Preliminary Results: Delticom Beats FY2009 Forecast
- Revenues: EUR 310 million, +20% yearonyear
- EBIT: EUR 28 million (2008: EUR 16.4 million, +70%)
- EBIT margin exceeds 9%
- 2010 guidance: up to 10% revenue growth, 8% EBIT margin
Delticom AG (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading online tyre dealer, has released preliminary figures for the fiscal year 2009.
Since mid of 2009, the consumer climate has been deteriorating, dragged down latecyclically by the recession. This placed European retail business under mounting pressure over the course of the last year. Against this backdrop, E-Commerce fared relatively well. Delticom's new customer growth reflects this resilience: Last year, 800,000 customers purchased tyres for the first time in one of the company's many online shops. Group revenues in 2009 totalled EUR 310 million, after prioryear revenues of EUR 259 million. Compared to the original guidance of +10%, the realized growth of +20% came in twice as strong as expected.
The extreme snowy weather in many European countries translated into the highest tyre sales in Delticom's history. In Germany new car registrations resulting from the scrappage scheme created further selling opportunities for winter tyres. As a result, revenues in the closing quarter were EUR 108 million, up 29% from last year.
Delticom had stocked up early in order to be able to deliver the tyres reliably during the peak of the winter tyre season. This allowed superior margins to be achieved, particularly towards the end of the year. The Group generated an EBIT margin of 12% in Q4. On a fullyear view, EBIT grew by 70%, from EUR 16.4 million to EUR 28 million. This equates to an EBIT margin of above 9%, significantly outperforming the 7% forecast.
For 2010 a comparable concurrence of favourable top- and bottom line effects is unlikely.Moreover, economists are still undecided on how the weakening consumer sentiment will impact European online shopping this year. Nevertheless, the Management Board remains confident that Delticom will continue on its growth path, with a planned revenue increase of up to 10% yearonyear. Assuming a supportive course of business, an EBIT margin of 8% is attainable.
Delticom will publish its 2009 financial statements on 23 March 2010 on its Website www.delti.com in the Investor Relations section.
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With 102 online shops in 35 countries, the company offers its private and business customers an unequalled assortment of excellently priced car tyres, motorcycle 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 24,000 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.