Delticom revenues fall on weak summer tyre market

ERJ staff report (DS)

Hanover, Germany - Delticom, Europe's largest online tyre retailer declared lower sales and profits for the six months to June. The company blamed the reverse on poor summer weather leading to poor sales of summer tyres across Europe.

The company reported revenues of € 193.3 million in the six months, a fall of 2.5 percent year-on-year. Earnings before interest and taxes (EBIT) amounted to € 13.2 million, a fall of 29.2 percent on the same period a year before.

According to a first draft evaluation of a poll among German tyre dealers conducted by the BRV (Bundesverband Reifenhandel und Vulkaniseur-Handwerk e. V.), the first five months of the year saw a decline of revenues for summer tyres of approximately 15 %. As a result, said Delticom it could not blame the poor performance on “the poor consumer sentiment in the crisis-ridden European countries.”

Rainer Binder (Co-CEO): "The European summer tyre markets are in distress. This does not leave us unaffected. Still, Delticom's business model has proven to be flexible and resilient. We are winning market share." Management plans for H2 volumes and gross margins to be higher year-on-year, on the back of attractively priced winter tyre stocks.

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Press release from Delticom