12.11.2015
Delticom AG DE0005146807
DGAP-News: Delticom publishes 9-Monthly Report 2015
DGAP-News: Delticom AG / Key word(s): 9-month figures/Quarter Results
Delticom publishes 9-Monthly Report 2015
12.11.2015 / 08:04
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Delticom publishes 9-Monthly Report 2015
Hanover, 12 November 2015 - Delticom (German Securities Code (WKN) 514680,
ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre
dealer, has published its full report for the first nine months of 2015. In
9M15 the company recognized revenues of EUR 354.2 million, an increase of
12.7 % after EUR 314.1 million in the prior-year period. Earnings before
interest, taxes, depreciation and amortization (EBITDA) for the reporting
period came in at EUR 8.6 million (9M14: EUR 8.0 million, +7.3 %). EBIT
came down by 10.3 % from EUR 1.8 million to EUR 1.6 million due to higher
depreciations.
Business in the first nine months
Market environment. The negative trend observed in the first half of the
year with a decline in replacement tyre business continued into the third
quarter. According to industry association, summer tyre sales in Germany
were down by 9.3% in 9M15 while winter tyre sales to consumers decreased by
3.4%. Consequently, car tyre sales in the first nine months of the year
were down nearly 8 % year on year.
Revenues. In 9M15 the company recognized revenues of EUR 354.2 million, an
increase of 12.7 % after EUR 314.1 million in the prior-year period.
Revenues in the E-Commerce division with its 202 online shops increased
year-on-year by 13.2 %, from EUR 307.2 million to EUR 347.7 million.
In the third quarter, the company generated revenues of EUR 104.0 million
(Q314: EUR 88.1 million, +18.1 %). Q315 revenues in the E-Commerce division
increased 18.0 %, amounting to EUR 101.2 million.
Gross margin. Group COGS increased in the reporting period by +14.6 % from
EUR 235.1 million to EUR 269.4 million. 9M15 gross margin came in with 23.9
%, after 25.2 % in 9M14. The quarterly gross margin decreased from 26.1 %
in Q314 to 25.9 %.
Personnel expenses. On 30.09.2015, the company had a total of 145 employees
(30.09.2014: 257). In the reporting period on average 148 staff members
were employed at Delticom group (9M14: 266). Personnel expenses amounted to
EUR 7.3 million (9M14: EUR 11.4 million, -36.2 %). This decrease is mainly
due to the significant workforce reduction at Tirendo. The 9M15 personnel
expenses ratio stood at 2.1 % (staff expenditures as percentage of
revenues, 9M14: 3.6 %).
Other operating expenses. Other operating expenses amounted to EUR 81.2
million (9M14: EUR 68.2 million, +19.0 %).
Among the other operating expenses, transportation costs is the largest
line item. They rose in the reporting period from EUR 28.1 million to EUR
34.1 million. The 21.4 % increase comes along with the sales country-mix
and the higher business volume. The share of transportation costs against
revenues went up from 8.9 % in 9M14 to 9.6 % in 9M15.
Marketing. For the year so far, marketing expenses grew by 3.0 % to EUR
15.9 million (9M14: EUR 15.4 million), equating to a ratio of 4.5 % (9M14:
4.9 %). To push an early start into the winter season, marketing spent in
Q315 was increased from EUR 3.8 million to EUR 5.2 million. As a result,
Q315 marketing expense ratio with 5.0 % of revenues was higher than last
year's 4.4 %.
Depreciation. Depreciation for 9M15 rose by 12.6 % from EUR 6.2 million to
EUR 6.9 million. This increase was essentially due to extraordinary
depreciation on property, plant and equipment in H115, which was required
in relation to preparations for the closure of the Lehrte warehouse at the
end of the current financial year.
EBITDA. Earnings before interest, taxes, depreciation and amortization
(EBITDA) for the repor-ting period came in at EUR 8.6 million (9M14: EUR
8.0 million, +7.3 %). This equates to an EBITDA margin of 2.4 % (9M14: 2.5
%). EBITDA in the third quarter amounted to EUR 2.0 million, after EUR 1.8
million in Q314 (+10.4 %). Quarterly EBITDA margin stood at 1.9 % (Q314:
2.0 %).
Income taxes. In 9M15 the expenditure for income taxes was EUR 0.7 million
(9M14: EUR 2.1 million). This equates to a tax rate of 55.5 % (9M14: 175.5
%). The tax rate in the reporting period diverges from the normal tax rate
of the Delticom Group. This effect is due to non-deductible losses
resulting from the sale of all shares in Tyrepac Pte. Ltd., Singapore and
additions under trade tax law.
Net income. Consolidated net income totalled EUR 0.6 million after EUR -0.9
million in 9M14. Net income for Q315 amounted to EUR -0.1 million (Q314:
EUR -0.7 million). For the nine months, earnings per share (EPS) were EUR
0.05 (undiluted, 9M14: EUR -0.08).
Inventories. Among the current assets, inventories is the biggest line
item. Since the beginning of the year their value grew by EUR 43.4 million
to EUR 99.5 million (30.09.2014: EUR 117.4 million).
Receivables. Trade receivables usually follow the seasons, but reporting
date effects are often unavoidable. At the end of the quarter, the accounts
receivable amounted to EUR 25.4 million (30.09.2014: EUR 17.2 million).
Payables. In the wake of the inventory build-up, the accounts payable
increased from EUR 75.9 million at the beginning of the year by EUR 33.6
million to EUR 109.5 million (30.09.2014: EUR 117.8 million).
Cash flow and liquidity position. Mainly due to more funds tied up in net
working capital, the cash flow from ordinary business activities of EUR
-8.4 million for the period under review was lower than last year (9M14:
EUR 4.6 million).
In the reporting period Delticom invested EUR 0.7 million into property,
plant and equipment, after EUR 0.5 million the previous year. Investments
into intangible assets in 9M15 amounted to EUR 0.9 million (9M14: EUR 0.8
million). Further EUR 0.5 million (9M14: EUR 0.0 million) were invested
into financial assets. In total, the cash flow from investments was EUR
-2.0 million, after EUR -1.3 million the previous year.
In the reporting period, Delticom recorded a cash flow from financing
activities amounting to EUR 2.8 million, thereof the dividend payout for
the last financial year of EUR 3.0 million and disbursements due to
redemption of loans of EUR 2.6 million. The cash outflow was offset by
inflows from shortterm financial liabilities of EUR 8.5 million.
Liquidity (cash and cash equivalents plus liquidity reserve) as of
30.09.2015 totalled EUR 23.1 million (30.09.2014: EUR 24.7 million,
31.12.2014: EUR 29.9 million). The company's net cash position amounted to
EUR 9.8 million (liquidity less liabilities from current accounts,
30.09.2014: EUR -3.2 million).
Outlook.
Business at Delticom also benefited from the early start to the winter
season at the start of the current quarter. In early November, Delticom
raised its guidance for full-year revenues in the wake of an upturn in
revenue growth. On the basis of current planning, consolidated group
revenues will lie in a range of between EUR 530 million and EUR 540 million
on a full-year view. The business development in the remaining weeks of the
year is accompanied by a certain degree of uncertainty given the current
weather conditions. Revenues in November and December 2015 could fall short
of the previous year's level.
Until the end of the year, Delticom will continue to pursue its aim of
increasing sales volumes year on year and reducing inventories as planned.
If unit sales increase to a greater extent than revenues, a rise in sales
will not necessarily lead to an increase in earnings due to higher
volume-related costs.
Management therefore confirms the full-year guidance for earnings before
interest, taxes, depreciation and amortisation (EBITDA). Delticom is still
aiming to at least match EBITDA of the 2014 financial year in absolute
terms (EUR 15.3 million).
Drivers all over the world are discovering the benefits of buying their
tyres online from one of Delticom's online stores. Management therefore
continues to anticipate the acquisition of over one million new customers
for the Delticom Group in 2015 as a whole.
The full report for the first nine months 2015 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 200 online shops in 41 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 42,000 service partners (9,000 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]
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12.11.2015 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: Regulated Market in Frankfurt; Regulated Unofficial Market
in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart
End of News DGAP News Service
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412143 12.11.2015
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