2010 a ‘Record Year’ for Delticom
After examining its preliminary financial results Delticom has declared 2010 a “record year” for the company. During the 12 month period the online tyre dealer’s revenues increased 34.8 per cent to 419.4 million euros and its customer base across the more than 100 online shops operated in 39 countries grew by almost a million to give Delticom a total of 4.4 million customers.
The winter months contributed strongly to this record-breaking 2010 performance, Delticom reports. Year-on-year, the company’s fourth quarter revenues grew 48.1 per cent to 162.4 million euros, while in the same period the EBIT margin rose to a record high of 15.3 per cent, up from 13.4 per cent in fourth quarter of 2009. “The closing quarter benefited from new German regulations calling for mandatory fitting of winter tyres,” stated Delticom CEO Rainer Binder. “Sales were also boosted by substantial snowfalls across Europe. Despite market-wide shortages we were able to deliver.” On the back of what Delticom calls a “generally favourable pricing environment” over the course of the year, the 2010 EBIT margin came in at 11.4 per cent, a full two per cent year-on-year growth.
Due to the extraordinary winter tyre season and resulting negative base effects, Delticom expects its revenue growth to slow down in the current year. Assuming a normalisation of supply and prices in the coming months, the German based company also expects lower margins for 2011. “Delticom follows a stable growth path, irrespective of seasonal fluctuations. We are confident that the company will continue to perform better than the overall market,” said CFO Frank Schuhardt. Delticom will publish its 2010 financial statements on March 23.