Delticom adjusts full-year forecast
Hanover, 04 November 2014 - WKN 514680 (German Securities Code), ISIN DE0005146807, stock market symbol DEX.
Warm temperatures in March prompted numerous motorists to make an early switch to summer tyres. Due to this accelerated purchasing effect, business during the second quarter in many places fell short of expectations. In the third quarter, too, tyre trading was confronted by year-on-year weaker replacement demand. Mild temperatures in September also prevented an early start to the winter tyre season.
On the basis of preliminary figures, Delticom generated revenues of € 88.1 million in the third quarter (Q3 13: € 96.9 million, -9.1 %). In the first nine months of 2014, consolidated revenues of € 314.1 million were up by 1.6 % year-on-year (9M 13: € 309.1 million). Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to € 1.8 million for the third quarter (Q3 13: € 1.7 million, +4.5 %). During the first nine months of the current financial year, the company consequently generated € 8.0 million of EBITDA (9M 13: € 12.0 million). The negative result contribution from Tirendo (purchase date: September 16, 2013) during the first nine months of 2014 comprises an important reason for the 33.3 % year-on-year decline of group EBITDA (9M 14: Tirendo EBITDA: -€ 9.1 million).
The final quarter of the year is of central importance to both revenues and profitability on a full-year basis. In many places this year, the switch from summer tyres to winter tyres failed to gather momentum until mid-October. Although new order intake volumes at Delticom and Tirendo have reported significant year-on-year growth during the final two weeks of October, the further course of business during the fourth quarter will depend significantly on the development of the weather in Europe over the coming weeks.
Given the unusual warm weather, the challenging market situation during the first nine months of the year and the uncertainty relating to the further course of business during the fourth quarter, Delticom is adjusting its full-year forecast for the 2014 financial year. On the basis of current planning, consolidated revenues will lie in a range of between € 500 million and € 520 million on a full-year view. Depending on the respective market situation over the coming weeks and related price trends, the company is aiming for EBITDA of between € 15 million and € 20 million in the 2014 financial year.
Delticom will make its finalized nine-month report available on November 13, 2014, for downloading from the "Investor Relations" area of the company's website at www.delti.com.
Delticom is Europe's leading online tyre retailer. Founded in 1999, the Hanover-based company has more than 100 online shops in 42 countries, among others ReifenDirekt, www.mytyres.co.uk in UK and www.123pneus.fr in France, as well as the Tirendo shops which enjoy a high level of recognition, not least due to its brand ambassador, Sebastian Vettel. Delticom offers a wide range of products for its private and business customers: more than 25,000 models from over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels, motor oil, replacement parts and accessories.
Customers enjoy all the advantages of modern E-Commerce: convenience in order placing, quick, efficient delivery, clear cost information and, last but not least, low prices. The products are delivered in two business days to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 37,000 service partners (8,800 in Germany alone) for professional fitting directly on to the customer's vehicle at a reasonable price.
On the Internet at: www.delti.com
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