Tirendo’s presence felt in Delticom Q1 results

Net income at online tyre retailer Delticom took a dive in the first quarter of 2014, despite a year-on-year rise in sales revenue. While the addition of Tirendo sales and an early start to the summer season drove revenues up 16.4 per cent to €94.3 million in the three months to 31 March 2014, the good news ended there. EBITDA declined 26.0 per cent to €2.4 million in the first quarter, and ppa-effect pushed EBIT down to €0.3 million, a year-on-year reduction of 88.4 per cent. EBIT margin was 0.3 per cent in the first quarter of 2014, as opposed to 3.1 per cent a year earlier. Net income shrank – to use the word Delticom applied in its 3-Month report – by 98.8 per cent, to €20,400.

Tirendo is identified as the protagonist behind the above figures, both good and bad. Delticom calculates that the ‘old’ company – that is, Delticom excluding Tirendo – would have achieved revenues of €86.0 million in the first quarter, an increase of 5.8 per cent. The company also says EBIT would have risen 40.8 per cent to €3.6 million and the EBIT margin would have grown from 3.1 per cent to 4.3 per cent.

As for the remainder of 2014, Delticom anticipates a ten per cent year-on-year growth in revenues, even if market and weather conditions are not better than last year. In terms of overall earnings before interest, tax, depreciation and amortisation (EBITDA), the company says aims to be at least on par with the 2013 financial year.