Delticom AG publishes 2008 annual report
Hanover, 30 March 2009 - Delticom AG (WKN 514680, ISIN DE0005146807, stock
market symbol DEX), Europe's leading online tyre dealer, has closed the fiscal year
2008 with a record result. The company thus continues along the profitable growth
path of recent years.
- Revenues EUR 259.0 million (+20%)
- EBIT EUR 16.4 million (+34%), EBIT margin 6.4%
- Earnings EUR 11.7 million, EUR 2.97 per share (+41%)
- Proposed dividend: EUR 3.00 per share (+50%)
Although 2008 marked the second consecutive disappointing year for the tyre industry and
tyre retailers, Delticom's online business model has proven yet again that it is capable of
strong growth, this time in a less than favourable economic environment. The company
recorded significantly increased sales in nearly all of its more than 100 online shops in 35
countries. This is reflected in year-on-year rise in revenues in each quarter. In the fourth
quarter alone, revenues of EUR 84.0 million were achieved (2007: EUR 69.5 million). In the
year as a whole, Delticom increased revenues year-on-year by 20.2% to EUR 259.0 million
(2007: EUR 215.5 million). With these results, Delticom hit the upper end of the revenue
targets released by the company at the beginning of the last year.
Delticom's significant revenue growth was accompanied by further improvement in its
earnings: EBIT increased in the reporting period by 34.0% to EUR 16.4 million (2007: EUR
12.3 million). In relation to revenues, this corresponds to an EBIT margin of 6.4% which
clearly exceeds the guidance of 5-6% (2007: 5.7%). Consolidated net income for 2008 was
EUR 11.7 million or EUR 2.97 per share, up 40.5% from previous year's EUR 2.12.
Operating cash flow also increased significantly, from EUR 6.6 million to EUR 16.7 million. At
the end of the 2008 fiscal year, net cash totalled EUR 42.9 million, corresponding to a yearon-
year growth of 24.3% (31 December 2007: EUR 34.5 million). Frank Schuhardt, CFO of
Delticom AG: "We are debt free and have a strong balance sheet. As a result of this, we are
in a position to allow our shareholders to partake of our firm's success, as has been the case
in past years." Subject to the approval of the Annual General Meeting on 19 May 2009,
Delticom AG will pay out a dividend of EUR 3.00, 50% more than in the previous year.
Economists continue to be uncertain about the sort of headwind companies will be facing in
the next months. On the other hand, thanks to its solid earnings and financial situation,
Delticom is well positioned to maintain its success even in the face of the current fragile
economic conditions. The first three months of 2009 have started on a positive note, despite
unfavourable weather conditions for tyre dealers across the main European markets.
Delticom's management is therefore cautiously optimistic at this early point of the year and is
aiming for a year-over-year increase in revenues of 10% for 2009. In the current
recessionary environment, some additional sales might be achievable at slightly reduced
margins. As a result, the management does not see EBIT margins of over 6% as the rule, but
considers them a pleasant surprise.
"Particularly in difficult economic times, consumers turn to companies who offer a good
selection at reasonable prices. Delticom does both - and not only in Germany, but all over
Europe", says Rainer Binder, CEO of Delticom AG, and adds: "We will continue to expand
our position as the leading online tyre retailer."
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With 100
online shops in 35 countries, the company offers its private and business customers an
unequalled assortment of excellently priced car tyres, motorcycle tyres, truck tyres, bus tyres,
rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and
accessories, motor oil and batteries. Delticom carries more than 100 tyre brands and more
than 25,000 tyre models. Customers receive extensive information on product features,
pricing and alternatives. Delticom delivers either directly to the customer's home address, or
to one of the more than 24,000 service partners - affiliated garages which take delivery of
tyres and then install these on the customer's vehicle. Delticom's Wholesale division also
sells tyres to wholesalers domestically and abroad.
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk,
|Delticom AG Investor Relations
|Tel.: +49(0)511-936 34-8903
|Fax: +49(0)511-8798-9138 |
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