CDP Group reports 2010 sales up 39%
Less than a year after Tyres & Accessories introduced the relatively young company to the wider market, Italian tyre wholesaler CDP group has provided more evidence that it is achieving its high hopes. As promised months ago, CDP Group sent our Italian sister publication (PneusNews.it) the company’s 2010 full balance sheet – far from common practice in some quarters – in a move that signals company CEO Andrea Reggi’s commitment to work with the maximum transparency.
CDP Group is a company that started from zero. There’s nothing strange about this, but actually, if we consider the Italian tyre distribution panorama apart from the traditional companies, the new players are mainly groups of existing companies which combine strengths, skills and numbers. Instead CDP Group was founded in 2008 as a totally new enterprise, independent and with the sole objective of creating profitability.
The rules in the company are simple: profitability and financial soundness come first. The product range covers car, SUV, 4×4 and light truck, with a small share of motorcycle and scooter tyres. The suppliers are 80 per cent internatioanl, warehousing and logistics are outsourced.
Tyres & Accessories: 2010 was a success, as planned?
Andrea Reggi: “Yes, definitely. We increased our turnover by 39 per cent compared to 2009, with revenues over 38 million euro. However, we are even more satisfied with the EBIT, which has almost tripled and with the net income which has gone from 250,000 euros in 2009 to 1,140,800 euros in 2010.
T&A: What has allowed you to reach these results?
AR: “2010 was quite a challenging year especially due to the adjustment and the further implementation of our sales network still in progress. However, by achieving/exceeding our targets for the third consecutive year, we have proved the correctness of our trade policy and the success of our cost control management and company efficiency.
T&A: Has it already or will the share capital of 1 million euros allocated at the company’s foundation be doubled, as anticipated in the earlier interview with PneusNews.it in February?
AR: “Absolutely, we have brought to reserve 890,000 euros, thanks to which our capital will exceed 2 million euros and the difference, amounting to 250,000 euros compared to the total net income, has been distributed to shareholders. This shows our firm intention to make CDP a more and more financially solid company”.
T&A: In these first six months of 2011, what trends can be outlined for the market and for CDP?
AR: “With regards to the first six months we are extremely satisfied both with our cost control management and revenue growth, although, as already stated, our goal in 2011 is to increase our net profit not our turnover. In this regard, I can say that the first half-year profit is much higher than that of the same period last year and well beyond our forecasts.”
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