% EBITDA margin by 2028, expanding into higher-margin categories, improving customer retention, and leveraging digital tools.

• Displays2go: Ongoing review of strategic options, with future dependent on sustainable, profitable growth.

• Structural improvements in net working capital management and automation to support cash flow and profitability.