EQS-News

Delticom publishes Q1 business development: Increase in revenues and earnings

EQS-News: Delticom AG / Key word(s): Quarter Results Delticom publishes Q1 business development: Increase in revenues and earnings 13.05.2024 / 15:30 CET/CEST The issuer is solely responsible for the content of this announcement. Delticom publishes Q1 business development: Increase in revenues and earnings

Hanover, May 13, 2024 – Delticom AG (German Securities Code (WKN) 514680, ISIN DE 0005146807, stock market symbol DEX), Europe's leading online retailer for tyres and complete wheels, publishes the key points of its business trends in the first quarter 2024 with this interim announcement.

• Gross merchandise volume (GMV) amounted to € 119 million (Q1 2023: € 96 million)
• Consolidated net income totalled € -1.4 million (Q1 2023: € -2.3 million)
• Full-year forecast confirmed

Delticom AG continued to work successfully in its core business in the first three months of the current fiscal year and improved its operating EBITDA from € -520 thousand to € +820 thousand. Against the backdrop that the 2023 winter season was exceptionally successful, this is necessary in order to meet the full-year forecast.

In the first three months of the current fiscal year, revenues of Delticom group increased by 24 % from € 78 million to € 97 million. This is due to good sales and pre-sales in business with both private and commercial end customers in view of the summer temperatures in February and March.

At € -1.4 million, the increase in revenues led to a 39 % improvement in consolidated net income compared to the previous year (€ -2.3 million). Delticom expects a higher tax rate in 2024 than in 2023, so that the improved consolidated net income in the first quarter is necessary to fulfil the full-year forecast.

The positive business development is the result of both the corresponding weather-related effect and the measures already taken in 2023 to reduce costs and increase profitability, which will now take full effect in 2024.

In terms of revenues and profitability, the first quarter is only of comparatively minor importance in relation to the year as a whole, as it typically represents the transition from the winter to the summer tyre business. In addition, weather-related shift effects are not uncommon in the tyre trade. The development for the year as a whole will therefore largely depend on the winter tyre business in the fourth quarter of 2024. It should be noted that the fourth quarter of 2023 was exceptionally strong due to the weather and that this effect cannot be expected to be repeated.