23.03.2017
Delticom AG DE0005146807
DGAP-News: Delticom AG: Delticom's revenues in 2016 surpassed the mark of EUR 600 million for the first time
DGAP-News: Delticom AG / Key word(s): Final Results
Delticom AG: Delticom's revenues in 2016 surpassed the mark of EUR 600
million for the first time
23.03.2017 / 08:26
The issuer is solely responsible for the content of this announcement.
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Delticom's revenues in 2016 surpassed the mark of EUR 600 million for the
first time
Hanover, 23 March 2017 - Delticom (German Securities Code (WKN) 514680, ISIN
DE0005146807, stock market symbol DEX), Europe's leading online retailer of
tyres and automotive accessories as well as efood specialist and expert in
the field of efficient warehouse logistics generated revenues of EUR 606.6
million over the course of 2016, an increase of 8.4 % from prior-year's EUR
559.8 million. With that, Delticom achieved the highest revenues in the
history of the company. EBITDA for the reporting period increased from EUR
14.3 million to EUR 15.1 million. The 5.5 % rise resulted principally from
the cost savings achieved in marketing expenses and rents that served to
compensate for the higher level of revenue and volume-induced costs.
Earnings per share stood at EUR 0.36 (diluted and undiluted; 2015: EUR
0.28), an increase of around 28 %.
H2 16: Summerlike temperatures
Market environment. Continuing warm weather in September prevented an early
start to the winter season in 2016. Consequently, according to the WdK,
German tyre retailers sold 20 % fewer winter tyres to consumers in September
and 15 % fewer in October compared to the corresponding months of the
previous year. Despite the catch up affect in November, the WdK is
estimating the retail sale of winter tyres to consumers for the full year to
be 2.7 % lower than the comparable period in 2015.
Revenues. The company managed sales in its online shops during the second
half of the year in accordance with its shipments and results planning for
the 2016 financial year. Revenues came in at EUR 331.5 million in the second
half of the year, up 7.1 % year on year (H2 15: EUR 309.6 million).
EBITDA. In the second half of the year, the company raised EBITDA by 15.6 %
from EUR 7.7 million to EUR 8.9 million, which corresponds to an EBITDA
margin of 2.7 % in H2 16 (H2 15: 2.5 %).
Fiscal year 2016
In the fiscal year elapsed, the hopes of many tyre dealers for a trend
reversal were dashed again: Selling tyres to consumers in Germany once again
proved to be in decline. While, in its initial estimates, the German Tyre
Retailer and Vulcanization Trade Association (BRV) assumes a downturn in the
sales volume of 1 % in the most important segment of car tyres, the German
Rubber Industry Trade Association (WdK) puts the decrease at almost 3 %.
Contrary to this general market trend, Delticom succeeded in raising
revenues in its core business. Through the entry into the efood business and
the associated enhancing of the logistics know-how, also through the
acquisition of the material assets of French car dealer AutoPink, the
company has developed further analog business lines for the world of
electronic trading.
Revenues. Over the course of 2016, Delticom group generated revenues of EUR
606.6 million, an increase of 8.4 % from prior-year's EUR 559.8 million.
Gross margin. The gross margin (trade margin ex other operating expenses)
for the full year was 23.2 % after 23.6 % in the prior-year period.
Personnel expenses. In the reporting period on average 156 staff members
were employed at Delticom group (previous year: 129). Personnel expenses
amounted to EUR 10.1 million (2015: EUR 9.5 million). The personnel expenses
ratio (staff expenditures as percentage of revenues) remained with 1.7 %
nearly unchanged compared to the previous year (2015: 1.7 %).
Other operating expenses. Among the other operating expenses, transportation
costs is the largest line item. The 11.5 % increase in transportation costs
from EUR 54.1 million to EUR 60.4 million reflects the higher business
volumes and the country-mix. The share of transportation costs against
revenues went up from 9.7 % in 2015 to 9.9 % in 2016.
Rents and overheads. Rents and overheads decreased in 2016 by 17.7 %, from
EUR 7.2 million to EUR 6.0 million. Since February of the previous year, the
company has also operated a cutting-edge small item warehouse alongside the
two tyre warehouses. Cost savings of EUR 1.3 million achieved in 2016
resulted from the scheduled closing of a tyre warehouse at the end of fiscal
2015.
Marketing. In the reporting period, costs for advertising totalled EUR 26.0
million, after EUR 27.2 million in 2015. This represents a marketing expense
ratio (marketing expenses as a percentage of revenues) of 4.3 % (2015: 4.9
%).
Financial and Legal. Expenses for finance and legal fees amounted to EUR 4.8
million in the period under review (2015: EUR 4.1 million). The increase of
EUR 0.8 million or 19.6 % essentially resulted from non-recurrent costs of
EUR 0.6 million for legal and consultancy fees in connection with acquiring
the efood and logistics companies.
EBITDA. EBITDA for the reporting period increased from EUR 14.3 million to
EUR 15.1 million. The 5.5 % rise resulted principally from the cost savings
achieved in marketing expenses and rents that served to compensate for the
higher level of revenue and volume-induced costs. The EBITDA margin for the
fiscal year stood at 2.5 % (2015: 2.6 %). Excluding non-recurrent costs of
EUR 0.6 million for legal and consultancy fees incurred in connection with
the acquisition in February 2016, full-year EBITDA would have been
proportionately higher.
Depreciation. Depreciation for 2016 fell by 9.6 % from EUR 8.7 million to
EUR 7.8 million. The decline of EUR 0.8 million resulted mainly from the
non-recurrence of impairment write-downs: In preparation for the closure of
a warehouse in 2015, Delticom applied an impairment loss of EUR 950 thousand
to sorting and packaging machines deployed at this warehouse location.
The additional PPA depreciation on the aquired assets of the efood and
logistics companies are fully compensated by PPA depreciation on sales and
similar rights from Tirendo ceased at the end of fiscal 2015.
EBIT. EBIT increased in the reporting period due to lower depreciation by
+28.9 % to EUR 7.2 million (2015: EUR 5.6 million). This equates to an EBIT
margin of 1.2 % (2015: 1.0 %).
Income taxes. In 2016 the expenditure for income taxes was EUR 2.1 million
(2015: EUR 1.8 million). This equates to a tax rate of 32.5 % (2015: 35.1
%).
Consolidated net income. Consolidated net income for 2016 rose from EUR 3.4
million to EUR 4.5 million. This corresponds to earnings per share (EPS) of
EUR 0.36 (diluted and undiluted, 2015: EUR 0.28, +27.6 %).
Dividend. At Delticom's Annual General Meeting on 02.05.2017, the Management
Board and the Supervisory Board will propose a dividend of EUR 0.50 per
share - unchanged compared to the dividend for financial year 2015 of EUR
0.50 per share.
Inventories. Among the current assets, inventories is the biggest line item.
Since the beginning of the year their value went up by EUR 0.9 million to
EUR 62.7 million (31.12.2015: EUR 61.8 million). The slight increase is
mainly attributable to the additional stocks in the small item warehouse,
including those of Gourmondo. At the onset of the winter quarter the
inventory value totalled EUR 97.5 million, EUR 2.1 million lower than the
previous year's figure of EUR 99.5 million. Despite mild weather conditions
we were able to sell most of the tyres bought in the preceding quarters.
Liquidity. Cash and cash equivalents registered net outflows of EUR 4.8
million. On 31.12.2016 liquidity totalled EUR 6.7 million (prior year: EUR
11.5 million). Owing to the seasonal nature and the payment terms and
conditions in tyre retailing, liquidity is subject to significant
fluctuations over the course of the year. Delticom Group had cash and cash
equivalents of EUR 60 million at the seasonal peak of business in 2016.
Financial liabilities. During the reporting period, Delticom reduced
long-term financial liabilities of EUR 3.8 million to 7.2 million
(31.12.2015: EUR 10.9 million). The increase of financial liabilities of EUR
4.8 million to EUR 19.9 million (31.12.2015: EUR 15.1 million) is a result
of the use of short-term credit lines as of the balance sheet day. The
comparatively low proportion of interest-bearing financial liabilities in
the total assets (31.12.2016: 11.0 %, 31.12.2015: 9.4 %) underscores the
company's strong internal financing capability. Delticom did not enter into
any long-term borrowing following the acquisition.
Outlook.
For the current business year, the Delticom group anticipates full year
sales of EUR 650 million, accompanied by an increase in EBITDA to at least
EUR 16 million. At the present time, there is still uncertainty regarding
the development of the European replacement tyre markets in the current
year. We are planning an increase in group sales for the current year of
more than 7 % compared to the previous year. Irrespective of additional
costs for expanding new areas of business, the company plans to maintain the
EBITDA margin at last year's level.
Against the backdrop of the steadily increasing popularity of the Internet
as a retail channel, Delticom will also benefit from the steadily increasing
E-Commerce trend in the medium term. The expansion of our product range and
the launch of new online shops in other countries, combined with our many
years of E-Commerce distribution competence, offer further potential for
growth in future.
The full report for fiscal year 2016 stands ready for download within the
"Investor Relations" section of the website www.delti.com.
Company profile:
Delticom AG is an E-Commerce company operating primarily in Europe and the
USA. It specialises in the design and operation of online shops,
Internet-based customer acquisition, internet marketing, developing partner
networks and complex, highly efficient product picking and distribution
logistics.
Delticom AG is the leading online distributor of tyres and automotive
accessories. Our product range also includes the online second-hand vehicle
trade and efood. Delticom has extensive experience in creating shops for the
international market. In addition to design, Delticom also provides product
descriptions and a comprehensive customer service programme in your national
language. Our expertise in trans-national E-Commerce and establishing
efficient warehousing and logistics processes is utilised not only in
selling tyres, used vehicles and online grocery shopping, but is also
offered to third parties as an additional service.
Since its establishment in Hanover, Germany in 1999, the company has accrued
exceptional expertise in designing efficient, fully integrated internal
ordering and logistics processes. The company owns its own warehouses,
including a fully automated small item warehouse.
In 2016, Delticom AG generated sales in excess of EUR 600 million. The
E-Commerce specialist operates in 68 countries with over 380 onlineshops and
online distribution plattforms, serving over 10 million customers. The range
of tyres offered to retail and commercial customers includes over 100 brands
and more than 25,000 models of sedans, motorbikes, trucks, utility vehicles,
buses and complete wheel sets. Customers are also able to have the ordered
products sent to one of the 43,000 service partners of Delticom AG around
the world.
Our range also encompasses over 300,000 automotive parts and accessories,
including motor oils, snow chains and batteries. Entry into the business of
online used car selling has rounded off the automotive offering. In this
sense, Delticom AG has developed from a classic online retailer to an online
solutions provider. Delticom AG also now offers a comprehensive range of
around 20,000 different food items.
The shares of Delticom AG have been listed in the Prime Standard of the
German Stock Exchange since October 2006 (ISIN DE0005146807).
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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23.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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 (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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557351 23.03.2017
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