20.03.2014
Delticom AG DE0005146807
DGAP-News: Delticom AG: Revenues in 2013 surpassed the mark of half a billion euros for the first time
DGAP-News: Delticom AG / Key word(s): Final Results
Delticom AG: Revenues in 2013 surpassed the mark of half a billion
euros for the first time
20.03.2014 / 08:04
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Hanover, 20 March 2014 - For Delticom (German Securities Code (WKN) 514680,
ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre
dealer, 2013 was an extremely exciting and successful year. In a difficult
market environment the company increased revenues by 10.8 % to EUR 505.5
million (2012: EUR 456.4 million), reaching the half-a-billion-euro mark
for the first time in the history of the company. Earnings per share were
EUR 0.97 (2012: EUR 1.87).
Q4 13: Successful quarter despite poor market conditions
Revenues. After a decline in the European tyre replacement business in the
first nine months, the winter tyre business failed to pull off the
hoped-for turnaround at the end of the year. Despite the mild winter
weather, Delticom succeeded in increasing sales year on year in the final
quarter. Overall, Delticom generated sales of EUR 196.5 million in the
fourth quarter (Q4 12: EUR 175.9 million, +11.7 %). Of this amount, EUR
17.8 million in sales were received through the Tirendo shops. With this
result, Tirendo (acquired on 16.09.2013) already contributed significantly
to Delticom's sales growth in the fourth quarter of 2013.
EBIT. Fourth quarter EBIT saw a decline of 46.2 %, from prior-year's EUR
15.1 million to EUR 8.1 million or 4.1 % of revenues (Q4 12: 8.6 %). EBIT
of Tirendo in Q4 was EUR -5.8 million. Excluding not only Tirendo and all
expenses and depreciations incurred in connection with the takeover in 2013
but also excluding those extraordinary expenses incurred in the old Group,
Delticom would have achieved EUR 15.1 million of EBIT in Q4 13, compared
with EUR 15.4 million in Q4 12 (-2,2 %). In relation to fourth-quarter
revenues of EUR 178.6 million (excluding Tirendo, Q4 12: EUR 175.9
million), Delticom achieved an 8.4 % EBIT margin before extraordinary
expenses in the fourth quarter (Q4 12: 8.8 %).
Fiscal year 2013
With Tirendo on board, we have strengthened our company in key business
areas and put Delticom on solid footing for future growth. Tirendo's online
shops allow us to address additional customer groups. These customer groups
will now also be able to benefit from our Group's established sales and
logistics network, just like the customers of the Delticom shops. Together,
Delticom and Tirendo can offer customers tailor-made services. This is one
of the reasons why we succeeded in setting new records in terms of customer
numbers in 2013. More than 1 million customers used the Delticom and
Tirendo online shops for the first time to purchase tyres last year.
Revenues. In a difficult market environment the company generated revenues
of EUR 505.5 million (2012: EUR 456.4 million, +10.8 %), reaching the
half-a-billion-euro mark for the first time in the history of the company.
As in previous years, revenue growth was predominantly driven by an
increasing willingness among customers to buy online. In our E-Commerce
core segment, revenues came in at EUR 493.1 million, up 11.7 % year on year
from EUR 441.4 million.
Gross margin. The cost of goods sold increased in the reporting period by
12.2 %, from EUR 338.9 million in 2012 to EUR 380.3 million. The gross
margin for the full year was 24.8 % after 25.7 % in the prior-year period.
The quarterly gross margin increased from 25.0 % in Q4 12 to 25.6 %.
Other operating income. Other operating income increased in 2013 by 44.0 %
to EUR 5.4 million (2012: EUR 3.8 million), thereof gains from exchange
rate differences to the order of EUR 2.8 million (2012: EUR 1.6 million).
Gross profit in relation to total income of EUR 510.9 million (2012: EUR
460.1 million) amounted to 25.6 % (2012: 26.3 %).
Personnel expenses. On 31.12.2013, the company employed a total of 254
employees. 144 of them worked for Delticom and the remaining 110 for
Tirendo in Berlin. In the reporting period on average 179 staff members
were employed at Delticom (previous year: 144). Personnel expenses
amounted to EUR 11.3 million (2012: EUR 8.8 million). This increase is
primarily due to the acquisition of Tirendo and their workforce. Personnel
expenses also include one-off costs of EUR 746 thousand. Compared to the
prior-year period, the personnel expenses ratio (staff expenditures as
percentage of revenues) increased from 1.9 % to 2.2 %.
Other operating expenses. Overall the other operating expenses for the past
financial year totalled EUR 97.2 million, an increase of 26.0 % over the
prior-year value of EUR 77.1 million.
Among the other operating expenses, transportation costs is the largest
line item. They increased in the reporting period in line with the higher
business volume from EUR 38.2 million by 14.1 % to EUR 43.6 million. The
share of transportation costs against revenues went up from 8.4 % in 2012
to 8.6 % in 2013.
Marketing costs. In the reporting period, costs for advertising totalled
EUR 21.1 million, after EUR 11.3 million in 2012. This represents a
marketing expense ratio (marketing expenses as a percentage of revenues) of
4.2 % (2012: 2.5 %). Marketing expenses in Q4 13 totalled EUR 10.7 million
(Q4 12: EUR 4.6 million). Marketing spent with 5.5 % of revenues was higher
than last year's 2.6 %.
EUR 5.8 million of the marketing spent in Q4 can be assigned to Tirendo.
This includes the new commercial with Sebastian Vettel as Tirendo brand
ambassador. Since mid of September the winter spot was regulary broadcasted
on TV in several countries.
Financial and legal. Financial and legal expenses totalled EUR 3.7 million
in the reporting period. In the previous year total expenses were
considerably lower at EUR 0.9 million due to the reversal of accruals.
Expenses in the second half of 2013 totalled EUR 2.4 million (H2 12: EUR
0.5 million), mainly related to due diligence costs, auditing, tax,
financial and legal advice concerning the acquisition of Tirendo.
Depreciation. Depreciation for 2013 rose by 61.4 % from EUR 2.7 million to
EUR 4.3 million. Main reason for this increase is the scheduled
depreciation of intangible assets totalling EUR 17.5 million, identified as
part of the purchase price allocation.
Earnings performance. EBITDA for the reporting period came down by 37.2 %
from EUR 35.3 million to EUR 22.2 million. EBIT amounted to EUR 17.8
million (2012: EUR 32.6 million, -45.3 %). This equates to an EBIT margin
of 3.5 % (2012: 7.1 %). Depreciations on intangible assets identified as
part of the Tirendo takeover burdened EBIT by EUR 1.5 million in the period
under review. The EUR -6.9 million EBIT generated by Tirendo from the 16
September 2013 acquisition date reduced Group EBIT even further.
Delticom excluding Tirendo. Assuming that in 2013 the takeover of Tirendo
had not occurred, and consequently also that no related audit occurred in
the financial year elapsed, the old Group would have generated revenues of
EUR 484.8 million (2012: EUR 456.4 million) and an EBIT of EUR 26.3 million
(2012: EUR 32.6 million), reflecting an 5.4 % EBIT margin, compared with
7.1 % in the previous year.
Income taxes. In 2013 the expenditure for income taxes was EUR 6.2 million
(2012: EUR 10.3 million). This equates to a tax rate of 34.8 % (2012: 31.8
%). The income tax rate was unusually high because the due diligence and
advisory costs of EUR 1.1 million related to the Tirendo deal have to be
capitalised as incidental acquisition expenses.
Consolidated net income. Consolidated net income for 2013 decreased from
EUR 22.2 million to EUR 11.6 million. Despite this drop of 47.9 % our
business model has once again proven its resilience. Even in adverse market
environments Delticom can seize growth opportunities as they arise,
resulting in a profitable business. This is a vital factor if we are to
pursue our growth course moving forward and maintain the upper hand over
our competitors.
Dividend. At the Annual General Meeting on 29.04.2014, the Management Board
and Supervisory Board will propose a dividend of EUR 0.50 per share (2012:
EUR 1.90, -73.7%). The remainder will be used in the financial year to
reduce our financial debt to banks that were raised for the financing of
the Tirendo aquisition.
Outlook. Even if market and weather conditions do not turn out better than
in the previous year, we anticipate a revenues increase of 10 % for the
current financial year. In terms of overall earnings before interest, tax,
depreciation and amortisation (EBITDA), we aim to be at least on par with
the financial year 2013.
In light of the ever-increasing popularity of the Internet as a shopping
channel, online tyre purchases are being lifted by consumer confidence as
well. For the coming years, industry experts predict further growth
potential for online tyre sales to end-users. According to estimates by the
BRV (German Tyre Association), the share of tyres sold online could rise to
between 15 % and 22 % by 2020. As market leader in a growing sales channel,
we will continue to benefit from this trend.
The full report for fiscal year 2013 stands ready for download within the
"Investor Relations" section of the website www.delti.com.
Company profile:
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
Contact:
Delticom AG Investor Relations
Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49(0)511-936 34-8903
Fax: +49 (0)89-208081147
e-mail: [email protected]
End of Corporate News
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20.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Delticom AG
Brühlstraße 11
30169 Hannover
Germany
Phone: +49 (0)511 93634 8000
Fax: +49 (0)511 33611 655
E-mail: [email protected]
Internet: www.delti.com
ISIN: DE0005146807
WKN: 514680
Listed: Regulierter Markt in Frankfurt; Freiverkehr in Berlin,
Düsseldorf, Hamburg, Hannover, München, Stuttgart
End of News DGAP News-Service
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258543 20.03.2014
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