Strong Q2 result lifts Delticom’s bottom line for H1 2016

Online tyre retailer Delticom has profited from the same cold weather that held sales back earlier in the year, at least to an extent. Reporting on its financial performance in the second quarter of 2016, the company noted that low temperatures prompted European motorists to delay fitting summer tyres to their vehicles until after Easter, and while the delayed switch to summer tyres helped boost Q2 2016 sales by 22.0 per cent year-on-year to €169.3 million, the company suggests that dealers sold almost five per cent fewer replacement car tyres to consumers during the first half of the year. Sales for the first six months of 2016 were up 9.9 per cent to €275.1 million.

The turnover recorded in the first half of the year includes income from two non-tyre businesses acquired on 23 February 2016, Gourmondo and ES Food. Gourmondo has sold foodstuffs and wine online in Germany since 2002, while ES Food is primarily a logistics company with an efficient warehousing, order picking and shipping system for small goods. ES Food also operates the online shop Lebensmittel.de. Without taking the two acquired companies into account, revenues within the Delticom Group increased by 7.5 per cent to €269 million during the first half.

Due to one-off costs associated with the abovementioned new companies’ acquisition, earnings before interest, taxes, depreciation and amortisation (EBITDA) for the reporting period was, at €.6.1 million, 6.9 per cent lower than a year earlier, while the EBITDA margin fell from 2.6 to 2.2 per cent. Earnings before interest and taxes (EBIT) increased 17.9 per cent to €1.6 million. This translates into an EBIT margin of 0.6 per cent.

Consolidated net income in the first half of the year totalled €0.9 million, up from €0.7 million in the first half of 2015. This corresponds to earnings per share (EPS) of €0.07. Delticom managed to claw its way back into the black thanks to second quarter income of €3.3 billion, a 55.3 per cent increase on the result achieved during the same months of 2015,

Delticom considers its business in the first half of the year to have been “in line with planning,” and the company continues to expect a growth in group sales to between €620 million and €630 million in the current financial year. Full-year group EBITDA of €16 million is regarded as achievable in light of the cost savings Delticom is making in relation to personnel, marketing and logistics.

Further details about Delticom’s Q2 2016 results can be found in the Tyrepress.com company profiles and reports section.