STUTTGART (dpa-AFX) - In view of the sluggish economic environment, office furniture retailer Takkt expects a decline in organic sales in 2024. After a weak start, growth is expected to improve from quarter to quarter, but organic sales are still likely to fall "in the high single-digit to low double-digit percentage range", said CFO Lars Bolscho in a statement on Thursday. Adjusted for one-off costs, earnings before interest, taxes, depreciation and amortization (EBITDA) for the Stuttgart-based company are expected to be between 8.0 and 9.5 percent. The company is continuing to apply the cost brake.

The cost base is to be reduced by at least 15 million euros through adjustments to other costs and personnel. However, this will also initially entail expenses that will put pressure on profits. From 2025, however, the company, which is listed in the second-line index SDax, intends to return to its growth path. The aim for the coming years is to accelerate organic growth and improve the operating profit margin to 12%.

As has been known since mid-February, the company generated lower turnover and operating profit in 2023 due to weak demand. Turnover fell by a good 7 percent to 1.24 billion euros. Earnings before interest, taxes, depreciation and amortization fell from a good 132 million euros to just under 112 million euros./mis/men