Takkt: Solid numbers and special dividend

Last Updated: 19. Februar 2024By

The reporting season is already over for the heavyweights of the US stock market. But in Germany, it’s a different story. Many smaller companies are still presenting their financial results these days, including Takkt, a German mail-order retailer for office and business supplies, with a focus on Europe and the USA.

The company released preliminary figures for the fourth quarter and the full year 2023 last week and announced its dividend proposal for 2024. The numbers are solid, and the company is once again very generous with its dividend.

Solid numbers in line with expectations Let’s take a look at the numbers: In the 2023 fiscal year, Takkt generated a free cash flow of 91.9 million euros, increasing the cash inflow by over 21 million euros despite challenging economic conditions.

Customer behavior in the markets relevant to Takkt remained cautious, as expected, in the fourth quarter. This means that the revenue and earnings development in 2023 was in line with the forecast from October of last year. Takkt achieved a revenue of 1.24 billion euros in 2023, slightly below the previous year’s value.

Due to the subdued demand, the company intensified its measures to improve gross profit margin, cost management, and cash generation throughout the year. This resulted in an increase in gross profit margin from 39.3% to 39.8% and an earnings before interest, taxes, and depreciation (EBITDA) of 111.8 million euros. The EBITDA margin decreased from 9.9% to 9.0%.

„The year 2023 has shown that we can quickly adapt to changing conditions with our business model. Throughout the year, we have proven that we have our costs under control despite transformation projects and inflation,“ said Takkt Chief Financial Officer Lars Bolscho.

Total dividend of 1 euro per share Due to the strong cash flow and the consistently high equity ratio, the Takkt management board proposes an additional special dividend of 0.40 euros per share in addition to the base dividend of 0.60 euros per share.

„We want to let our shareholders participate in the strong cash flow of the past year through the special dividend. And even after the payout, we remain fully capable of action when it comes to M&A and share buybacks,“ said Takkt CFO Bolscho.

Thus, Takkt will distribute a total dividend of 1 euro per share in the current year. Based on the current share price, this means a high dividend yield of almost 7.3%. The combination of a moderate valuation and a high dividend yield makes Takkt’s stock interesting, according to my analysis.

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