Delticom AG: Q2 revenues and earnings on track
Hanover, 19 July 2011 Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807,
stock market symbol DEX), Europe's leading online tyre dealer, has published preliminary figures
for the second quarter of 2011. Over the past months the company was able to increase its
revenues and earnings, despite the strong prior-year base. With its new central warehouse,
Delticom is well prepared for the coming quarters.
The European summer tyre trade has lagged behind expectations so far. At Delticom, positive figures in
May barely managed to offset a comparatively weak April. However, tyre sales have gone up again noticeably
year-on-year since June.
Revenues. In the second quarter, Delticom was able to generate revenues of 112.9 million (Q210:
102.9 million) a plus of 9.8%, in spite of the previous year's strong base. As a result, year-to-date
revenues amounted to 198.3 million (H110: 177.3 million, +11.8%). H1 revenues in the E-Commerce
division were up year-on-year by 12.0%, from 169.7 million to 190.1 million. The revenues of the
Wholesale division grew by 7.3% to 8.2 million, after prior-year revenues of 7.6 million. In the same
period, other operating income decreased by 7.7% to 3.1 million (H110: 3.4 million).
Gross profit. The cost of sales in the reporting period totalled 144.5 million (H110: 129.3 million,
+11.7%), thereof 81.5 million for the second quarter (Q210: 74.5 million, +9.4%). In the first six
months of 2011 the gross profit advanced by 10.8% year-on-year, from 51.4 million to 56.9 million.
Despite a challenging Pan-European demand situation, the rise in purchasing prices were largely passed
on to customers. Consequently, second quarter gross profit margin (gross profit in relation to total income)
came in flat year-on-year at 29.0%. For the first half of the year the gross profit margin decreased only
slightly from 28.4% to 28.3%.
Personnel expenses. In the reporting period an average of 108 staff members were employed at Delticom
(H110: 96). Personnel expenses amounted to 3.5 million (previous year: 3.2 million). Compared to
the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) remained
unchanged at 1.8%.
Other operating expenses. Overall the other operating expenses in H111 totalled 33.5 million, an
increase of 2.6 million or 8.5% over the prior-year value of 30.9 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
service partners. Transportation costs registered only a rather small step-up in the reporting period, from
15.8 million to 16.2 million (+2.2%). Because transportation volumes in the second quarter were
only slightly higher than last year's, quarterly transportation costs remained flat year-on-year at 9.4 million.
Regarding the first six months as a whole, the share of transportation costs against revenues decreased
from 8.9% to 8.2%, partly driven by relatively stronger revenue growth coming from higher selling prices. Marketing expenses in Q211 amounted to 2.0 million after 1.9 million in Q210, an increase of just 4.1%. As a result, marketing in percent of revenues came down slightly, from 1.8% to 1.7%.
Depreciation. In line with the significant expansion of warehouse capacity and the parallel investments
into warehousing infrastructure, scheduled depreciation for the past quarter rose by 42.3%, from
0.3 million in Q210 to 0.4 million. For the first half of the year the total amount was 0.8 million
(H110: 0.6 million, +33.7%). The low absolute level of depreciation underlines the low capital intensity
of Delticom's business.
Earnings performance. Last year's second quarter earnings before interest and taxes (EBIT) had shown
a steep rise by +43.9% to 10.9 million. Nevertheless, against the backdrop of a stable gross profit
margin, EBIT for this year's Q2 saw a year-on-year increase once again, by 19.6% to 13.0 million. This
translated to a quarterly EBIT margin of 11.5% (Q210: 10.6%). The EBIT for the total H111 came in at
19.1 million (H110: 16.7 million), a plus of 14.4% and an EBIT margin of 9.7% (H110: 9.4%).
Inventories and liquidity position. Delticom opened a new large-scale warehouse in the second quarter.
Following the accelerated buildup of stock levels to 103.2 million (31.12.2010: 51.7 million), net
working capital increased to 44.3 million (31.12.2010: 1.3 million). Consequently, cash flow from
ordinary business activities (operating cash flow) for the period under review came in significantly lower
than last year, at 24.9 million (H110: 3.5 million). Taking the cash dividend of 32.2 million for
2010 into account, cash and cash equivalents as of 30.06.2011 totalled 6.1 million (30.06.2010:
21.8 million, 31.12.2010: 66.8 million). The companys net cash position (cash and cash equivalents
less liabilities from current accounts) amounted to 0.9 million.
Frank Schuhardt (CFO): Our new warehouse has allowed us to stock up for the upcoming months more
aggressively than originally envisioned. Compared to last year, we are now in a better position to offer
our customers attractively priced tyres throughout the entire winter. Despite the strong prior-year base,
Delticoms management expects to increase both sales volume and revenues in the fourth quarter, assuming
normal winter weather conditions. Frank Schuhardt adds: We remain on track. Our plans call for
around 10% revenue growth in 2011 and an EBIT margin of around one percentage point lower than in
The full report for the first six months of 2011 will be published on 09 August 2011 within the
"Investor Relations" section of the website www.delti.com.
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 29,000 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)511-8798-9138 |
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