Hanover, April 3, 2007 – Delticom AG (WKN 514680, ISIN DE0005146807, stock market symbol DEX) has recorded a substantial year-on-year increase in its results. According to the current figures, the Delticom group recorded revenues totaling € 173.1 million in fiscal year 2006. This corresponds to an increase of 34.0% over the previous year (€ 129.2 million). The strongest sales driver in fiscal year 2006 was the eCommerce segment, where the Internet tire sales company recorded above average revenue growth of 42.2% to € 155.2 million (previous year: € 109.2 million). EBIT was up year-on-year by 78.9% to € 10.2 million (previous year: € 5.7 million). Consolidated net income increased from € 3.3 million in 2005 by 90.9% to € 6.3 million. This corresponds to basic earnings per share of € 1.97 (previous year: € 1.11).
In a year-on-year comparison, the Delticom group has improved its gross profit margin from 22.2% in 2005 to 23.5% in 2006. The EBIT margin has also increased by 1.5 percentage points to 5.9% (previous year: 4.4%). This improvement in margins is mostly due to more favorable purchasing conditions thanks to increasing order volumes and improved efficiency in marketing and logistics.
Although the unseasonably warm winter did not result in more winter tires being sold, Delticom was still able to increase its Q4 revenues yet again. Compared to Q4 2005, the company recorded revenue growth of 45.4% to € 64.2 million (previous year: € 44.2 million) in the final quarter of the year. This is due to the increased demand as a result of the new legal requirement for winter tires in Germany. In addition, Delticom was able to increase the proportion of its foreign sales from 48.4% in 2005 to 51.3% in 2006. In total, the Internet tire sales company acquired 490,000 new customers in 2006, lifting the total number of Delticom’s customers to 1,248,000.
The Managing and Supervisory Boards of Delticom AG will request the General Meeting on May 16, 2007 to approve a dividend of € 1.20 per no-par value share for fiscal year 2006.
The full annual report will be published on April 4, 2006 and can then be downloaded from www.delti.com.
Delticom AG has been a tire wholesaler since 1999, and has sold tires online since 2000. The Delticom group sells its range of products to private and business customers in its eCommerce division via more than 78 online stores in more than 27 European countries and one store each in the USA and Canada. The product range comprises the following product mix or parts thereof depending on the respective market: car tires, motorcycle tires, truck tires, bus tires, the associated rims, complete wheels (rims with tires), select replacement car parts and accessories, engine oil and batteries. The products are supplied, depending on the customer’s instructions, either directly to the customer, to a service partner, i.e., a workshop with which the Delticom group cooperates and which, in some cases, allow tires to be delivered directly to their address to be mounted on the customer’s vehicle, or to a different delivery address. In addition, the Delticom group’s Wholesale division also sells tires to wholesalers and large retailers in Germany and abroad.