Telgte, November 7, 2024 - The quality discounter Takko Fashion today announced the closing of a successful wholistic refinancing which substantially improved its capital structure by extending its debt maturities at better terms.
In addition to the five-year extension of its letter of credit facility and raising a new revolving credit facility, the refinancing includes a EUR 350 million bond issue with improved financial terms that provide long term planning reliability and more financial flexibility.
The new financing follows record sales and strong adjusted EBITDA growth in the financial year 2023/2024 (January 31), and sales growth exceeding expectations as well as record results in the first half of the current financial year 2024/2025 (February 1 to July 31, 2024). Takko Fashion generated record net revenue of EUR 635 million in the first half of the year. This puts the company's turnover 2 % above the previous year's level (H1 2023/2024: EUR 621 million). Adjusted EBITDA Pre-IFRS 16 amounted to a record EUR 97 million (H1 2023/2024: EUR 61 million). The outlook for the twelve-month period ended September 30, 2024 indicates a similarly strong trajectory.
With this strong business performance in the first half of the year, Takko Fashion was able to outperform the average sales development of the German apparel market despite continued consumer restraint. This reflects the company's clear and distinct value proposition for consumers, with its unique brand promise of delivering good quality mainstream apparel at low prices for the whole family. The corporate strategy aims to consolidate the company’s position as a leading European quality discounter by continuing its growth trajectory and increasing market share in a growing market.
Martino Pessina, CEO of Takko Fashion: "The closing of the refinancing is a testament to the financial market’s trust in Takko Fashion’s growth strategy and leadership. Our strong operational results show that our strategy is paying off. Several impactful strategic initiatives have successfully contributed to the record adjusted EBITDA and increased adjusted EBITDA margin of 15 % in the first half of the year. With the backing of our investors and strengthened financial profile, we have a strong financial basis to continue to invest in our future growth and accelerate to deliver on our strategic priorities. Takko Fashion's business is once again proving to be very resilient. Equally important for our continued success is the great commitment of all our colleagues and the unique Takko culture."
Stefan Macheleidt, CFO of Takko Fashion: "It is an important step for us to be back on the capital market. With our excellent business performance in the first half of the year, we were able to significantly outperform the development of the German fashion market despite the challenging overall economic situation. The fact that our growth comes almost exclusively from like-for-like stores is a clear sign of our business model’s strength and shows additional potential for further growth. We were able to increase our adjusted EBITDA to a record high and thanks to this strong performance, we improved total liquidity by 16 % at the end of the first half of the year. Our big thanks go to the entire Team Takko.”
Takko Fashion will continue its business with suppliers and partners in Bangladesh unchanged.
As a globally operating fashion company we are aware of our responsibility for all of our stakeholder and actively promote compliance with standards of conduct as well as…
