22.03.2018
Delticom AG DE0005146807
DGAP-News: Delticom AG: Delticom publishes annual report 2017
DGAP-News: Delticom AG / Key word(s): Final Results
Delticom AG: Delticom publishes annual report 2017
22.03.2018 / 15:40
The issuer is solely responsible for the content of this announcement.
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Delticom publishes annual report 2017
Hanover, 22 March 2018 - 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 667.7
million over the course of 2017, an increase of 10.1 % from prior-year's EUR
606.6 million. With that, Delticom achieved the highest revenues in the
history of the company. EBITDA for the reporting period decreased from EUR
15.1 million to EUR 9.3 million. The substantial fall in EBITDA of 38.4 %
comes largely on the back of the approach increasingly pursued in 2017 of
gaining market shares in European tyre retailing. Earnings per share stood
at EUR 0.09 (diluted and undiluted; 2016: EUR 0.36), a decrease of 75.1 %.
H2 17: Changing weather conditions
Market environment. The cold temperatures at the start of October were
favourable for an early start into winter tyre business before a strong high
pressure in the second ten days of October brought unusually warm
temperatures. The winter tyre business reached its seasonal peak on the back
of cooler temperatures in the second third of November. In December, there
was a mix of mild and cold weather spells with snowfall down to lower
levels. Market experts anticipate that German tyre retailers sold overall
1.3 % more passenger car winter tyres to consumers last year. In contrast to
previous years, the 4x4 tyre segment, which was previously reported
separately, is now also included in the market data for the German passenger
car replacement tyre market.
Revenues. The company managed sales in its online shops during the second
half of the year in accordance with its shipments planning for the 2017
financial year. Revenues came in at EUR 370.6 million in the second half of
the year, up 11.8 % year on year (H2 16: EUR 331.4 million).
EBITDA. In the second half of the year, an EBITDA of EUR 4.3 million was
achieved, following EUR 8.9 million in H2 16 (-51.9 %). As a result, the
EBITDA margin achieved in the second half of the year came in at 1.2 %
compared to 2.7 % in the same period of the previous year.
Fiscal year 2017
Due to the increasing demand for all-weather tyres and 4x4 off-road tyres,
sales in German passenger vehicle replacement tyres business (including 4x4)
were slightly up on previous year by 0.6 % according to industry
associations.
In a market environment characterized by consolidation, Delticom was able to
draw on its flexibility, long-term market and E-Commerce knowledge and solid
earnings situation to further expand its market leading position in European
online tyre retailing. Thanks to the international orientation of the
business and the expansion of our product and service range, we are able to
increasingly offset specific market developments in individual countries.
Revenues. Over the course of 2017, Delticom group generated revenues of EUR
667.7 million, an increase of 10.1 % from prior-year's EUR 606.6 million.
Gross margin. The gross margin (trade margin ex other operating expenses)
for the full year was 20.6 % after 23.2 % in the prior-year period.
Personnel expenses. In the reporting period on average 185 staff members
were employed at Delticom Group (previous year: 156). Personnel expenses
amounted to EUR 10.9 million (2016: EUR 10.1 million). The company hired
additional staff in the past year due to the expansion of business
activities and the high number of strategic projects within the Delticom
Group. The personnel expenses ratio (staff expenditures as percentage of
revenues) remained with 1.6 % nearly unchanged compared to the previous year
(2016: 1.7%).
Other operating expenses. Among the other operating expenses, transportation
costs are the largest line item. The 3.9 % increase in transportation costs
from EUR 60.4 million to EUR 62.7 million reflects the higher business
volumes and the country-mix. The share of transportation costs against
revenues went down from 9.9 % in 2016 to 9.4 % in 2017.
Rents and overheads. Rents and overheads increased by 10.2 % in 2017, from
EUR 6.0 million to EUR 6.6 million. This rise largely resulted from the
rental of an additional warehouse from mid-2017 which temporarily stores the
tyres purchased before the season until their sale. In addition, the
ancillary expenses for the properties rented by the company increased year
on year. The company is planning to cease renting a warehouse outside of
Hanover from the middle of the current fiscal year.
Marketing. In the reporting period, costs for advertising totalled EUR 28.2
million, after EUR 26.0 million in 2016. This represents a marketing expense
ratio (marketing expenses as a percentage of revenues) of 4.2 % (2016: 4.3
%). In addition to the online shops, Delticom is increasingly making use of
other online sales channels. Part of the increased costs resulted from
corresponding sale commissions and listing fees from the various portals
used. In addition, the company invested in establishing the brands of
start-ups within the Delticom Group last year.
Financial and Legal. Expenses for finance and legal fees amounted to EUR 4.7
million in the period under review (2016: EUR 4.8 million), a decrease of
4.0 %. Increased insurance costs and external consulting costs in connection
with setting up and aligning the start-ups were offset by the
discontinuation of legal and consulting costs which were incurred in 2016 as
part of the acquisitions.
EBITDA. EBITDA for the reporting period decreased from EUR 15.1 million to
EUR 9.3 million. The EBITDA margin for the fiscal year stood at 1.4 % (2016:
2.5 %). The substantial fall in EBITDA of 38.4 % during the reporting period
comes largely on the back of the approach increasingly pursued in 2017 of
gaining market shares in European tyre retailing by implementing varying
levels of value for money in the different online shops operated by the
company.
Depreciation. Depreciation for 2017 fell by 7.8 % from EUR 7.8 million to
EUR 7.2 million. Amortization of intangible assets totalled EUR 5.0 million
(2016: EUR 5.4 million). This largely encompasses the scheduled amortization
of the acquired intangible assets from the efood and logistics companies as
well as from Tirendo. The amortization of intangible assets from the latter
will cease at the end of the current financial year. Depreciation on
property, plant and equipment totalled EUR 2.2 million in the period under
review (2016: EUR 2.4 million).
EBIT. EBIT decreased in the reporting period by 71.8 % to EUR 2.0 million
(2016: EUR 7.2 million). This equates to an EBIT margin of 0.3 % (2016: 1.2
%).
Income taxes. In 2017 the expenditure for income taxes was EUR 0.5 million
(2016: EUR 2.1 million). This equates to a tax rate of 32.5 % (2016: 32.5
%).
Consolidated net income. Consolidated net income in the financial year 2017
decreased from EUR 4.5 million to EUR 1.1 million. This corresponds to
earnings per share (EPS) of EUR 0.09 (diluted and undiluted, 2016: EUR
0.36), a decrease of 75.1 %.
Dividend. At Delticom's Annual General Meeting on 08.05.2018, the Management
Board and the Supervisory Board will propose a dividend of EUR 0.10 per
share (2016 of EUR 0.50 per share) - less than in the previous year. By
rounding up to the next full 10 cents, the dividend distributed is slightly
higher than the consolidated net income achieved in 2017. The for the
dividend payout relevant earnings of Delticom AG for the past financial year
came in at EUR 5.2 million, which represents earnings per share of EUR 0.42,
substantially higher than the Group consolidated net income. In addition,
the Group recorded a free cash flow of EUR 8.0 million in the past financial
year. The dividend proposal is based on the finance and investment planning
for the current fiscal year.
Inventories. Among the current assets, inventories are the biggest line
item. Since the beginning of the year their value went up by EUR 17.1
million to EUR 79.8 million (31.12.2016: EUR 62.7 million). This increase is
mainly attributable to an earlier stockpiling for the upcoming summer season
compared to the previous year. At the onset of the winter quarter the
inventory value totalled EUR 107.4 million, EUR 10.0 million higher than the
previous year's figure of EUR 97.5 million. Thanks to the strong winter
season we were able to sell most of the tyres bought in the preceding
quarters.
Liquidity. Cash and cash equivalents registered net outflows of EUR 2.8
million. On 31.12.2017 liquidity totalled EUR 3.9 million (prior year: EUR
6.7 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.
Financial liabilities. During the reporting period, Delticom reduced
short-term financial liabilities by EUR 4.7 million. Long-term financial
liabilities were increased by EUR 0.1 million. The sum total of non-current
and current financial liabilities amounted to EUR 15.3 million on the
reporting date, reflecting a decrease of EUR 4.6 million in a balance sheet
date comparison (31.12.2016: EUR 19.9 million). The comparatively low
proportion of interest-bearing financial liabilities in the total assets
(31.12.2017: 7.6 %, 31.12.2016: 10.9 %) underscores the company's strong
internal financing capability.
Outlook.
Delticom - Europe's leading online retailer for tyres and automotive
accessories as well as efood specialist and expert in the field of efficient
warehouse logistics - will continue to benefit from the increasing
importance of the Internet as a sales channel in the future. Based on the
current market environment and experience over the last two years, in the
current financial year, we are aiming to fine-tune the balance between
revenues growth and profitability. We are also focusing on continuing to
establish the start-ups in the company portfolio within the market in an
effort to offer our customers additional services in future. At the current
point in time, we are forecasting consolidated revenues of EUR 690 million
for the current year accompanied by an increase in EBITDA to around EUR 14
million.
The full report for fiscal year 2017 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 and in trans-national E-Commerce. In addition to
design, Delticom also provides product descriptions and a comprehensive
customer service program in your national language. 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 2017, Delticom AG generated sales in excess of EUR 667 million. The
E-Commerce specialist operates in 72 countries with over 453 online shops
and online distribution platforms, serving over 12.2 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
Phone.: +49(0)511-936 34-8903
Fax: +49 (0)89-208081147
Email: [email protected]
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22.03.2018 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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667635 22.03.2018
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