Hanover, 09 August 2011 – Delticom (German Securities Code (WKN) 514680, ISIN
DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, has published its semi-annual report 2011 today. Revenues in the first six months of 2011 increased by 11.8% to EUR 198.3 million and EBIT by 12.6% to EUR 18.7 million. EBIT margin remains unchanged at 9.4% (H110: 9.4%). Consolidated net income for the period grew from EUR 11.3 million to EUR 12.7 million. This corresponds to earnings per share (EPS) of EUR 1.08 (undiluted, H110:EUR 0.95), a step-up of 13.0%. For 2011, Delticom AG’s management continues to anticipate an increase in revenues of approximately 10%, with an EBIT margin around one percent lower than in 2010.
The complete report for the first six months of 2011 can be downloaded from the website www.delti.com within the "Investor Relations" area.
Company profile:
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 40 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and
accessories, motor oil and batteries. The independent website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 28,000 service partners – affiliated garages which take delivery of tyres and then install these
on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically and abroad.
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch
Contact:
Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49 (0)511-936 34-8903
Fax: +49 (0)89-208081147
Email: melanie.gereke@delti.com
Tyrepac was founded in Singapore in 2008, and is Asia's first and South East Asia's largest online tyre retailing website. Tyrepac offers a comprehensive range of tyres, with transparent pricing, and convenience from more than 2,700 fitting locations in Asia. Tyrepac also provide quotations for battery, automotive insurance, and servicing packages in collaboration with its service partners.
Showing posts with label Delticom. Show all posts
Showing posts with label Delticom. Show all posts
Wednesday, August 10, 2011
Tuesday, April 19, 2011
Delticom AG: Q1 2011 on track
Hanover, 19 April 2011 – Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, looks back on another successful quarter. According to todays preliminary figures, revenues in the first quarter of 2011 increased by 14.6% to € 85.4 million and EBIT by 4.6% to € 6.1 million. EBIT margin decreased to 7.2% (Q110: 7.9%). Earnings per share grew 4.8% to € 0.35.
Due to a lower amount of snowfall this winter, sales were initially weaker than in the previous year. On top of this, Easter does not fall until the second half of April this year; traditionally, many drivers change to their summer tyres before this holiday. Last year, business in March was able to benefit from this effect, whereas this year will see relatively more summer tyre sales happen in the second quarter. However,demand did not gather significant momentum until springlike temperatures took hold in March.
Revenues. In spite of of the previous year's basis, Delticom was able to generate revenues of € 85.4 million, a plus of 14.6% from prior-year's € 74.5 million. Revenues in the E-Commerce division were up year-on-year by 13.9%, from € 70.7 million to € 80.5 million. The revenues of the Wholesale division lifted by 28.6% to € 4.8 million, after prior-year revenues of € 3.7 million. Other operating income increased in Q111 by 3.1% to € 1.3 million (previous year: € 1.3 million).
Gross profit. The cost of sales increased in the reporting period by 15.0%, from € 54.8 million in 2010 to € 63.0 million. In an environment of rising purchasing prices and further supply bottlenecks, Delticom was to a good extent able to cushion the hikes by purchasing early. As a result, the gross profit advanced in the reporting period by 13.0% year-on-year, from € 21.0 million to € 23.7 million. The gross profit margin (gross profit in relation to total income) decreased from 27.7% to 27.3%.
Personnel expenses. In the reporting period on average 108 staff members were employed at Delticom (Q110: 94). Personnel expenses amounted to € 1.7 million (previous year: € 1.6 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) remained almost unchanged (2.0%, Q110: 2.1%).
Other operating expenses. Overall the other operating expenses totalled € 15.4 million in the past quarter, an increase of € 2.2 million or 16.7% over the prior-year value of € 13.2 million.
Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from € 6.4 million by 5.8% to € 6.8 million. The share of transportation costs against revenues decreased from 8.6% in Q110 to 7.9% in Q111, partly driven by relatively stronger revenue growth coming from higher selling prices.
Marketing expenses amounted to € 2.0 million, after € 1.7 million in Q110. Although this represents an increase of 17.0%, the relationship to revenues remained on a level with last year, with a share of 2.3%.
Depreciation. In line with the gradual expansion of warehouse capacity and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.6% from € 0.3 million in Q110 to € 0.4 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.
Earnings performance. Although EBIT had risen steeply in the first quarter of last year (+122.3%), EBIT for Q111 saw a year-on-year increase once again, by 4.6% to € 6.1 million (Q110: € 5.9 million). This translated to an EBIT margin of 7.2% (Q110: 7.9%).
The continually low Euro money market rates led to a poor financial result of € 39 thousand (Q110: € 26 thousand). The expenditure for income taxes was € 2.0 million (previous year: € 1.9 million). The tax rate of 32.2% was almost flat at the previous year's level.
Consolidated net income for the period grew from € 4.0 million to € 4.2 million. This corresponds to earnings per share (EPS) of € 0.35 (undiluted, Q110: € 0.34), a step-up of 4.8%.
Cash flow and liquidity position. Following the reversal of year-end effects and the scheduled buildup of stock levels to € 83.3 million (31.12.2010: € 51.7 million), net working capital increased to € 23.7 million (31.12.2010: € 1.3 million). As a consequence, cash flow from ordinary business activities (operating cash flow) for the period under review came in lower than last year, at € –18.5 million (Q110: € 4.7 million). Delticom's reporting-date liquidity amounted to € 47.5 million; it was slightly higher than in the previous year (31.03.2010: € 45.0 million).
Frank Schuhardt (CFO) is satisfied with the progress of business so far: “The success seen in the equivalent quarter of last year placed the bar very high. So of course that makes me all the more pleased to see that Delticom has managed to once again increase revenues and its result. We’re absolutely on track.” For 2011, Delticom AG’s management continues to anticipate an increase in revenues of approximately 10%, with an EBIT margin around one percent lower than in 2010.
The full report for the first quarter of 2011 will be published by Delticom AG on 10 May 2011 on its website www.delti.com within the "Investor Relations" section.
Due to a lower amount of snowfall this winter, sales were initially weaker than in the previous year. On top of this, Easter does not fall until the second half of April this year; traditionally, many drivers change to their summer tyres before this holiday. Last year, business in March was able to benefit from this effect, whereas this year will see relatively more summer tyre sales happen in the second quarter. However,demand did not gather significant momentum until springlike temperatures took hold in March.
Revenues. In spite of of the previous year's basis, Delticom was able to generate revenues of € 85.4 million, a plus of 14.6% from prior-year's € 74.5 million. Revenues in the E-Commerce division were up year-on-year by 13.9%, from € 70.7 million to € 80.5 million. The revenues of the Wholesale division lifted by 28.6% to € 4.8 million, after prior-year revenues of € 3.7 million. Other operating income increased in Q111 by 3.1% to € 1.3 million (previous year: € 1.3 million).
Gross profit. The cost of sales increased in the reporting period by 15.0%, from € 54.8 million in 2010 to € 63.0 million. In an environment of rising purchasing prices and further supply bottlenecks, Delticom was to a good extent able to cushion the hikes by purchasing early. As a result, the gross profit advanced in the reporting period by 13.0% year-on-year, from € 21.0 million to € 23.7 million. The gross profit margin (gross profit in relation to total income) decreased from 27.7% to 27.3%.
Personnel expenses. In the reporting period on average 108 staff members were employed at Delticom (Q110: 94). Personnel expenses amounted to € 1.7 million (previous year: € 1.6 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) remained almost unchanged (2.0%, Q110: 2.1%).
Other operating expenses. Overall the other operating expenses totalled € 15.4 million in the past quarter, an increase of € 2.2 million or 16.7% over the prior-year value of € 13.2 million.
Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from € 6.4 million by 5.8% to € 6.8 million. The share of transportation costs against revenues decreased from 8.6% in Q110 to 7.9% in Q111, partly driven by relatively stronger revenue growth coming from higher selling prices.
Marketing expenses amounted to € 2.0 million, after € 1.7 million in Q110. Although this represents an increase of 17.0%, the relationship to revenues remained on a level with last year, with a share of 2.3%.
Depreciation. In line with the gradual expansion of warehouse capacity and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.6% from € 0.3 million in Q110 to € 0.4 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.
Earnings performance. Although EBIT had risen steeply in the first quarter of last year (+122.3%), EBIT for Q111 saw a year-on-year increase once again, by 4.6% to € 6.1 million (Q110: € 5.9 million). This translated to an EBIT margin of 7.2% (Q110: 7.9%).
The continually low Euro money market rates led to a poor financial result of € 39 thousand (Q110: € 26 thousand). The expenditure for income taxes was € 2.0 million (previous year: € 1.9 million). The tax rate of 32.2% was almost flat at the previous year's level.
Consolidated net income for the period grew from € 4.0 million to € 4.2 million. This corresponds to earnings per share (EPS) of € 0.35 (undiluted, Q110: € 0.34), a step-up of 4.8%.
Cash flow and liquidity position. Following the reversal of year-end effects and the scheduled buildup of stock levels to € 83.3 million (31.12.2010: € 51.7 million), net working capital increased to € 23.7 million (31.12.2010: € 1.3 million). As a consequence, cash flow from ordinary business activities (operating cash flow) for the period under review came in lower than last year, at € –18.5 million (Q110: € 4.7 million). Delticom's reporting-date liquidity amounted to € 47.5 million; it was slightly higher than in the previous year (31.03.2010: € 45.0 million).
Frank Schuhardt (CFO) is satisfied with the progress of business so far: “The success seen in the equivalent quarter of last year placed the bar very high. So of course that makes me all the more pleased to see that Delticom has managed to once again increase revenues and its result. We’re absolutely on track.” For 2011, Delticom AG’s management continues to anticipate an increase in revenues of approximately 10%, with an EBIT margin around one percent lower than in 2010.
The full report for the first quarter of 2011 will be published by Delticom AG on 10 May 2011 on its website www.delti.com within the "Investor Relations" section.
Tuesday, April 5, 2011
Delticom-Report “Tyres Online 2011”: Internet Tyre Purchase Becoming More Popular
HANOVER, Germany--(BUSINESS WIRE)-- Approximately 40 percent of motorists in Germany want to buy their tyres on the internet. A current representative Forsa survey commissioned by Delticom, the European market leader in internet tyre sales, shines a light on the attitudes and behaviour of German motorists regarding buying tyres online. A total of 1,000 potential tyre purchasers age 18 to 65 were polled.
The interest of German motorists for ordering tyres on the internet has increased significantly: In 2010 it was 32 percent and overall this year it's approximately 10 percent more. 79 percent of respondents are convinced of the advantages of buying tyres on the internet: free and easy access to helpful and useful information, including test results. 72 percent of consumers appreciate saving time by shopping on the internet. What’s important for 67 percent of motorists is the greater selection of tyres and for 63 percent it is safety certificates such as the TÜV’s "S@fer-Shopping" quality seal. “We can only confirm this positive development. Last year solely approximately one million new customers ordered their tyres from our online tyre shops. In Germany it’s primarily our services at ReifenDirekt.de, the winner of multiple awards for tyre shops on the web, that receive high marks and recognition,” reports Rainer Binder, CEO of Delticom AG (FWB:DEX.f - News)(GER:DEX.de - News).
As shown by the current “Delticom-Report”, at just under 50 percent younger surfers age 18 to 19 in particular are the trailblazers of purchasing tyres online. Currently people age 50 to 65 still have a more reluctant attitude towards buying tyres on the internet. All the same, 30 percent of respondents in this age group would still order their tyres on the web.
On the road with summer tyres: good, but room for improvement
“German motorists are not only more open to purchasing tyres on the internet. Driver safety is also playing an increasingly bigger role. The results of our survey clearly show this,” says Rainer Binder. The great majority, 88 percent, change from winter to summer tyres and vice versa.
However, the time for changing to new summer tyres has the potential for optimisation. The purchase of new ones is primarily dependent on TÜV inspections: 83 percent of motorists buy new summer tyres when their old tyres fail inspection. 26 percent of motorists replace them only after they have fallen below the legally prescribed thread depth of 1.6 millimetres.
Internet convinces with inexpensive tyre offerings
Germany’s motorists are increasingly paying attention to the price when purchasing tyres. Men in particular appreciate the consumer-friendly terms of tyres being offered on the internet: When making their purchasing decision the price is the deciding factor for 95 percent – eleven percent more than in 2010. At 87 percent most women value free information and test results as well as time savings (77 percent).
Clever motorists in particular will find what they are looking for at Delticom. According to customer statements tyres at ReifenDirekt.de are often 20 to 25 percent less expensive compared to other shopping venues. The leading tyre dealer Delticom also provides its customers a selection of 100 tyre brands and more than 25,000 tyre models at over 121 online shops in 39 countries. At the online shops customers can shop for summer, winter or all-season tyres any time they want. In addition, the international and independent Reifentest.com testing platform provides access to current tyre tests conducted by tyre purchasers in everyday situations. ADAC members also receive a three percent discount on car and complete wheel sets.
Information about the company: delti.com
Online tyre shop in Germany: ReifenDirekt.de
The interest of German motorists for ordering tyres on the internet has increased significantly: In 2010 it was 32 percent and overall this year it's approximately 10 percent more. 79 percent of respondents are convinced of the advantages of buying tyres on the internet: free and easy access to helpful and useful information, including test results. 72 percent of consumers appreciate saving time by shopping on the internet. What’s important for 67 percent of motorists is the greater selection of tyres and for 63 percent it is safety certificates such as the TÜV’s "S@fer-Shopping" quality seal. “We can only confirm this positive development. Last year solely approximately one million new customers ordered their tyres from our online tyre shops. In Germany it’s primarily our services at ReifenDirekt.de, the winner of multiple awards for tyre shops on the web, that receive high marks and recognition,” reports Rainer Binder, CEO of Delticom AG (FWB:DEX.f - News)(GER:DEX.de - News).
As shown by the current “Delticom-Report”, at just under 50 percent younger surfers age 18 to 19 in particular are the trailblazers of purchasing tyres online. Currently people age 50 to 65 still have a more reluctant attitude towards buying tyres on the internet. All the same, 30 percent of respondents in this age group would still order their tyres on the web.
On the road with summer tyres: good, but room for improvement
“German motorists are not only more open to purchasing tyres on the internet. Driver safety is also playing an increasingly bigger role. The results of our survey clearly show this,” says Rainer Binder. The great majority, 88 percent, change from winter to summer tyres and vice versa.
However, the time for changing to new summer tyres has the potential for optimisation. The purchase of new ones is primarily dependent on TÜV inspections: 83 percent of motorists buy new summer tyres when their old tyres fail inspection. 26 percent of motorists replace them only after they have fallen below the legally prescribed thread depth of 1.6 millimetres.
Internet convinces with inexpensive tyre offerings
Germany’s motorists are increasingly paying attention to the price when purchasing tyres. Men in particular appreciate the consumer-friendly terms of tyres being offered on the internet: When making their purchasing decision the price is the deciding factor for 95 percent – eleven percent more than in 2010. At 87 percent most women value free information and test results as well as time savings (77 percent).
Clever motorists in particular will find what they are looking for at Delticom. According to customer statements tyres at ReifenDirekt.de are often 20 to 25 percent less expensive compared to other shopping venues. The leading tyre dealer Delticom also provides its customers a selection of 100 tyre brands and more than 25,000 tyre models at over 121 online shops in 39 countries. At the online shops customers can shop for summer, winter or all-season tyres any time they want. In addition, the international and independent Reifentest.com testing platform provides access to current tyre tests conducted by tyre purchasers in everyday situations. ADAC members also receive a three percent discount on car and complete wheel sets.
Information about the company: delti.com
Online tyre shop in Germany: ReifenDirekt.de
Wednesday, March 23, 2011
Delticom publishes Annual Report 2010
Hanover, 23 March 2011 – For Delticom (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, 2010 was an extremely successful year. According to the annual report released today, revenues in the fiscal year increased by 34.8% to EUR 419.6 million and EBIT by 60.1% to EUR 47.1 million. With an EBIT margin of 11.2% the profitability has improved once again. Earnings per share grew 59.4% to EUR 2.72. As in previous years, the Management Board and the Supervisory Board will propose to fully distribute the net income to shareholders.
Q410: Scarce supply, high prices.
The prime reason for the positive business development was the unusually favourable winter weather in the closing quarter. Heavy snowfalls caused serious traffic delays, especially in countries where the winter is usually quite mild. The surge in demand was intensified by new regulations in Germany, making winter tyres mandatory. At the same time tyre supply fell substantially short of demand, because tyre manufactures had ramped up their production only relatively late in the aftermath of the recession. As a result, winter tyre prices increased starkly across Europe, driven by market-wide scarcity. In the closing quarter, revenues climbed owing to positive volume and price effects to EUR 162.6 million – a plus of 48.2% year-on-year over previous year's value of EUR 109.7 million.
As a result, the EBIT margin in Q410 was with 15.0% again higher than in the already very successful prior-year period (Q409: 13.4%). We expect that the built-in advantages of our business model could very well fall in line with favourable weather and supportive regulations in the future as well. It is clear, though, that those factors will not necessarily always build-up in our favour as in 2010.
Fiscal year 2010
Revenues. Over the course of the year, selling price levels developed favourably, the mix was stable and volumes developed well. All in all, Delticom was able to generate revenues of EUR 419.6 million, a plus of 34.8% from prior-year's EUR 311.3 million. Revenues in the E-Commerce division were up year-on-year by 36.2%, from EUR 296.5 million to EUR 403.7 million. The revenues of the Wholesale division lifted by 7.6% to EUR 15.9 million, after prior-year revenues of EUR 14.8 million. Other operating income increased in 2010 in line with revenues by 33.3% to EUR 5.8 million (previous year: EUR 4.3 million).
Gross profit. The cost of sales increased in the reporting period by 33.2%, from EUR 225.8 million in 2009 to EUR 300.7 million. In an environment of rising purchasing prices, Delticom was to a good extent able to cushion the hikes by early purchasing. Thanks to the increased volume Delticom also benefited from economies of scale in the procurement function. In addition and according to schedule, Delticom generated a greater share of revenues with own inventories, compared to the previous years. This helped to meet the demand even at peak times, at good margins. As a result, the gross profit advanced in the reporting period by 38.9% year-on-year, from EUR 89.8 million to EUR 124.7 million and the gross profit margin (gross profit in relation to total income) progressed from 28.5% to 29.3%.
Personnel expenses. Thanks to the highly efficient operating workflows, the company has been able to keep staff levels low in 2010 despite increasing transaction volumes. In the reporting period on average 101 staff members were employed at Delticom (previous year: 87). Personnel expenses amounted to EUR 6.8 million (previous year: EUR 5.8 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) decreased slightly from 1.9% to 1.6%.
Other operating expenses. Overall the other operating expenses totalled EUR 69.5 million in the past financial year, an increase of EUR 16.0 million or 29.8% over the prior-year value of EUR 53.5 million.
Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from EUR 26.8 million by +28.8% to EUR 34.5 million. The share of transportation costs against revenues decreased from 8.6% in 2009 to 8.2% in 2010. The reason for this was the significant price effect in the revenues for the last financial year and in the closing quarter in particular. In addition, economies of scale arising from the centralised warehouse infrastructure helped to further drive down costs.
In the reporting period, costs for advertising totalled EUR 9.0 million, after EUR 7.7 million in 2009. This represents a marketing expense ratio (marketing expenses as a percentage of revenues) of 2.1%, after 2.5% in the corresponding period of the previous year. One of the reasons was the snowy winter which clearly illustrated the importance of appropriate tyres to safety-conscious drivers. Costs were also lower due to the fact that the client base has grown continuously over the course of the years.
Depreciation. In line with our gradual warehouse capacity expansion and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.8% from EUR 1.0 million in 2009 to EUR 1.3 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.
Earnings performance. Earnings before interest and taxes (EBIT) improved during the reporting period to EUR 47.1 million (2009: EUR 29.4 million). This corresponds to an EBIT margin of 11.2% (2009: 9.4%). The continually low Euro money market rates led to a poor financial result of EUR 102 thousand (2009: EUR 163 thousand). The expenditure for income taxes was EUR 14.9 million (previous year: EUR 9.3 million). The tax rate of 31.6% was unchanged from the previous year. Consolidated net income for 2010 grew from EUR 20.2 million to EUR 32.3 million. This corresponds to earnings per share (EPS) of EUR 2.72 (undiluted, 2009: EUR 1.71), a step-up of 59.4%.
Cash flow and liquidity position. The cash flow from ordinary business activities (operating cash flow) for the period under review was EUR 51.7 million. The strong increase from last year's EUR 13.1 million was partly due to a significant drop of funds tied up in net working capital by EUR 11.9 million. During the reporting period, Delticom made investments of EUR 3.4 million into property, plant and equipment, EUR 0.8 million into financial assets and EUR 0.1 million into intangible assets. Delticom boasts a healthy financial and assets position. At EUR 67.8 million, our liquidity remains high (previous year: EUR 40.6 million).
At Delticom's Annual General Meeting on 03.05.2011, the Management Board and the Supervisory Board will propose a dividend of EUR 2.72 per share – an increase of 60.0% compared to the dividend for financial year 2009 of EUR 1.70.
OutlookResults such as those posted in 2010 have naturally raised expectations for the current year. It would be imprudent to expect the combination of positive factors which were key in driving our 2010 performance to occur again this year. German regulations requiring drivers to fit winter tyres will play a less important role in 2011. That the next winter will experience as much snowfall as last winter remains to be seen. At the same time, shortages of replacement tyres cannot be ruled out. Many tyre manufacturers have already raised their prices as a result. It is expected that the European tyre trade will see a year-over-year decline in the second half of 2011.
At this point, experts are simply unable to assess the potential impact which the destruction in Japan could have on the tyre supply chain. While Delticom does not operate any business in Japan, it is nevertheless possible that the difficulties there could also have indirect consequences on the European tyre trade.
Independent of those short-term developments, the share of online sales in the tyre market continues to be comparatively low. More and more drivers are turning to the Internet in search of lower-priced alternatives, and an increasing number of these will make their tyre purchases in our shops. Despite the exceptionally strong results posted in 2010, Delticom plans an increase in sales volumes of approximately 10% for the current year – an ambitious, but achievable goal.
In calculating future EBIT margins, the management orients themselves to rates of growth more in line with reasonable long-term expectations. Consequently, the forecast for the 2011 EBIT margin is about one percentage point below that which was achieved in 2010. Despite this, the current view is that earnings per share could reach 2010 levels if the current business year unfolds in a positive manner.
The full Annual Report for 2010 can be downloaded from the website www.delti.com within the "Investor Relations" section.
Company profile: Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 39 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (premounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. The independent
website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 27,000 service partners – affiliated garages which take delivery of tyres and then install these on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically and abroad.
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch
Media Contact:
Melanie Gereke
Brühlstraße 11
30169 Hanover
Phone: +49-511-93634-8903
E-Mail: melanie.gereke@delti.com
Q410: Scarce supply, high prices.
The prime reason for the positive business development was the unusually favourable winter weather in the closing quarter. Heavy snowfalls caused serious traffic delays, especially in countries where the winter is usually quite mild. The surge in demand was intensified by new regulations in Germany, making winter tyres mandatory. At the same time tyre supply fell substantially short of demand, because tyre manufactures had ramped up their production only relatively late in the aftermath of the recession. As a result, winter tyre prices increased starkly across Europe, driven by market-wide scarcity. In the closing quarter, revenues climbed owing to positive volume and price effects to EUR 162.6 million – a plus of 48.2% year-on-year over previous year's value of EUR 109.7 million.
As a result, the EBIT margin in Q410 was with 15.0% again higher than in the already very successful prior-year period (Q409: 13.4%). We expect that the built-in advantages of our business model could very well fall in line with favourable weather and supportive regulations in the future as well. It is clear, though, that those factors will not necessarily always build-up in our favour as in 2010.
Fiscal year 2010
Revenues. Over the course of the year, selling price levels developed favourably, the mix was stable and volumes developed well. All in all, Delticom was able to generate revenues of EUR 419.6 million, a plus of 34.8% from prior-year's EUR 311.3 million. Revenues in the E-Commerce division were up year-on-year by 36.2%, from EUR 296.5 million to EUR 403.7 million. The revenues of the Wholesale division lifted by 7.6% to EUR 15.9 million, after prior-year revenues of EUR 14.8 million. Other operating income increased in 2010 in line with revenues by 33.3% to EUR 5.8 million (previous year: EUR 4.3 million).
Gross profit. The cost of sales increased in the reporting period by 33.2%, from EUR 225.8 million in 2009 to EUR 300.7 million. In an environment of rising purchasing prices, Delticom was to a good extent able to cushion the hikes by early purchasing. Thanks to the increased volume Delticom also benefited from economies of scale in the procurement function. In addition and according to schedule, Delticom generated a greater share of revenues with own inventories, compared to the previous years. This helped to meet the demand even at peak times, at good margins. As a result, the gross profit advanced in the reporting period by 38.9% year-on-year, from EUR 89.8 million to EUR 124.7 million and the gross profit margin (gross profit in relation to total income) progressed from 28.5% to 29.3%.
Personnel expenses. Thanks to the highly efficient operating workflows, the company has been able to keep staff levels low in 2010 despite increasing transaction volumes. In the reporting period on average 101 staff members were employed at Delticom (previous year: 87). Personnel expenses amounted to EUR 6.8 million (previous year: EUR 5.8 million). Compared to the prior-year period, the personnel expenses ratio (staff expenditures as percentage of revenues) decreased slightly from 1.9% to 1.6%.
Other operating expenses. Overall the other operating expenses totalled EUR 69.5 million in the past financial year, an increase of EUR 16.0 million or 29.8% over the prior-year value of EUR 53.5 million.
Among the other operating expenses, transportation costs is the largest line item. Tyres sold online are picked up at the delivery points by parcel services which then transport the tyres to the customers or fitting stations. As business volume increases, so too do these transportation costs, from EUR 26.8 million by +28.8% to EUR 34.5 million. The share of transportation costs against revenues decreased from 8.6% in 2009 to 8.2% in 2010. The reason for this was the significant price effect in the revenues for the last financial year and in the closing quarter in particular. In addition, economies of scale arising from the centralised warehouse infrastructure helped to further drive down costs.
In the reporting period, costs for advertising totalled EUR 9.0 million, after EUR 7.7 million in 2009. This represents a marketing expense ratio (marketing expenses as a percentage of revenues) of 2.1%, after 2.5% in the corresponding period of the previous year. One of the reasons was the snowy winter which clearly illustrated the importance of appropriate tyres to safety-conscious drivers. Costs were also lower due to the fact that the client base has grown continuously over the course of the years.
Depreciation. In line with our gradual warehouse capacity expansion and the parallel investments into warehousing infrastructure, scheduled depreciation rose by 24.8% from EUR 1.0 million in 2009 to EUR 1.3 million. The low absolute level of depreciation underlines the low capital intensity of Delticom's business.
Earnings performance. Earnings before interest and taxes (EBIT) improved during the reporting period to EUR 47.1 million (2009: EUR 29.4 million). This corresponds to an EBIT margin of 11.2% (2009: 9.4%). The continually low Euro money market rates led to a poor financial result of EUR 102 thousand (2009: EUR 163 thousand). The expenditure for income taxes was EUR 14.9 million (previous year: EUR 9.3 million). The tax rate of 31.6% was unchanged from the previous year. Consolidated net income for 2010 grew from EUR 20.2 million to EUR 32.3 million. This corresponds to earnings per share (EPS) of EUR 2.72 (undiluted, 2009: EUR 1.71), a step-up of 59.4%.
Cash flow and liquidity position. The cash flow from ordinary business activities (operating cash flow) for the period under review was EUR 51.7 million. The strong increase from last year's EUR 13.1 million was partly due to a significant drop of funds tied up in net working capital by EUR 11.9 million. During the reporting period, Delticom made investments of EUR 3.4 million into property, plant and equipment, EUR 0.8 million into financial assets and EUR 0.1 million into intangible assets. Delticom boasts a healthy financial and assets position. At EUR 67.8 million, our liquidity remains high (previous year: EUR 40.6 million).
At Delticom's Annual General Meeting on 03.05.2011, the Management Board and the Supervisory Board will propose a dividend of EUR 2.72 per share – an increase of 60.0% compared to the dividend for financial year 2009 of EUR 1.70.
OutlookResults such as those posted in 2010 have naturally raised expectations for the current year. It would be imprudent to expect the combination of positive factors which were key in driving our 2010 performance to occur again this year. German regulations requiring drivers to fit winter tyres will play a less important role in 2011. That the next winter will experience as much snowfall as last winter remains to be seen. At the same time, shortages of replacement tyres cannot be ruled out. Many tyre manufacturers have already raised their prices as a result. It is expected that the European tyre trade will see a year-over-year decline in the second half of 2011.
At this point, experts are simply unable to assess the potential impact which the destruction in Japan could have on the tyre supply chain. While Delticom does not operate any business in Japan, it is nevertheless possible that the difficulties there could also have indirect consequences on the European tyre trade.
Independent of those short-term developments, the share of online sales in the tyre market continues to be comparatively low. More and more drivers are turning to the Internet in search of lower-priced alternatives, and an increasing number of these will make their tyre purchases in our shops. Despite the exceptionally strong results posted in 2010, Delticom plans an increase in sales volumes of approximately 10% for the current year – an ambitious, but achievable goal.
In calculating future EBIT margins, the management orients themselves to rates of growth more in line with reasonable long-term expectations. Consequently, the forecast for the 2011 EBIT margin is about one percentage point below that which was achieved in 2010. Despite this, the current view is that earnings per share could reach 2010 levels if the current business year unfolds in a positive manner.
The full Annual Report for 2010 can be downloaded from the website www.delti.com within the "Investor Relations" section.
Company profile: Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With more than 100 online shops in 39 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims, complete wheels (premounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. The independent
website reifentest.com contains impartial information about tyre tests and helps the customers choose from more than 100 tyre brands and more than 25,000 tyre models. Delticom delivers either directly to the customer's home address, or to one of more than 27,000 service partners – affiliated garages which take delivery of tyres and then install these on the customer's vehicle. Delticom's Wholesale division also sells tyres to wholesalers domestically and abroad.
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk, www.reifendirekt.ch
Media Contact:
Melanie Gereke
Brühlstraße 11
30169 Hanover
Phone: +49-511-93634-8903
E-Mail: melanie.gereke@delti.com
Monday, December 13, 2010
Delticom AG acquires majority stake in Tyrepac
13th December, 2010, Singapore – Delticom AG, Europe’s leading online tyre retailer and Tyrepac Pte Ltd, Asia’s First Tyre Portal, today announced the acquisition of a majority stake in Tyrepac Pte Ltd, Asia’s First Tyre Portal, for an undisclosed amount in cash. The transaction is structured as a capital increase at Tyrepac.
Tyrepac provides consumers in Asia a central platform to buy tyres online. The webshops allow easy comparison of tyre brands, patterns, and prices. In addition, the company operates a growing network of service partners who stand ready to fit the tyres. Since its foundation in 2008, Tyrepac has expanded into Malaysia, Hong Kong, China, and South Korea. “The acquisition is a landmark development for our customers, partners, and the team. We are excited to be part of the Delticom Group", says Ler Hwee Tiong, co-founder and Managing Director of Tyrepac.
Delticom AG currently operates more than 100 online shops in Europe, US and Canada. “The transaction is an important building block in our long-term Asian strategy”, says Rainer Binder, CEO of Delticom. Starting from Tyrepac’s credible brand and proven track record, the joint venture will help Delticom to reach into new high-growth, emerging markets.
“For Tyrepac, the cash inflow paves the way for accelerated growth”, explains Frank Schuhardt, CFO of Delticom and member of Tyrepac’s Executive Committee. Further support for expansion plans will also come from the strong Delticom balance sheet. Tyrepac is expected to benefit from the parent company’s operational experience, but will retain its localised go-to-market approach. Over the course of the next months, both teams are going to work closely together to integrate their systems and processes.
About Delticom
Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover-based company operates more than 100 online shops in 35 countries and has served more than 4,000,000 customers so far. The company offers a wide range of products for private and business customers: over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels, motor oil, replacement parts and accessories. The products are delivered to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 25,000 service partners worldwide for professional fitting directly on to the customer’s vehicle.
Delticom is listed on the German Stock Exchange (ISIN DE0005146807, ticker symbol DEX). As of December 2010, market capitalisation stands at approximately EUR 750 million (S$ 1,300 million). The company is expected to end the 2010 fiscal year with revenues totalling more than EUR 400 million (S$ 700 million), an growth of around 30% year-on-year (2009: EUR 311 million, S$ 540 million).
About Tyrepac
Tyrepac was founded in Singapore in 2008, and is Asia’s first tyre retailing portal. Now operating in several Asian countries, Tyrepac offers a comprehensive range of car and motorcycle tyres, transparent pricing, convenience from more than 2000 service partners in Asia, and a wide variety of product information and other customer education. In Singapore, consumers can also have tyres fitted at the comfort of their home, via its mobile fitting service. Tyrepac also offers quotation for batteries, automotive insurance, and servicing packages in collaboration with its service partners.
Tyrepac provides consumers in Asia a central platform to buy tyres online. The webshops allow easy comparison of tyre brands, patterns, and prices. In addition, the company operates a growing network of service partners who stand ready to fit the tyres. Since its foundation in 2008, Tyrepac has expanded into Malaysia, Hong Kong, China, and South Korea. “The acquisition is a landmark development for our customers, partners, and the team. We are excited to be part of the Delticom Group", says Ler Hwee Tiong, co-founder and Managing Director of Tyrepac.
Delticom AG currently operates more than 100 online shops in Europe, US and Canada. “The transaction is an important building block in our long-term Asian strategy”, says Rainer Binder, CEO of Delticom. Starting from Tyrepac’s credible brand and proven track record, the joint venture will help Delticom to reach into new high-growth, emerging markets.
“For Tyrepac, the cash inflow paves the way for accelerated growth”, explains Frank Schuhardt, CFO of Delticom and member of Tyrepac’s Executive Committee. Further support for expansion plans will also come from the strong Delticom balance sheet. Tyrepac is expected to benefit from the parent company’s operational experience, but will retain its localised go-to-market approach. Over the course of the next months, both teams are going to work closely together to integrate their systems and processes.
About Delticom
Delticom is Europe’s #1 online tyre retailer. Founded in 1999, the Hanover-based company operates more than 100 online shops in 35 countries and has served more than 4,000,000 customers so far. The company offers a wide range of products for private and business customers: over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels, motor oil, replacement parts and accessories. The products are delivered to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 25,000 service partners worldwide for professional fitting directly on to the customer’s vehicle.
Delticom is listed on the German Stock Exchange (ISIN DE0005146807, ticker symbol DEX). As of December 2010, market capitalisation stands at approximately EUR 750 million (S$ 1,300 million). The company is expected to end the 2010 fiscal year with revenues totalling more than EUR 400 million (S$ 700 million), an growth of around 30% year-on-year (2009: EUR 311 million, S$ 540 million).
About Tyrepac
Tyrepac was founded in Singapore in 2008, and is Asia’s first tyre retailing portal. Now operating in several Asian countries, Tyrepac offers a comprehensive range of car and motorcycle tyres, transparent pricing, convenience from more than 2000 service partners in Asia, and a wide variety of product information and other customer education. In Singapore, consumers can also have tyres fitted at the comfort of their home, via its mobile fitting service. Tyrepac also offers quotation for batteries, automotive insurance, and servicing packages in collaboration with its service partners.
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