Delticom AG: Q1 2011 on track
Hanover, 19 April 2011 Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807,
stock market symbol DEX), Europe's leading online tyre dealer, looks back on another successful
quarter. According to todays preliminary figures, revenues in the first quarter of 2011 increased
by 14.6% to 85.4 million and EBIT by 4.6% to 6.1 million. EBIT margin decreased to 7.2%
(Q110: 7.9%). Earnings per share grew 4.8% to 0.35.
Due to a lower amount of snowfall this winter, sales were initially weaker than in the previous year. On
top of this, Easter does not fall until the second half of April this year; traditionally, many drivers change
to their summer tyres before this holiday. Last year, business in March was able to benefit from this effect,
whereas this year will see relatively more summer tyre sales happen in the second quarter. However,
demand did not gather significant momentum until springlike temperatures took hold in March.
Revenues. In spite of of the previous year's basis, Delticom was able to generate revenues of
85.4 million, a plus of 14.6% from prior-year's 74.5 million. Revenues in the E-Commerce division
were up year-on-year by 13.9%, from 70.7 million to 80.5 million. The revenues of the Wholesale division
lifted by 28.6% to 4.8 million, after prior-year revenues of 3.7 million. Other operating income
increased in Q111 by 3.1% to 1.3 million (previous year: 1.3 million).
Gross profit. The cost of sales increased in the reporting period by 15.0%, from 54.8 million in 2010
to 63.0 million. In an environment of rising purchasing prices and further supply bottlenecks, Delticom
was to a good extent able to cushion the hikes by purchasing early. As a result, the gross profit advanced
in the reporting period by 13.0% year-on-year, from 21.0 million to 23.7 million. The gross profit
margin (gross profit in relation to total income) decreased from 27.7% to 27.3%.
Personnel expenses. In the reporting period on average 108 staff members were employed at Delticom
(Q110: 94). Personnel expenses amounted to 1.7 million (previous year: 1.6 million). Compared to
the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) remained
almost unchanged (2.0%, Q110: 2.1%).
Other operating expenses. Overall the other operating expenses totalled 15.4 million in the past
quarter, an increase of 2.2 million or 16.7% over the prior-year value of 13.2 million.
Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are
picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting
stations. As business volume increases, so too do these transportation costs, from 6.4 million by 5.8%
to 6.8 million. The share of transportation costs against revenues decreased from 8.6% in Q110 to
7.9% in Q111, partly driven by relatively stronger revenue growth coming from higher selling prices.
Marketing expenses amounted to 2.0 million, after 1.7 million in Q110. Although this represents an
increase of 17.0%, the relationship to revenues remained on a level with last year, with a share of 2.3%.
Depreciation. In line with the gradual expansion of warehouse capacity and the parallel investments into
warehousing infrastructure, scheduled depreciation rose by 24.6% from 0.3 million in Q110 to
0.4 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's
Earnings performance. Although EBIT had risen steeply in the first quarter of last year (+122.3%), EBIT
for Q111 saw a year-on-year increase once again, by 4.6% to 6.1 million (Q110: 5.9 million). This
translated to an EBIT margin of 7.2% (Q110: 7.9%).
The continually low Euro money market rates led to a poor financial result of 39 thousand (Q110:
26 thousand). The expenditure for income taxes was 2.0 million (previous year: 1.9 million). The
tax rate of 32.2% was almost flat at the previous year's level.
Consolidated net income for the period grew from 4.0 million to 4.2 million. This corresponds to
earnings per share (EPS) of 0.35 (undiluted, Q110: 0.34), a step-up of 4.8%.
Cash flow and liquidity position. Following the reversal of year-end effects and the scheduled buildup
of stock levels to 83.3 million (31.12.2010: 51.7 million), net working capital increased to
23.7 million (31.12.2010: 1.3 million). As a consequence, cash flow from ordinary business activities
(operating cash flow) for the period under review came in lower than last year, at 18.5 million (Q110:
4.7 million). Delticom's reporting-date liquidity amounted to 47.5 million; it was slightly higher than
in the previous year (31.03.2010: 45.0 million).
Frank Schuhardt (CFO) is satisfied with the progress of business so far: The success seen in the equivalent
quarter of last year placed the bar very high. So of course that makes me all the more pleased to
see that Delticom has managed to once again increase revenues and its result. Were absolutely on
track. For 2011, Delticom AGs management continues to anticipate an increase in revenues of approximately
10%, with an EBIT margin around one percent lower than in 2010.
The full report for the first quarter of 2011 will be published by Delticom AG on 10 May 2011
on its website www.delti.com within the "Investor Relations" section.
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops
in 39 countries, the company offers its private and business customers an unequalled assortment of excellently
priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (premounted
tyres on rims), selected replacement car parts and accessories, motor oil and batteries. The independent
website reifentest.com contains impartial information about tyre tests and helps the customers choose from more
than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home
address, or to one of more than 28,000 service partners affiliated garages which take delivery of tyres and then
install these on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch
|Delticom AG Investor Relations
|Tel.: +49(0)511-936 34-8903
|Fax: +49 (0)89-208081147 |
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