14.11.2016
Delticom AG DE0005146807
DGAP-News: Delticom AG: Delticom publishes Q3 business development
DGAP-News: Delticom AG / Key word(s): 9-month figures
Delticom AG: Delticom publishes Q3 business development
14.11.2016 / 09:07
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Delticom publishes Q3 business development
- Revenues growth 9M 16: +11 %, Q3 16: +13 %
- Record temperatures in September delay season start
- Good winter business start in Q4
- Full-year guidance unchanged: Revenues EUR 620-630 million, EBITDA EUR 16
million
Hanover, November 14, 2016 - Delticom (WKN 514680, ISIN DE0005146807,
ticker symbol DEX), Europe's leading online retailer of tyres and
accessories as well as an efood specialist, publishes the key points of its
business trends in the third quarter 2016 with this interim announcement.
Market environment
September 2016 was a decidedly warm, dry and very sunny start to the autumn
(meteorological autumn: September to November). Together with 2006, it was
the warmest September to date since geographically comprehensive records
began in 1881. Summer returned to the whole of Germany between September
9th and 15th. Warm days with temperatures even above 30 Celsius (°C) were
often observed. After a cooler phase, temperatures during the last third of
the month climbed again to summer-like temperatures of 25 C and above in
some areas. (Source: German Weather Service / Deutscher Wetterdienst, DWD)
Given these conditions, the replacement tyres business in the third quarter
in Germany failed to benefit from an early start to the winter season. Many
motorists did not become directly aware of the need for new winter tyres
until October when sustained cold temperatures set in and road conditions
became more difficult. In September 2015, by contrast, ground temperatures
had already fallen to persistently below the 7 C level from mid-month in
many locations, prompting various motorists to refit winter tyres to their
vehicles.
Market experts estimate that 20 % fewer winter tyres were in demand in
German tyre retailing in September than in the previous year's month, so
that cumulative winter tyre sales were down 5 % during the first nine
months of the year. For the summer tyres business, initial preliminary
estimates following a weak first half-year with an almost 10 % reduction in
shipments also indicate year-on-year lower unit sales to domestic consumers
in the third quarter. The decrease in the summer tyre business was
mitigated by higher demand for all season tyres. For passenger car summer
tyres, including all season tyres, experts estimate shipments in Germany
between January and September 5 % lower than in the equivalent 2015 period.
It is assumed that the car replacement tyres business in German tyre
retailing was down almost 5 % year-on-year in volume terms during the first
nine months.
Business performance and earnings situation
During the first nine months of the current financial year, the Delticom
Group achieved revenues of EUR 393 million, an increase of 11 % compared
with the previous year (9M 15: EUR 354 million).
More than 780 thousand new customers made first-time purchases at one of
Delticom online shops in the first nine months of 2016, reflecting an
increase of more than 60 thousand new customers (9M 15: 717 thousand).
Moreover, the company recorded repeat sales to almost 670 thousand existing
customers (9M 15: 643 thousand, +4 %), with its extensive product and
service offering thereby proving persuasive.
Gross profit amounted to EUR 104 million in 9M 16 (9M 15: EUR 97 million, +
7 %), equivalent to a 26 % margin on total operating income (9M 15: 27 %).
In the third quarter, the company advanced its unit sales faster than
revenues. Not least, this success came along with various marketing
measures highlighting the early buyer offer in Delticom online shops. The
foundations were also laid in Q3 16 for the planned and now-emerging
revenues growth in the final quarter. Due to marketing expenses incurred in
advance and price effects, EBITDA for the first nine months of 2016 was
lower than in the corresponding 2015 period. As a transition quarter
between the summer and winter business, Q3 earnings trend is only of
comparatively minor importance for full-year profitability. The same holds
true for the first quarter of a year. Weather-related shift effects are not
unusual in the tyres business. Making statements with any certainty about
the progress of the season is generally only possible after the respective
seasonal peak has been reached. Delticom will provide detailed information
about the course of its winter business, and accordingly about its full-
year results, with the presentation of its annual report. The seasonal
trends and results of the summer business will be presented in detail in
the half-year report.
Financial position
Inventories comprise the largest item among current assets. Standing at EUR
98 million on the reporting date, they were almost at the previous year's
level (30.09.2015: EUR 100 million, 31.12.2015: EUR 62 million).
Trade receivables amounted to EUR 28 million at the end of the past quarter
(30.09.2015: EUR 26 million, 31.12.2015: EUR 19 million).
Comparing balance sheet dates, trade payables rose from EUR 110 million on
30.09.2015 to EUR 120 million as of 30.09.2016 due to closing-date effects
(31.12.2015: EUR 78 million).
Liquidity (cash and cash equivalents plus liquidity reserve) stood at EUR 7
million as of the quarter-end (30.09.2015: EUR 23 million, 31.12.2015: EUR
12 million). Net liquidity amounted to EUR -15 million on the reporting
date (30.09.2015: EUR 10 million, 31.12.2015: EUR 7 million). The company
utilizes the credit lines at its disposal for the intra-year financing of
its stockbuilding. These credit lines were repaid in full in mid-October.
At seasonal peaks, we deploy current and low-risk money market instruments
for operating activities.
Balance sheet total stood at EUR 223 million as of 30.09.2016 (30.09.2015:
EUR 215 million, 31.12.2015: EUR 160 million). During the course of the
third quarter, the purchase price allocation for the food companies
acquired in February this year was finalized. The food goodwill amounts to
EUR 1.1 million.
Fourth-quarter business
October was the first abnormally cold month in 2016 in Germany. The average
temperature of 8.6 C was 0.4 C below the internationally relevant
reference period of 1961 to 1990. The deviation amounted to -0.6 C
compared with the warmer period between 1981 and 2010. The transition from
warm Indian summer weather to unpleasantly cool autumn weather was already
evident in early October. On October 1, for example, Dresden-Strehlen
recorded Germany's highest temperature of 24.7 C. Just two days later, the
thermometers there registered a chilly level of just 13.7 C. During the
final days of the first half of the month, temperatures in some parts of
Germany plunged to nighttime frost levels under the impact of the unusually
strong high-pressure area in Scandinavia (the "Peter"): on October 13, the
DWD recorded -4.9 C in Oberstdorf, the lowest figure for October across
the whole of Germany. In the afternoon of October 24, by contrast,
Oberstdorf registered a summer-like 23.1 C with assistance from the alpine
"föhn" wind. (Source: DWD)
In the fourth quarter of the previous year, winter business had already
reached its seasonal high by mid-October, due to the uncommonly early onset
of winter, with snowfalls well into lower altitudes. For 2016, it is
currently assumed that winter tyre shipments in German tyre retailing are
down by more than 10 % year on year during the first ten months. Despite
the lack of stimulus from snow, shipments and revenues of the Delticom
Group in October are up on the previous year's month, as well as EBITDA.
The management assumes that the company will continue to achieve good
revenues and earnings in the weeks remaining until the year-end.
Full-year outlook
The fourth quarter plays a central role in terms of revenues and earnings
for the full-year. This is true not only for the tyres business, but also
for efood and logistics due to pre-Christmas business.
Despite the year-on-year delayed start to the winter tyres business, the
management continues to expect to reach consolidated revenues of between
EUR 620-630 million and group EBITDA of EUR 16 million in the current
financial year.
Company profile:
Delticom is Europe's leading online retailer of tyres and automotive
accessories. Founded in 1999, the Hannover-based company operates more than
300 online shops and websites in 41 countries, including ReifenDirekt in
Germany, Austria and Switzerland. The Delticom Group also owns the shops of
Tirendo. The broad product range for private and corporate customers
comprises more than 100 brands and more than 25,000 models of tyres for
cars, motorbikes, trucks, commercial vehicles and buses, as well as
complete wheels.
Customers enjoy all the benefits of modern e-commerce: easy ordering at
home, a high ability to supply, and, not least, attractive prices. Goods
are delivered within two working days on average, either to a customer's
home address or an alternatively designated address. Customers can also
have their tyres delivered to one of more than 44,000 service partners
worldwide (with 9,600 in Germany alone), which provide professional and
cost-effective tyre fitting services for the Group's customers. More than
300,000 new vehicle parts, including motor oils, automotive spare parts and
automotive accessories round out the product range.
In the efood area, Delticom AG is a leader in automated logistics processes
and offers a comprehensive range of foodstuffs: a total of 17,000 articles
are available in the gourmet online supermarket Gourmondo.de alone.
Website: www.delti.com
Contact:
Delticom AG Investor Relations
Melanie Gereke
Brühlstrasse 11
30169 Hannover
Tel.: +49 (0)511-936 34-8903
Fax: +49 (0)511-936 89-208081147
Email: [email protected]
---------------------------------------------------------------------------
14.11.2016 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
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, Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
520237 14.11.2016
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Delticom AG ISIN: DE0005146807 können Sie bei EQS abrufen
E-Commerce , 514680 , DEX , XETR:DEX