Delticom AG

EANS-News: Delticom AG: Q1 2011 on track

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Financial Figures/Balance Sheet

Hannover (euro adhoc) - 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 EUR 85.4 million and EBIT by 4.6% to EUR 6.1 million. EBIT margin decreased to 7.2% (Q110: 7.9%). Earnings per share grew 4.8% to EUR 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 EUR 85.4 million, a plus of 14.6% from prior-year's EUR 74.5 million. Revenues in the E-Commerce division were up year-on-year by 13.9%, from EUR 70.7 million to EUR 80.5 million. The revenues of the Wholesale division lifted by 28.6% to EUR 4.8 million, after prior-year revenues of EUR 3.7 million. Other operating income increased in Q111 by 3.1% to EUR 1.3 million (previous year: EUR 1.3 million).

Gross profit

The cost of sales increased in the reporting period by 15.0%, from EUR 54.8 million in 2010 to EUR 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 EUR 21.0 million to EUR 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 EUR 1.7 million (previous year: EUR 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 EUR 15.4 million in the past quarter, an increase of EUR 2.2 million or 16.7% over the prior-year value of EUR 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 EUR 6.4 million by 5.8% to EUR 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 EUR 2.0 million, after EUR 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 EUR 0.3 million in Q110 to EUR 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 EUR 6.1 million (Q110: EUR 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 EUR 39 thousand (Q110: EUR 26 thousand). The expenditure for income taxes was EUR 2.0 million (previous year: EUR 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 EUR 4.0 million to EUR 4.2 million. This corresponds to earnings per share (EPS) of EUR 0.35 (undiluted, Q110: EUR 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 EUR 83.3 million (31.12.2010: EUR 51.7 million), net working capital increased to EUR 23.7 million (31.12.2010: EUR 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 EUR -18.5 million (Q110: EUR 4.7 million). Delticom's reporting-date liquidity amounted to EUR 47.5 million; it was slightly higher than in the previous year (31.03.2010: EUR 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.

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 (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

end of announcement                               euro adhoc
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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: melanie.gereke@delti.com

Branche: Electronic Commerce
ISIN: DE0005146807
WKN: 514680
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade



Weitere Meldungen: Delticom AG

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