13.11.2014
Delticom AG DE0005146807
DGAP-News: Delticom publishes 9-Monthly Report 2014
DGAP-News: Delticom AG / Key word(s): Quarter Results/9-month figures
Delticom publishes 9-Monthly Report 2014
13.11.2014 / 08:00
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Delticom publishes 9-Monthly Report 2014
Hanover, 13 November 2014 - 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 2014. In
the reporting period, the company recognized revenues of EUR 314.1 million,
an increase of 1.6 % (9M 13: EUR 309.1 million). EBITDA came in at EUR 8.0
million. This equates to an EBITDA margin of 2.5 %, after 3.9 % the
previous year.
Business in the third quarter
Following a significant increase in sales in the first quarter, the tyre
business already cooled considerably in the second quarter due to the
effects of customers purchasing tyres early on in the season. The first
three months of the second half of the year are typical of the transitional
period between the summer and the winter tyre business. After the business
with summer tyres had already cooled off in the second quarter, sales
performance also lagged behind expectations in the third quarter. According
to initial estimates by trade associations, 5 % fewer summer tyres were
sold in Germany in the third quarter. Persistent mild weather also had the
effect that drivers had not begun to switch from summer to winter tyres as
at the end of the reporting period. During the third quarter, one-third
fewer winter tyres were sold by German traders than in the same period of
the previous year. In the other countries that typically switch from summer
to winter tyres, the temperatures at the end of September were likewise too
warm for an early start to the season.
Revenues. In the third quarter, the company generated revenues of EUR 88.1
million (Q3 13: EUR 96.9 million, -9.1 %). In 9M 2014 the Delticom Group
recognized revenues of EUR 314.1 million, an increase of 1.6 % after EUR
309.1 million in the prior-year period. Revenues in the E-Commerce division
with its 144 online shops increased year-on-year by 2.5 %, from EUR 299.8
million to EUR 307.2 million.
Tirendo. Revenues of Tirendo for nine months 2014 amounted to EUR 21.8
million, a decrease of 14.7 % compared to the previous year (9M 13: EUR
25.6 million). The focus at Tirendo this year is on optimizing costs to
create a basis for a profitable growth course. The 46.8 % decline in
revenues in the third quarter, from EUR 8.1 million in Q3 13 to EUR 4.3
million, is partly due to weaker demand on account of the mild weather. The
drop is also attributable to the strategy of cutting advertising costs and
aligning them more flexibly to market conditions with a view to increasing
the efficiency of such measures in the future.
Since its acquisition, Tirendo has benefited from Delticom's strengths in
procurement and logistics. Tirendo's gross margin in the third quarter
amounted to 18.3 % (Q3 13: 13.9 %). Thanks to the improvement in margins
and a lower cost base, Tirendo's EBITDA stood at EUR -1.9 million in Q3 14,
which was 48.6 % higher than in the same period in the previous year (Q3
13: EUR -3.7 million).
New customers. In the reporting period, Delticom and Tirendo together
acquired a total of 643 thousand new customers (9M 13: 634 thousand,
Delticom excluding Tirendo, +1.5 %). Over the same period, 550 thousand
existing customers bought their tyres from the Delticom Group again.
Gross margin. Group COGS increased by +0.4 % from EUR 234.1 million in 9M
13 to EUR 235.1 million in 9M 14. Gross margin came in with 25.2 %, after
24.3 % the previous year. Despite the weak market environment, the
quarterly gross margin increased from 24.1 % in Q3 13 to 26.1 %.
Personnel expenses. Personnel expenses for nine months 2014 amounted to EUR
11.4 million (9M 13: EUR 7.0 million). The 9M 14 personnel expenses ratio
stood at 3.6 % (staff expenditures as percentage of revenues, 9M 13: 2.3
%).
On 30.09.2014, the company had a total of 257 employees, of which 154 were
employed at Delticom (including trainees) and 103 at Tirendo (including
interns). As at 30 June 2014, this number was much higher, totalling 300
employees. The integration of Tirendo was accompanied by a reduction in
staff numbers in the course of the third quarter.
Other operating expenses. Among the other operating expenses,
transportation costs is the largest line item. They increased in the
reporting period from EUR 27.2 million by 3.5 % to EUR 28.1 million. The
share of transportation costs against revenues went up from 8.8 % in 9M 13
to 8.9 % in 9M 14.
Marketing. For the year so far, marketing expenses grew by 49.1 % to EUR
15.4 million (9M 13: EUR 10.3 million), equating to a ratio of 4.9 % (9M
13: 3.3 %). This significant increase is mainly due to the EUR 6.1 million
additional marketing spend of Tirendo in the first nine months of the
current fiscal year. Q3 14 marketing expenses of 4.4 % of revenues were
higher than last year's 4.0 %.
EBITDA. Earnings before interest, taxes, depreciation and amortization
(EBITDA) for the reporting period came in at EUR 8.0 million (9M 13: EUR
12.0 million). This equates to an EBITDA margin of 2.5 % (9M 13: 3.9 %).
The negative result contribution from Tirendo during the first nine months
of 2014 comprises an important reason for the -33.3 % year-on-year decline
of group EBITDA.
Depreciation. Depreciation for 9M 14 rose by 174.1 % from EUR 2.2 million
to EUR 6.2 million. Main reason for this increase is the scheduled
depreciation of intangible assets. Depreciation from PPA amounted to EUR
4.0 million in the reporting period.
EBIT. EBIT for the reporting period came down by 81.3 % from EUR 9.7
million to EUR 1.8 million. This equates to an EBIT margin of 0.6 % (9M 13:
3.1 %).
Delticom excluding Tirendo. Delticom generated revenues of EUR 292.3
million in the reporting period, compared to EUR 306.2 million in 9M 13
(-4.5 %). EBITDA amounted to EUR 17.0 million, an increase of 31.7 % (9M
13: EUR 12.9 million). This corresponds to an EBITDA margin of 5.8 % (9M
13: 4.2 %).
Against the backdrop of a weak market environment, Delticom's revenues in
the third quarter decreased by 10.9 % to EUR 83.8 million (Q3 13: EUR 94.0
million). Despite the downturn in revenues, Delticom succeeded in raising
EBITDA significantly by 37.6 % in the third quarter.
Income taxes. The expenditure for income taxes amounted to EUR 2.1 million
in the reporting period (9M 13: EUR 3.5 million).
Net income. For the period under review, consolidated net income totalled
EUR -0.9 million after EUR 6.2 million the previous year. This negative
performance was primarily attributable to Tirendo's accumulated losses
after tax of EUR -9.8 million in 9M 14.
Inventories. Among the current assets, inventories is the biggest line
item. Since the beginning of the year their value grew by EUR 44.5 million
to EUR 117.4 million (31.12.2013: EUR 72.8 million, 30.09.2013: EUR 120.7
million). This corresponds to a share of 50.7 % of total assets
(31.12.2013: 41.1 %, 30.09.2013: 51.8 %).
Liquidity position. Liquidity (cash and cash equivalents plus liquidity
reserve) as of 30.09.2014 totalled EUR 24.5 million (30.09.2013: EUR 9.2
million, 31.12.2013: EUR 11.3 million). On 30.09.2014, the company's net
cash position amounted to EUR -3.2 million (liquidity less liabilities from
current accounts, 30.09.2013: EUR -16.6 million).
Outlook.
The fourth quarter is of central importance in terms of revenues and
profitability for the full year. This year, the switchover to winter tyres
only began to gather pace in mid-October in many regions. Although the
volume of incoming orders at Delticom and Tirendo has been significantly
higher in a year-on-year comparison since the second half of October, the
course of business in the fourth quarter will be impacted by the weather
conditions in Europe in the weeks ahead.
Given the unusually mild weather, the market situation in the first nine
months and the uncertain course of business in the fourth quarter, Delticom
has adjusted its full-year forecast for the current financial year. On the
basis of current planning, consolidated revenues will lie in a range of
between EUR 500 million and EUR 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 EUR 15 million and EUR
20 million in the 2014 financial year.
Tirendo. We will continue to improve cost structures and profitability at
Tirendo over the next few months.
Due to the fact that Tirendo is now fully integrated in the Delticom Group,
there will be further planned job cuts at Tirendo through to the end of the
current financial year. Starting next year, the crew in Berlin will consist
of a core team of about 20 employees. Operational activities will be mainly
outsourced to long-standing partners of Delticom, and existing processes in
the Group will be standardised and streamlined.
Advertising costs at Tirendo were reduced significantly in the third
quarter, and we intend to make additional cost savings and improve the
efficiency of our advertising measures in the months ahead.
With regard to the measures described above, we expect that Tirendo will
become break even during the course of the financial year ahead and will
make a positive contribution to the company's success in future.
The full report for the first nine months 2014 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 140 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. More than 200,000 car parts, including
motor oil, replacement parts and accessories, complement the product
portfolio.
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 40,000 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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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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