Online retailer Delticom reports record year on winter tyre sales

ERJ staff report (DS)

Hanover, Germany -- Delticom AG, Europe's leading online tyre dealer, has released preliminary figures for the fiscal year 2010, reporting revenues up by 34.8 percent to EUR 419.4 million (2009: EUR 311.3 million).

As a result, Delticom said it has continued to ramp up its business substantially in 2010. The company was able to attract almost one million new customers via its more than 100 online shops in 39 countries. At the end of the reporting period, the total number of customers stood at 4.4 million.

As usual, the winter months contributed strongly to the 2010 performance. Year-on-year, Delticom grew its Q4 revenues by 48.1 percent to EUR 162.4 million (Q409: EUR 109.7 million). In the same period the EBIT margin rose to a record-high of 15.3 percent, from 13.4 percent in Q409. Rainer Binder (CEO): "The closing quarter benefited from new German regulations calling for mandatory fitting of winter tyres. Sales were also boosted by substantial snowfalls across Europe. Despite market-wide shortages we were able to deliver.” On the back of the generally favourable pricing environment over the course of the year, FY 2010 EBIT margin came in at 11.4 percent - significantly above last year's 9.4 percent.

The company said this year's extraordinary winter tyre season means revenue growth in the current year is expected to slow down. Assuming demand, supply and prices to normalise over the coming months, Delticom also expects lower margins for 2011. Frank Schuhardt (CFO): "Delticom follows a stable growth path, irrespective of seasonal fluctuations. We are confident that the company will continue to perform better than the overall market."

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Press release from Delticom