Delticom publishes Semi-Annual Report 2023: R...

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• Delticom publishes Semi-Annual Report 2023: Reclassifications in revenues, increase in operating EBITDA

In the first six months of the current fiscal year, Delticom AG focused on further improving profitability in its operating business and was able to increase operating EBITDA from € 6.7 million to € 7.2 million. At the end of the first six months, operating EBITDA is on plan.

According to ETRMA market data for the tyre industry, demand for replacement tyres in the European market for consumer tyres (passenger, SUV and light truck tyres), the largest subsegment in terms of volume, was down 12 % in the first half of the year compared with the first six months of 2022. Sales of summer passenger car tyres were down 11 % while winter tyre sales fell by 32 %. Sales of all-season tyres were on a par with the previous year. The gloomy consumer sentiment also made itself felt in the domestic online retail sector in H1 2023. According to the German E-Commerce and Distance Selling Trade Association (Bundesverband E-Commerce und Versandhandel e. V. - bevh), e-commerce revenues in the first six months of the current year were 13.7 % down on the previous year.

In a challenging market environment, Delticom AG generated revenues of € 198 million in the first six months of the current fiscal year (H1 2022: € 220 million). In the current year, the previous shop business was supplemented by platform business. The company provides the technical infrastructure and its sales and process know-how to enable external third parties to sell goods online to Delticom's private and commercial end customers. This results in a partial shift of the shop business to platform business. Accordingly, commission contributions are realised for the shifted share of revenues. The year-on-year decrease in revenues mainly results from this reclassification. Gross merchandise value in H1 2023 amounts to € 244 million (H1 2022: € 253 million, -3.8 %).

In the second quarter of 2023, the company generated revenues of € 120 million (Q2: € 129 million). Here, too, the platform business and the corresponding reclassification had an impact on revenues. While demand from private end customers stabilised in the corresponding period, business with commercial end customers was somewhat weaker year-on-year against the background of the market situation. At € 148 million, gross merchandise value for the second quarter was almost at previous year level (Q2 2022: € 148 million). Thus, by the end of the second quarter, it was not possible to fully make up for the decreasing business development of Q1. Due to the market situation, European demand in the summer tyre business is shifting further back in the course of the year compared to the previous year.

The gross margin (gross margin excluding other operating income) increased from 21.2 % to 22.9 %. This improvement is due to a change in the sales mix. In addition, demand for low-priced quality tyres increased due to inflation. In relation to total income of € 215 million (H1 2022: € 239 million), gross profit was 29.1 % (H1 2022: 27.6 %).

Due to the development of the platform business in the first six months of the current year, Delticom AG assumes that a sales volume of around € 30 million will be shifted from the shops in the year as a whole. Therefore, the company is adjusting its forecast for the 2023 financial year with regard to revenues by this amount. The company now expects full-year revenues in a range of € 470 million to € 504 million (previously: € 500 million to € 534 million). The shift of parts of the shop revenues has no negative impact on the profitability of the company. The forecast for the operating EBITDA for the full year remains unchanged in a range between € 14 million and € 18.9 million (H1 2023: € 7.2 million).

The report for the first six months 2023 stands ready for download on the website www.delti.com within the "Investor Relations" section.

Delticom Group - Key Figures

About Delticom:

With its brand Reifendirekt, Delticom AG is the leading company in Europe for the online distribution of tyres and complete wheels.

The product portfolio for private and business customers comprises an unparalleled range of more than 600 brands and over 40,000 tyre models for cars and motorcycles. Complete wheels and rims complete the product range. The company operates 348 online shops and online distribution platforms in 67 countries, serving around 19 million customers. In the online shop Reifendirekt.de, sustainable and resource-saving tyres are labelled accordingly and awarded a sustainability seal.

As part of the service, the ordered products can be sent to one of Delticom's around 30,000 partner garages in Europe for mounting at the customer's request.

Based in Hanover, Germany, the company operates primarily in Europe and has extensive expertise in the development and operation of online shops, internet customer acquisition, internet marketing and the establishment of partner networks.

Since its foundation in 1999, Delticom has built up comprehensive expertise in designing efficient and fully integrated ordering and logistics processes. The company's own warehouses are among its most important assets.

In fiscal year 2022, Delticom AG generated revenues of around 509 million euros. At the end of last year, the company employed 178 people.

The shares of Delticom AG have been listed in the Prime Standard of the German Stock Exchange since October 2006 (ISIN DE0005146807).

On the internet at: www.delti.com