DGAP-News: Delticom AG / Key word(s): Half Year Results/Half Year Results 
Delticom AG: Delticom increases revenues in its core business by 6.5 % and achieves a positive consolidated net income 
already on a half-year basis 
2021-08-12 / 12:04 
The issuer is solely responsible for the content of this announcement. 
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Delticom increases revenues in its core business by 6.5 % and achieves a positive consolidated net income already on a 
half-year basis 
Hanover, August 12, 2021 - Delticom AG (German Securities Code (WKN) 514680, ISIN DE 00005146807, stock market symbol 
DEX), Europe's leading online retailer for tyres and complete wheels, today publishes its report for the first half 
year of 2021. 
  . Revenues in core business in Q1 21 +14 % yoy, H1 21 +7 % yoy 
  . EBITDA in Q2 21 almost doubled to ? 7.0 million (Q2 20: ? 3.8 million) 
  . Positive consolidated net income in the amount of ? 1.0 million in H1 21 (H1 20: ? -5.9 million) 
  . Increase in equity by ? 16.3 million in H1 21 due to capital increases; 13.5 % equity ratio as of 30.06.2021 
Business in the first six months 
Market environment. Even though retailers were able to sell 8.4 % more tyres to consumers in Germany in the first half 
of 2021 compared with the same period of the previous year, the German passenger car replacement tyre business as a 
whole is still well below the pre-pandemic level at the end of the first six months of the current year. According to 
estimates by the European Tyre and Rubber Manufacturers' Association (ETRMA) and the German Rubber Industry Association 
(WdK), a total of 13.5 % fewer passenger car tyres were sold by retailers to consumers in the first six months of the 
current year compared to the corresponding period of H1 2019 - and thus before the sharp slump in the first half of 
2020 caused by corona. A 19.2 % decline in summer tyre sales compared to the more than 6 % drop in sales already 
recorded in the first half of 2019 contrasts with a 21.2 % increase in all-season tyre sales. Sales volumes in the 
winter tyre business were 34.3 % lower than in the first half of 2019. 
Looking at the European replacement tyre market, ETRMA market data shows a similar picture for the tyre industry. In 
the largest sub-segment by volume, consumer tyres (passenger, SUV and light truck tyres), demand for tyres fell by 1.9 
% in the first half of the year compared to the first six months of 2019. This corresponds to a decline of around 2 
million units. The significantly higher demand in the first six months of the current year compared to the previous 
year reflects the expectation of a return to normality at the European level, following last year's severe slump in 
sales figures by more than 20 % or more than 22 million tyres due to corona. 
Revenues. In the first six months of the current fiscal year, the Delticom Group generated revenues of ? 249 million, 
an increase of 4.7 % after ? 238 million in the comparable period. The revenues contribution of the non-core activities 
discontinued in the course of last year amounted to around ? 4 million in H1 2020. Accordingly, growth of 6.5 % was 
achieved in the core business in the first six months of the current year. Following the pandemic-related slump in 
sales in the European passenger car replacement tyre business last year, the recovery in the first six months 2021 is 
still very uneven in the individual European countries. In the reporting period, the company's focus remained on 
generating sufficiently profitable revenues. 
In total, the Delticom Group generated revenues of ? 102 million in the first quarter of the current fiscal year (Q1 
2020: ? 93 million, +9.9 %). The non-core activities closed in the course of 2020 still contributed ? 3.5 million to 
consolidated revenues in Q1 2020. Accordingly, growth of more than 14 % was achieved in the core business in Q1 2021. 
In contrast to the previous year, spring-like temperatures at the end of March brought forward the start of the summer 
tyre season. In addition, Easter this year fell at the beginning of April and was therefore two weeks earlier than last 
year. For many safety-conscious drivers, Easter represents the time to switch to summer tyres according to the rule of 
thumb "from Easter to October", depending on the prevailing weather and the associated road conditions. Due to the 
pull-forward effects described above, business was particularly strong in March. 
In the second quarter, the company generated revenues of ? 147 million, an increase of 1.4 % compared with the same 
quarter last year (Q2 2020: ? 145 million). Adjusted for the revenues contribution of the non-core activities closed in 
the course of 2020, growth in the core business in Q2 2021 amounts to 1.6 %. Due to the aforementioned pull-forward 
effects in the traditional refitting countries and correspondingly strong March business, demand in April was weaker 
than in the corresponding prior-year month. With vaccination rates rising and incidence levels declining, European 
countries cautiously eased the restrictions during the second quarter. Although overall replacement tyre demand in 
Europe gained momentum in the first six months compared to the previous year, the recovery in individual European 
countries has been uneven. In selected countries, which play an important role with regard to the further course of the 
season after the seasonal peak, growth momentum in the second quarter remained rather subdued. 
Gross margin. The cost of goods sold (COGS) is the largest expense item; it considers the purchase price of sold 
products (mainly tyres). Group COGS increased by 5.9 % from ? 182 million in H1 2020 to ? 192 million in H1 2021. The 
company achieved a gross margin simple (gross margin excluding other operating income) of 22.9 % in the reporting 
period, after 23.7 % in the corresponding prior-year period. The decline in gross margin is not of an operational 
nature. For parts of the business, transport costs have to be recognized in cost of materials due to a change in 
reporting requirements since last year. This reclassification leads to a corresponding effect in the gross margin in a 
year-on-year comparison. In the first six months of the current year, the focus remained on generating sufficiently 
profitable revenues. 
Other operating income. Other operating income increased in the reporting period by 86.1 % to ? 16.5 million (H1 2020: 
? 8.9 million). Income of ? 2.8 million relates to one-off effects. An amount of ? 0.3 million was generated from the 
sale of land by a subsidiary. A further ? 2.4 million relates to income contributions from project businesses. A good 
portion of this comes from the project already realized at the end of the last financial year, whose contribution to 
income could not, however, be fully recognized in the 2020 financial year. 
Gross profit. In view of the increase in revenues and the rise in other operating income, gross profit amounted to ? 
73.5 million, after ? 65.3 million the previous year (+12.6 %). Gross profit in relation to total income of ? 266 
million (H1 2020: ? 247 million) amounted to 27.7 % (H1 2020: 26.5 %). 
Personnel expenses. On average, the company employed 176 staff in the first six months of the current fiscal year (H1 
2020: 207). Personnel expenses amounted to ? 7.0 million in the reporting period (H1 2020: ? 7.5 million). The 7.2 % 
decrease is mainly due to the closure of non-profitable subsidiaries in the past year and the associated staff 
reductions. The personnel expense ratio (ratio of personnel expenses to revenues) in H1 21 amounted to 2.8 % (H1 2020: 
3.2 %). 
Other operating expenses. The largest single item within other operating expenses is transport costs. These amounted to 
? 23.7 million after ? 24.1 million in the comparative period. The decrease of 1.7 % is mainly due to the change in 
reporting requirements. For parts of the business, transport costs are now included in the costs of goods sold and must 
be recognized accordingly. In fiscal year 2020, this adjustment was made retrospectively for the full year in December 
in connection with the audit of the annual financial statements. The share of transportation costs against revenues in 
H1 2021 amounted to 9.5 % (H1 2020: 10.1 %, before reclassification). Excluding the effect from adjustment, the 
transportation cost ratio in H1 2021 is with 10.1 % of revenues unchanged compared to the previous year. 
Marketing. In the reporting period, ? 8.9 million (H1 2020: ? 8.4 million, +6.1 %) was spent on marketing. The increase 
in marketing costs is in line with the increase in revenues in the core business. Marketing expenses as a percentage of 
group revenues were 3.6 % (H1 2020: 3.5 %). 
EBITDA. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter stood at ? 7.0 
million (Q2 2020: ? 3.8 million, +82.3 %) and was significantly higher than in the previous quarter (Q1 2021: ? 1.1 
million, Q1 2020: ? -5.3 million). EBITDA amounted to ? 8.0 million in the reporting period (H1 2020: ? -1.5 million, 
+643.4 %). This corresponds to an EBITDA margin of 3.2 % (H1 2020: -0.6 %). On a half-year basis, earnings before 
interest, taxes, depreciation and amortization were impacted by restructuring costs of ? 3.0 million (H1 2020: ? 3.9 
million). Thanks to the one-off effects achieved within other operating income, the cost burden from the restructuring 
was almost fully offset in the reporting period. 
Financial and Legal. Financial and legal expenses in the reporting period amounted to ? 6.0 million, after ? 6.3 
million the previous year (-4.6 %). Cost savings of around ? 0.9 million in connection with the restructuring offset 
the costs of the successful capital increase, which were not passivatable via equity, as well as increased auditing and 
acquisition costs. 
Depreciation. Depreciation and amortization amounted to ? 5.3 million in the reporting period, compared with ? 4.7

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August 12, 2021 06:04 ET (10:04 GMT)