Quarterly Report • May 15, 2015
Quarterly Report
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Delticom is Europe's leading online tyre retailer. Founded in 1999, the Hanover-based company has more than 100 online shops in 42 countries, among others ReifenDirekt, www.mytyres.co.uk in UK and www.123pneus.fr in France, as well as the Tirendo shops which enjoy a high level of recognition, not least due to its brand ambassador, Sebastian Vettel. Delticom offers a wide range of products for its private and business customers: more than 25,000 models from over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels, motor oil, replacement parts and accessories.
Customers enjoy all the advantages of modern E-Commerce: convenience in order placing, quick, efficient delivery, clear cost information and, last but not least, low prices. The products are delivered in two business days to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 41,000 service partners (9,500 in Germany alone) for professional fitting directly on to the customer's vehicle at a reasonable price.
| Key Figures | 01.01.2015 | 01.01.2014 | –/+ | |
|---|---|---|---|---|
| – 31.03.2015 | – 31.03.2014 | (%, %p) | ||
| Revenues | € million | 111.3 | 94.3 | +18.1 |
| Total income | € million | 115.6 | 97.3 | +18.8 |
| 1 Gross margin |
% | 22.0 | 24.5 | –2.5 |
| 2 Gross profit |
€ million | 24.5 | 23.1 | +6.2 |
| EBIT | € million | –1.4 | 0.3 | –559.5 |
| 3 EBIT margin |
% | –1.2 | 0.3 | –1.5 |
| Net income | € million | –1.4 | 0.0 | –6908.5 |
| 4 Earnings per share |
€ | –0.11 | 0.00 | –6468.6 |
| Total assets | € million | 187.3 | 221.5 | –15.4 |
| Inventories | € million | 73.6 | 94.7 | –22.3 |
| 5 Investments |
€ million | 0.2 | 0.2 | +11.7 |
| 6 Capital Employed |
€ million | 64.8 | 73.1 | –11.4 |
| 7 Return on Capital Employed |
% | –2.1 | 0.4 | –2.5 |
| Equity | € million | 49.4 | 51.7 | –4.4 |
| Equity ratio | % | 26.4 | 23.3 | +3.0 |
| Return on equity | % | –2.8 | 0.0 | –2.9 |
| 8 Liquidity position |
€ million | 20.1 | 21.1 | –4.8 |
| Operating cash flow | € million | –9.2 | 10.7 | |
| 9 Free cash flow |
€ million | –9.4 | 10.5 |
(1) Gross profit ex other operating income in % of revenues
(2) Gross profit ex other operating income
(3) Consolidated earnings before interest and taxes (EBIT) to revenues
(4) Undiluted
(5) Investments in tangible and intangible assets
(6) Capital Employed = total assets – current liabilities
(7) ROCE = EBIT / Capital Employed
(8) Liquidity position = cash and cash equivalents + liquidity reserve
(9) Free cash flow = Operating cash flow – Cashflow from investing activities
Significant events after the reporting date
Tirendo
On 16.09.2013 Delticom acquired all shares in the Berlin-based online tyre retailer Tirendo Holding GmbH and its subsidiaries. Tirendo Holding GmbH and Tirendo Deutschland GmbH (both companies hereinafter collectively referred to as Tirendo) are fully consolidated in the Delticom Group from the date of acquisition (16.09.2013).
Group Delticom, Europe's leading online tyre retailer, generates the bulk of its revenues through sales of replacement tyres for cars, motorcycles, trucks and industrial vehicles.
In Q1-15 the company recognised revenues of €-111.3-million, an increase of 18.1-% after €-94.3-million in the prior-year period.
The chart Revenues trend summarises the development of the quarterly revenues.
quarterly revenues in € million
| E-Commerce | Revenues in the E-Commerce division with its 188 online shops were up year on-year by 18.5-%, from €-91.9-million to €-108.9-million. The share of divisional revenues amounted to 97.8-%, compared to 97.4-% in the previous year. |
|---|---|
| Customer numbers | In Q1-15 the company was able to acquire a total of 207-thousand new customers (Q1-14: 197 thousand, Delticom and Tirendo accumulated, +5.2-%). In the course of the financial year 2014, Delticom modified the way in which it calculates its customer numbers. As a consequence, the previous year's figure differs from the figures stated in the 3-Monthly Report 2014. Customers who purchased for the first time at both Delticom and Tirendo in Q1-15 were offset. In Q1-15 a total of 238-thousand existing customers (Q1-14: 200 thousand, +19.2-% - based on new calculation methodology) made repeat purchases at Delticom group. |
Regional split The group offers its product range in 42 countries. Revenues in EU countries totalled €-83.9-million (+13.2-%). Across all non-EU countries the revenue contribution for Q1-15 was €-27.5-million (+36.2-%).
in € thousand
| Q115 | % | +% | Q114 | % | +% | Q113 | % | |
|---|---|---|---|---|---|---|---|---|
| Revenues | 111,339 | 100.0 | 18.1 | 94,283 | 100.0 | 16.0 | 81,275 | 100.0 |
| Regions | ||||||||
| EU | 83,871 | 75.3 | 13.2 | 74,121 | 78.6 | 19.3 | 62,121 | 76.4 |
| Rest | 27,469 | 24.7 | 36.2 | 20,163 | 21.4 | 5.3 | 19,155 | 23.6 |
Cost of goods sold The cost of goods sold (COGS) is the largest expense item; it considers the
purchase price of sold tyres. Group COGS increased by 21.9-% from €-71.2-million
in Q1-14 to €-86.8-million in Q1-15.
| Personnel expenses | On 31.03.2015, the company employed a total of 154 employees. 137 of them (including trainees) worked for Delticom and the remaining 17 for Tirendo (Q1-14: 147). In the reporting period Delticom group employed an average of 140 staff members (Q1-14: 278). Personnel expenses amounted to €-2.2-million (Q1-14: €-3.6-million, –39.6-%). This decrease is mainly due to the significant workforce reduction at Tirendo. The personnel expenses ratio in the first quarter came to 2.0-% (staff expenditures as percentage of revenues, Q1-14: 3.9-%). |
|---|---|
| Warehousing | Rents and overheads remained with €-1.8-million nearly unchanged (Q1-14: €-1.8-million, –0.1-%). Stocking costs amounted to €-1.1-million, after €-0.9-million in Q1-14 (+17.8-%). |
| Transportation costs | Among the other operating expenses, transportation costs is the largest line item. The increase from €-7.2-million by 34.1-% to €-9.7-million is mainly due to sales country-mix and the higher business volume. The share of transportation costs against revenues increased in the reporting period from 7.7-% in Q1-14 to 8.7-% in Q1-15. |
| Marketing | Group marketing expenses in Q1-15 were increased by 9.9-% from €-4.8-million to €-5.3-million to push an early start into the summer tyre business. Q1-15 |
Depreciation Depreciation for Q1-15 remained with €-2.1-million nearly unchanged (Q1-14: €-2.1-million, +1.4-%).
marketing spent with 4.7-% of revenues was lower than last year's 5.1-%.
Gross margin The gross margin for the first quarter was set to 22.0-%, after 24.5-% in Q1-14.
quarterly, in € million
| EBIT | Q1-15 earnings before interest and taxes (EBIT) contracted to €-–1.4-million (Q1-14: €-0.3-million). This translates into an EBIT margin of –1.2-% (EBIT in percent of revenues, Q1-14: 0.3-%). |
|---|---|
| Financial income | Financial income for the first three months amounted to €-8-thousand (Q1-14: €-8-thousand). Financial expenses were €-96-thousand (Q1-14: €-271-thousand). The financial result totalled €-–88-thousand (Q1-14: €-–263-thousand). |
| Income taxes | In the reporting period, deferred taxes led to tax income of €-50.2-thousand. In Q1-14, the expenditure for income taxes was €-10.5-thousand. |
| Net income | Consolidated net income shrank in the reporting period from €-20-thousand in Q1-14 to €-–1,390-thousand. |
| The table Abridged P+L statement summarises key income and expense items |
from multiple years' profit and loss statements.
| in € thousand | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q115 | % | +% | Q114 | % | +% | Q113 | % | |
| Revenues | 111,339 100.0 | 18.1 | 94,283 100.0 | 16.0 | 81,275 100.0 | |||
| Other operating income | 4,218 | 3.8 | 41.0 | 2,992 | 3.2 | 94.5 | 1,538 | 1.9 |
| Total operating income | 115,557 103.8 | 18.8 | 97,276 103.2 | 17.5 | 82,814 101.9 | |||
| Cost of goods sold | –86,814 | –78.0 | 21.9 | –71,199 | –75.5 | 16.6 | –61,055 | –75.1 |
| Gross profit | 28,744 | 25.8 | 10.2 | 26,076 | 27.7 | 19.8 | 21,758 | 26.8 |
| Personnel expenses | –2,196 | –2.0 | –39.6 | –3,636 | –3.9 | 60.8 | –2,262 | –2.8 |
| Other operating expenses | –25,787 | –23.2 | 28.5 | –20,062 | –21.3 | 23.2 | –16,283 | –20.0 |
| EBITDA | 761 | 0.7 | –68.0 | 2,378 | 2.5 | –26.0 | 3,213 | 4.0 |
| Depreciation | –2,112 | –1.9 | 1.4 | –2,083 | –2.2 209.3 | –674 | –0.8 | |
| EBIT | –1,352 | –1.2 –559.5 | 294 | 0.3 | –88.4 | 2,539 | 3.1 | |
| Net financial result | –88 | –0.1 | –66.4 | –263 | –0.3 3830.3 | –7 | 0.0 | |
| EBT | –1,440 | –1.3 –4765.1 | 31 | 0.0 | –98.8 | 2,532 | 3.1 | |
| Income taxes | 50 | 0.0 –580.1 | –10 | 0.0 | –98.8 | –856 | –1.1 | |
| Consolidated net income | –1,390 | –1.2 –6908.5 | 20 | 0.0 | –98.8 | 1,676 | 2.1 |
Inventories Among the current assets, inventories is the biggest line item. Since the beginning of the year stock grew by €-17.4-million or 31.0-% to €-73.6-million (31.12.2014: €-56.2-million). This corresponds to a share of 39.3-% of total assets (31.12.2014: 34.2-%, 31.03.2014: 42.7-%).
Receivables Trade receivables usually follow the seasons, but reporting date effects are often unavoidable. At the end of the quarter, the accounts receivable amounted to €-23.0-million (31.12.2014: €-14.5-million, 31.03.2014: €-20.2-million).
Payables In the wake of this inventory build-up, the accounts payable increased from an opening balance of €-75.9-million by 27.3-% to €-96.6-million.
As of 31.03.2015 the balance sheet total amounted to €-187.3-million (31.12.2014: €-164.0-million). Table Abridged balance sheet illustrates the low capital intensity of the business model.
| in € thousand | |||||||
|---|---|---|---|---|---|---|---|
| 31.03.15 | % | +% | 31.12.14 | % | 31.12.13 | % | |
| Assets | |||||||
| Non-current assets | 56,404 | 30.1 | –3.0 | 58,135 | 35.4 | 66,698 | 37.7 |
| Fixed assets | 55,088 | 29.4 | –3.3 | 56,952 | 34.7 | 64,368 | 36.4 |
| Other non-current assets | 1,316 | 0.7 | 11.2 | 1,183 | 0.7 | 2,330 | 1.3 |
| Current assets | 130,930 | 69.9 | 23.7 | 105,872 | 64.6 | 110,322 | 62.3 |
| Inventories | 73,570 | 39.3 | 31.0 | 56,151 | 34.2 | 72,841 | 41.1 |
| Receivables | 36,685 | 19.6 | 85.8 | 19,745 | 12.0 | 26,158 | 14.8 |
| Liquidity | 20,675 | 11.0 –31.0 | 29,975 | 18.3 | 11,323 | 6.4 | |
| Securities | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 | |
| Cash and cash equivalents | 20,675 | 11.0 –31.0 | 29,975 | 18.3 | 11,323 | 6.4 | |
| Assets | 187,334 100.0 | 14.2 | 164,007 100.0 | 177,020 100.0 | |||
| Equity and Liabilities | |||||||
| Long-term funds | 64,812 | 34.6 | –3.2 | 66,943 | 40.8 | 64,635 | 36.5 |
| Equity | 49,416 | 26.4 | –1.7 | 50,293 | 30.7 | 51,679 | 29.2 |
| Long-term debt | 15,396 | 8.2 | –7.5 | 16,651 | 10.2 | 12,957 | 7.3 |
| Provisions | 401 | 0.2 | 14.2 | 351 | 0.2 | 252 | 0.1 |
| Liabilities | 14,995 | 8.0 | –8.0 | 16,300 | 9.9 | 12,704 | 7.2 |
| Short-term debt | 122,522 | 65.4 | 26.2 | 97,064 | 59.2 | 112,385 | 63.5 |
| Provisions | 2,160 | 1.2 | –8.7 | 2,367 | 1.4 | 2,028 | 1.1 |
| Liabilities | 120,362 | 64.2 | 27.1 | 94,698 | 57.7 | 110,357 | 62.3 |
Liquidity position Liquidity (cash and cash equivalents plus liquidity reserve) as of 31.03.2015 totalled €-20.1-million (31.12.2014: €-29.9-million, 31.03.2014: €-21.1-million). The company's net cash position amounted to €-14.8-million (liquidity less liabilities from current accounts, 31.03.2014: €-8.7-million).
Based on the cash flow, the chart Liquidity Bridge illustrates how the liquidity position changed in the trailing 12 months.
| Operating cash flow | Due to the development in net working capital, the Q1-15 cash flow from ordinary business activities (operating cashflow) of €-–9.2-million was significantly lower than in the comparison period (Q1-14: €-10.7-million). |
|---|---|
| Investing activities | In the first quarter, Delticom invested €-75-thousand into property, plant and equipment and €-158-thousand in intangible assets. Q1-15 cash flow from in vesting activities amounted to €-–0.2-million (Q1-14: €-–0.2-million). |
| Financing activities | Due to repayment of loans of €-–1.1-million and the raising of financial liabilties of €-0.7-million, the cash flow from financing activities amounted to €-–0.4-million in the reporting period (Q1-14: €-–0.9-million). |
Legal structure The following section lists the subsidiaries that are fully consolidated in the consolidated financial statements as of 31.03.2015:
An overview of all not-consolidated subsidiaries can be found in the notes.
Dividend
The Annual General Meeting on 05.05.2015 has decided on a dividend of €-0.25 per share, a decrease of 50.0-% compared to the previous year's dividend of €-0.50 per share.
As a company that operates internationally, Delticom is exposed to varying types of risk. In order to be able to identify, evaluate and respond to such risks in a timely fashion, Delticom put in place a risk management system early on. The system is based on corporate guidelines for the early risk detection and risk management.
An outline of the risk management process is presented in the Annual Report for fiscal year 2014 on pages 46ff, together with a list of key individual risks. Compared to the Annual Report 2014, the risk situation has not changed materially. Individual risks endangering the company do not exist, and considered together, the aggregate risk does not pose any danger to Delticom's going concern.
Economic environment According to the International Monetary Fund, the global economy is only staging a gradual recovery. Not all countries have digested the impact of the global economic and financial crisis.
Experts forecast stronger economic growth in Europe compared to 2014. However, the degree of recovery differs greatly from country to country. Although reform countries such as Spain and Portugal have since registered slight growth, unemployment remains high despite subsiding unemployment figures.
Due to the currently weak euro, the economy in the eurozone is primarily benefiting from rising exports. In view of the declining unemployment rate, consumers are now also more optimistic. It is still unclear to what extent the eurozone has laid the foundation in the last months for sustainable recovery.
Tyre retail Unlike the previous year, the tyre retail business was not boosted by an early start to the summer business at the beginning of the reporting year. Only the coming months will show to what degree the forecasts of individual market experts regarding a slight recovery in the replacement tyre business will materialise in the current year. For Germany, the German association of tyre dealers (BRV, Bundesverband Reifenhandel und Vulkaniseurhandwerk e.V.) cautiously estimates that there will be no widespread improvement in the situation in 2015 compared to the previous year.
| The fourth quarter is an important quarter in tyre trade due to the winter business. As a result of the mild winter in 2014, excess inventories for winter goods cannot be ruled out in the supply chain. If the coming winter also turns out to be mild, sales prices could come under pressure as well. |
|
|---|---|
| Guidance unchanged | The first quarter only has a comparatively small importance relative to the whole year and in particular with regard to profitability. Delticom will continue to tena ciously strive for cost optimization in 2015 to reach the full-year guidance. |
| At the current time, there is still major uncertainty when it comes to market and price development in the European replacement tyre business in 2015. |
|
| Revenues | The management of Delticom is planning on increasing sales volume in 2015 to exceed that of the previous year. In the case of a deflationary price climate Delticom considers it conceivable that this increase in sales will not necessarily result in a corresponding increase in revenues. For fiscal year 2015, the man agement continues to aim for revenues in absolute terms at least on par with fiscal year 2014. |
| EBITDA | An increase in unit sales results in a rise in volume-based costs. Should these rise more sharply in 2015 than revenues, a positive volume effect could have a negative impact on earnings. Irrespective of this, we are aiming to match at least 2014 EBITDA in 2015 in absolute terms. |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 31.03.2015 | – 31.03.2014 |
| Revenues | 111,339 | 94,283 |
| Other operating income | 4,218 | 2,992 |
| Total operating income | 115,557 | 97,276 |
| Cost of goods sold | –86,814 | –71,199 |
| Gross profit | 28,744 | 26,076 |
| Personnel expenses | –2,196 | –3,636 |
| Depreciation of intangible assets and property, plant and equipment | –2,112 | –2,083 |
| Other operating expenses | –25,787 | –20,062 |
| Earnings before interest and taxes (EBIT) | –1,352 | 294 |
| Financial expenses | –96 | –271 |
| Financial income | 8 | 8 |
| Net financial result | –88 | –263 |
| Earnings before taxes (EBT) | –1,440 | 31 |
| Income taxes | 50 | –10 |
| Consolidated net income | –1,390 | 20 |
| Thereof allocable to: | ||
| Non-controlling interests | –85 | 0 |
| Shareholders of Delticom AG | –1,305 | 20 |
| Earnings per share (basic) | –0.11 | 0.00 |
| Earnings per share (diluted) | –0.11 | 0.00 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 31.03.2015 | – 31.03.2014 |
| Consolidated Net Income | 1,390 | 20 |
| Changes in the financial year recorded directly in equity | ||
| Income and expense that will not be reclassified to the statement of income at a later date | ||
| Changes in currency translation | 525 | –1 |
| Income and expense that will be reclassified to the statement of income at a later date | ||
| Net Investment Hedge Reserve | ||
| Changes in current value recorded directly in equity | –16 | –11 |
| Deferred taxes relating to Net Investment Hedge Reserve | 5 | 3 |
| Other comprehensive income for the period | 513 | –8 |
| Total comprehensive income for the period | –876 | 12 |
| Attributable to non-controlling interests | –177 | 0 |
| Attributable to shareholders of the parant | –699 | 12 |
| in € thousand | 31.03.2015 | 31.12.2014 |
|---|---|---|
| Non-current assets | 56,404 | 58,135 |
| Intangible assets | 46,564 | 47,949 |
| Property, plant and equipment | 8,497 | 8,978 |
| Financial assets | 27 | 25 |
| Deferred taxes | 779 | 705 |
| Other receivables | 538 | 478 |
| Current assets | 130,930 | 105,872 |
| Inventories | 73,570 | 56,151 |
| Accounts receivable | 23,018 | 14,489 |
| Other current assets | 12,283 | 4,707 |
| Income tax receivables | 1,384 | 549 |
| Cash and cash equivalents | 20,675 | 29,975 |
| Assets | 187,334 | 164,007 |
| in € thousand | 31.03.2015 | 31.12.2014 |
|---|---|---|
| Equity | 49,416 | 50,293 |
| Equity attributable to Delticom AG shareholders | 48,606 | 49,305 |
| Subscribed capital | 11,945 | 11,945 |
| Share premium | 25,372 | 25,372 |
| Other components of equity | 642 | 128 |
| Retained earnings | 200 | 200 |
| Net retained profits | 10,448 | 11,659 |
| Non-controlling interests | 810 | 988 |
| Liabilities | 137,917 | 113,715 |
| Non-current liabilities | 15,396 | 16,651 |
| Long-term borrowings | 14,292 | 15,367 |
| Non-current provisions | 401 | 351 |
| Deferred tax liabilities | 703 | 933 |
| Current liabilities | 122,522 | 97,064 |
| Provisions for taxes | 947 | 845 |
| Other current provisions | 1,213 | 1,521 |
| Accounts payable | 96,642 | 75,920 |
| Short-term borrowings | 5,082 | 4,424 |
| Other current liabilities | 18,638 | 14,354 |
| Shareholders' equity and liabilities | 187,334 | 164,007 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 31.03.2015 | – 31.03.2014 |
| Earnings before interest and taxes (EBIT) | –1,352 | 294 |
| Depreciation of intangible assets and property, plant and equipment | 2,112 | 2,083 |
| Changes in other provisions | –258 | –289 |
| Net gain on the disposal of assets | –92 | 0 |
| Changes in inventories | –17,419 | –21,811 |
| Changes in receivables and other assets not allocated to | ||
| investing or financing activity | –16,079 | –15,423 |
| Changes in payables and other liabilities not allocated to | ||
| investing or financing activity | 25,012 | 45,423 |
| Interest received | 8 | 8 |
| Interest paid | –113 | –244 |
| Income tax paid | –987 | 692 |
| Cash flow from operating activities | –9,168 | 10,733 |
| Proceeds from the disposal of property, plant and equipment | 7 | 0 |
| Payments for investments in property, plant and equipment | –88 | –208 |
| Payments for investments in intangible assets | –158 | –4 |
| Payments for investments in financial assets | –2 | 0 |
| Cash flow from investing activities | –241 | –212 |
| Capital transactions with non-controlling interests | 0 | 0 |
| Cash inflow of financial liabilities | 658 | 0 |
| Cash outflow of financial liabilities | –1,075 | –896 |
| Cash flow from financing activities | –417 | –896 |
| Changes in cash and cash equivalents due to currency translation | 525 | –1 |
| Cash and cash equivalents at the start of the period | 29,975 | 11,323 |
| Changes in cash and cash equivalents | –9,826 | 9,624 |
| Changes in consolidation scope | 0 | 0 |
| Cash and cash equivalents - end of period | 20,675 | 20,947 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 31.03.2015 | – 31.03.2014 |
| Liquidity – start of period | 29,927 | 11,500 |
| Changes in cash and cash equivalents | –9,826 | 9,624 |
| Liquidity – end of period | 20,101 | 21,124 |
| Net Cash – start of period | 10,137 | –21,197 |
| Changes in cash and cash equivalents | –9,826 | 9,624 |
| Changes in financial liabilities | 417 | 896 |
| Net Cash – end of period | 728 | –10,677 |
| Net cash refer to short term financial liabilities: | ||
| Net Cash – start of period | 25,326 | –10,337 |
| Changes in cash and cash equivalents | –9,826 | 9,624 |
| Changes in short term financial liabilities | –658 | 9,425 |
| Net Cash – end of period | 14,842 | 8,712 |
| Net cash refer to long term financial liabilities: | ||
| Net Cash – start of period | 14,383 | 285 |
| Changes in cash and cash equivalents | –9,826 | 9,624 |
| Changes in long term financial liabilities | 1,075 | –8,529 |
| Net Cash – end of period | 5,632 | 1,380 |
| Net Invest | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Sub | Reserve from | ment | Net | Non-con | |||||
| scribed | Share | currency | Hedge | Retained | retained | trolling in | Total | ||
| in € thousand | capital | premium | translation | Reserve | earnings | profits | Total | terests | equity |
| as of 1 January 2014 | 11,859 | 24,446 | –181 | 31 | 200 | 15,324 | 51,679 | 0 | 51,679 |
| Net income | 20 | 20 | 20 | ||||||
| Other comprehensive in | –1 | –7 | –8 | –8 | |||||
| come | |||||||||
| Total comprehensive income |
–1 | –7 | 20 | 12 | 12 | ||||
| as of 31 March 2014 | 11,859 | 24,446 | –182 | 24 | 200 | 15,344 | 51,691 | 0 | 51,691 |
| as of 1 January 2015 | 11,945 | 25,372 | 115 | 13 | 200 | 11,659 | 49,305 | 988 | 50,292 |
| Transactions between | |||||||||
| controlling and non-con trolling shareholders |
|||||||||
| Net income | –1,305 | –1,305 | –85 | –1,390 | |||||
| Other comprehensive in | |||||||||
| come | 525 | –11 | 93 | 606 | –93 | 513 | |||
| Total comprehensive |
|||||||||
| income | 525 | –11 | –1,212 | –699 | –177 | –876 | |||
| as of 31 March 2015 | 11,945 | 25,372 | 640 | 2 | 200 | 10,447 | 48,606 | 810 | 49,416 |
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With 188 online shops in 42 countries, the company offers its private and business customers a broad assortment of car tyres, motorcycle tyres, truck tyres, bus tyres, special tyres, bicycle tyres, rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. Further information about the reporting company can be found in the chapter Business Operations and in the chapter Organisation of the annual report 2014.
From 01.01.2015 to 31.03.2015 Delticom had an average of 140 employees (thereof 6 apprentices and interns). The calculation is based on full-time equivalents, thus taking into account the actual work hours.
In many countries, business with car replacement tyres depends to a large extent on the seasons with their different weather and road conditions. For example, the business in the northern parts of Europe and in German-speaking countries is characterized by two peak periods - the purchase of summer tyres in spring and winter tyres in early winter. Volume is generally weaker in the first quarter, as most winter tyres are bought and fitted with the first snow, and thus before the end of the year.
The second quarter is characterized by strong sales: the weather in April and May is usually quite warm and car drivers buy their new summer tyres.
The third quarter is a transitional quarter between the summer and winter business, with unit sales again being somewhat weaker.
In most European countries, the last quarter generates the highest sales as car drivers face difficult road conditions and become aware of the fact that they need new tyres.
Delticom's consolidated interim financial statements as of 31.03.2015 were prepared according to the International Financial Reporting Standards (IFRS), as prescribed by the International Accounting Standards Board (IASB), that were mandatory according to the European Union (EU) Directive. All applicable and mandatory IFRS standards on the balance sheet date were applied, especially IAS 34 (Interim Financial Reporting).
To the extent that there were no changes to standards requiring first-time application, the accounting, valuation and calculation methods explained in the 2014 Consolidated Financial Statements have also been applied in this set of interim financial statements, and apply correspondingly.
These interim financial statements contain all clarifications and information required for annual financial statements, and can therefore be read in conjunction with the annual financial statements as of 31.12.2014.
The Annual Report 2014 is made available on the Delticom website in the section Investor Relations or can be downloaded directly using the following link:
During fiscal year 2014 management reporting was changed. There is no differentiation between the reporting of the previous E-Commerce and Wholesale segments any longer. Delticom is therefore a one-segment company; this change means that the segment information previously reported in the interim reports is no longer presented.
The group of consolidated companies comprises Delticom AG as controlling company, eight domestic and five foreign subsidiaries, all fully consolidated in the interim financial accounts.
Due to its negligible impact on Delticom's net assets, financial position and results of operations, the following companies are not consolidated, but instead recognized as a financial instrument pursuant to IAS 39.
Compared with the Annual Report for fiscal year 2014 there were no changes in the group of consolidated companies.
No significant matters have arisen that affect the assets, liabilities, equity, result for the period, or cash flows, and which are unusual for Delticom AG's business due to their type, extent or frequency. Business trends are explained in the interim management report.
Detailed information with regards to business trends and the profit and loss statement can be found in the chapter Business performance and earnings situation of the interim management report. The chapter Financial and assets position presents additional Information concerning the balance sheet and the cash flow statement.
The following table shows the development of the other operating expenses.
| in € thousand | Q115 | Q114 |
|---|---|---|
| Transportation costs | 9,723 | 7,250 |
| Warehousing costs | 1,104 | 937 |
| Credit card fees | 986 | 867 |
| Bad debt losses and one-off loan provisions | 686 | 510 |
| Marketing costs | 5,258 | 4,785 |
| Operations centre costs | 1,751 | 1,491 |
| Rents and overheads | 1,762 | 1,763 |
| Financial and legal costs | 879 | 969 |
| IT and telecommunications | 533 | 433 |
| Expenses from exchange rate differences | 2,284 | 402 |
| Other | 819 | 655 |
| Total | 25,787 | 20,062 |
Basic earnings per share totalled €-–0.11 (Q1-14: €-0.00). The diluted earnings per share totalled €-–0.11 (Q1-14: €-0.00).
Pursuant to IAS-33, undiluted (basic) earnings per share are calculated by dividing the consolidated net income of €-–1,305,199.33 (previous year: €-20,411.41) by the 11,945,250 weighted average number of ordinary shares in circulation during the financial year (previous year: 11,855,440 shares).
Up to 30.04.2014 were given 15,810 potential shares (financial instruments and other agreements which entitle their holders to subscribe to ordinary shares) from the tranche dated 22.11.2007, 37,500 potential shares from the tranche dated 08.05.2008, 17,500 potential shares from the tranche dated 25.11.2008 and 15,000 potential shares from the tranche dated 30.03.2009.
The exercise prices for the tranches 22.11.2007, 08.05.2008, 25.11.2008 and 30.03.2009 were below the average share prices since the options were issued. As a result all tranches are included in the diluted earnings per share.
The calculation of the diluted earnings per share was based (in accordance with IAS-33) on net income after taxes totalling €-–1,389,719.76 (previous year: €-20,411.41) and the weighted average number of shares outstanding during the fiscal year and the number of potential shares from options totalling 11,945,250 shares (previous year: 11,945,250 shares).
At Delticom's Annual General Meeting on 05.05.2015, the Management Board and the Supervisory Board will propose a dividend of €-0.25 per share (previous year: of €-0.50).
Related companies and persons in the meaning of IAS 24 include the Managing and Supervisory boards of Delticom AG (category persons in key positions), the majority shareholders Binder GmbH and Prüfer GmbH (category companies with a significant influence on the Group), as well as not consolidated subsidiaries (category not cosolidated subsidiaries).
All transactions with related parties are agreed contractually, and conducted on terms as would also be usual with third parties. Transactions which occured during the interim reporting period did not have any significant effects on the earnings, financial and asset positions.
Related companies and persons (Category persons in key positions): In the reporting period, goods and services worth €-15-thousand (Q1-14: €-64-thousand) were purchased from related companies and persons, and goods and services worth €-1-thousand (Q1-14: €-0-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-0-thousand (Q1-14: €-0-thousand) and accounts payable totalled €-1-thousand (Q1-14: €-25-thousand).
Related companies and persons (category not cosolidated subsidiaries): In the reporting period, goods and services worth €-0-thousand (Q1-14: €-0-thousand) were purchased from related companies and persons, and goods and services worth €-0-thousand (Q1-14: €-278-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-187-thousand (Q1-14: €-665-thousand) and accounts payable totalled €-0-thousand (Q1-14: €-0-thousand).
As compared to 31.12.2014, the situation with regards to other financial commitments has not changed significantly. As of the reporting date, there were no contingent liabilities or claims.
There were no key events that occurred after the reporting date.
The interim financial statements and the interim management report has not been reviewed by our auditors.
The website www.delti.com/Investor\_Relations/Entsprechungserklaerung.html shows the current statements made by the Managing and Supervisory boards of Delticom AG pursuant to Section 161 of the German Public Limited Companies Act (AktG).
To the best of our knowledge, we declare that, according to the principles of proper interim consolidated reporting applied, the interim consolidated financial statements provide a true and fair view of the company's net assets, financial position and results of operations, that the interim consolidated management report presents the company's business including the results and the company's position such as to provide a true and fair view and that the major opportunities and risks of the company's anticipated growth for the remaining financial year are described.
Hanover, 13.05.2015
(The Management Board)
WKN 514680 ISIN DE0005146807 Reuters / Bloomberg DEXGn.DE / DEX GR Index membership SDAX, CXPR, GEX, NISAX Type of shares No-par value, registered Transparency level Prime Standard
23 November 2015
13 August 2015 6-monthly report 2015 12 November 2015 9-monthly report 2015 German Equity Forum Frankfurt
| 01.01.2015 – 31.03.2015 |
01.01.2014 – 31.12.2014 |
||
|---|---|---|---|
| Number of shares | shares | 11,945,250 | 11,945,250 |
| 1 Share price on first trading day |
€ | 18.61 | 30.98 |
| 1 Share price on last trading day of the period |
€ | 19.19 | 18.92 |
| 1 Share performance |
% | +3.1 | –38.9 |
| 1 Share price high/low |
€ | 19.19 / 16.46 | 38,41 / 14,55 |
| 2 Market capitalisation |
€ million | 229.2 | 226.0 |
| Average trading volume per day (XETRA) | shares | 10,543 | 19,435 |
| EPS (undiluted) | € | –0.11 | 0.24 |
| EPS (diluted) | € | –0.11 | 0.24 |
| Equity per share | € | 4.14 | 4.21 |
(1) based on closing prices
(2) based on official closing price at end of quarter
| Estimates for 2015 | Estimates for 2016 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Broker | Analyst | Recommen dation |
Target price |
Sales (€m) |
EBITDA (€m) |
EBIT (€m) |
EBIT (%) |
EPS (€) |
Sales (€m) |
EBITDA (€m) |
EBIT (€m) |
EBIT (%) |
EPS (€) |
| NordLB | Frank Schwope | Buy | 23.00 | 532.0 | 18.1 | 12.6 | 2.4 | 0.70 | 561.0 | 20.9 | 14.8 | 2.4 | 0.70 |
| Commerzbank | Andreas Riemann | Hold | 19.00 | 527.0 | 21.9 | 14.5 | 2.8 | 0.81 | 564.0 | 27.7 | 19.8 | 2.8 | 0.81 |
| Hauck | Sascha Berresch | Sell | 12.00 | 506.7 | 15.7 | 10.9 | 2.2 | 0.57 | 527.0 | 20.6 | 16.0 | 2.2 | 0.57 |
| Montega | Tim Kruse | Hold | 20.00 | 510.0 | 15.2 | 7.9 | 1.5 | 0.42 | 540.6 | 24.1 | 19.4 | 1.5 | 0.42 |
| Warburg | Marc-René Tonn | Hold | 18.00 | 516.1 | 16.3 | 8.9 | 1.7 | 0.49 | 562.7 | 23.6 | 18.9 | 1.7 | 0.49 |
| Average | 18.40 | 518.4 | 17.4 | 11.0 | 2.1 | 0.60 | 551.1 | 23.4 | 17.8 | 3.2 | 0.60 |
as of 12 May 2015
| Publisher | Delticom AG |
|---|---|
| Brühlstraße 11 | |
| 30169 Hanover | |
| Germany | |
| Contact Investor Relations | Melanie Gereke |
| Brühlstraße 11 | |
| 30169 Hanover | |
| Phone: +49-511-93634-8903 | |
| E-Mail: [email protected] | |
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