Delticom Reports Improved Q1 Profits

During the opening quarter of the current fiscal year Delticom AG enjoyed a more than 300 per cent increase in year-on-year net income, up from 0.5 million euros to 1.9 million. This growth came on the back of a 19.8 per cent increase in sales to 51 million euros. These revenues are divided up into 46.7 million euros for the company’s eCommerce segment – an increase of 21.4 per cent – and 4.3 million euros for the Wholesale segment. EBIT rose from 0.5 million euros to 2.6 million year-on-year, with a quarterly EBIT margin of 5.2 per cent.

“We can certainly be pleased with the first quarter,” commented Delticom AG CEO Rainer Binder. “For tyre dealers, the first quarter nevertheless plays a somewhat less important role due to its relatively low seasonal weight. Even so, we see a trend: More and more tyres are bought online. In the current economic situation across Europe, a rising number of consumers are discovering favourably priced purchasing opportunities on the Internet.”

A report recently published by the German motorists organisation ADAC, titled “Reifenmonitor 2009”, documents that drivers are definitely inclined towards buying their tyres online. Among the survey participants, 15 per cent could well imagine buying their tyres on the Internet in the future. Only 4.9 per cent (up from 3.1 per cent the previous year) of the drivers polled had already purchased tyres online. These figures, notes Delticom, clearly indicate sufficient growth potential for the next few years.