Strong sales improvement for online tyre retailer, Delticom

ERJ staff report (DS)

Hannover, Germany -- Online tyre retailer Delticom has reported much stronger sales in the third quarter and the first nine months of 2010.

The company's profitability also improved significantly: Q310 EBIT rose to euro 6.0 million (Q309: euro 4.5 million). 9M10 EBIT went up by 54.5 percent to euro 22.7 million (9M09: euro 14.7 million), an EBIT margin of 8.8 percent (9M09: 7.3 percent). Consolidated net income was euro 15.2 million or euro 1.29 per share (basic). Earnings per share thus increased 51.9 percent against the 9M09 figure of euro 0.85.

Compared with the prior-year period, Delticom lifted its revenues by 27.5 percent to euro 257.0 million (9M09: euro 201.6 million). In the third quarter the company recorded revenues of euro 79.7 million (+27.6 percent, Q309: euro 62.4 million).

Delticom said it acquired 625 thousand new customers year-to-date and served around 294 thousand recurring tyre buyers. On 30.09.2010 the customer base exceeded 4.0 million customers. 9M10 revenues in the E-Commerce division increased by 29.1 percent year-on-year, from euro 189.8 million to euro 244.9 million. The Wholesale division has stabilised in 2010 after experiencing a decline in the wake of the recession. In the reporting period, divisional revenues grew by 2.2 percent to euro 12.1 million (9M09: euro 11.8 million).

Frank Schuhardt (CFO) is satisfied with the current winter tyre business: “So far, it has scarcely snowed and only in few areas in higher altitudes. Still, the debate on whether to make winter tyres mandatory has bolstered German demand in recent weeks.”

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Press release from Delticom