I half of 2018 in the TIM Group: record turnover, profits on all levels

In the first half of 2018, sales revenues of the TIM Capital Group amounted to over PLN 392 million, i.e. up by 19.3% more than in the corresponding period of 2017. This is the best first half-year in the history of the Group in terms of revenues. This record is accompanied by EBITDA higher by more than PLN 12 million than the result achieved in the first half of 2017. 3 LP logistics company is doing very well, as after the first half of 2018 it not only recorded a 28% increase in revenues YOY, but also achieved positive financial results at all levels.

TIM SA, responsible for over 90% of the Group’s revenues, generated PLN 354.5 million turnover (+ 18.7% y/y), of which over 71% was earned by online sales. The company earned PLN 4.45 million operating profit and nearly 3.7 million net profit, compared to loss recorded a year earlier.

Benefits from the change of the model

The growth in turnover was, of course, influenced among others by the still good condition in the construction industry.

“Our revenues from sales to customers from the industrial sector increased by as much as 18 percent. I would also like to draw your attention to another factor: the structure of product sales. We recorded the most dynamic over 20-percent growth of revenue in the first half of the year  in the product segments characterized by the highest margin, such as cable route systems (+23.5% y/y), auxiliary equipment (+23.6% y/y) or lighting ( +20.9% y/y)”, notes Krzysztof Folta, the President of the Management Board of TIM SA. “This is further evidence of successful detuning of TIM from business cycles in the construction sector and acquiring customers in other industries, as well as selling products that are more profitable for us. Importantly, we are not talking about one-off shopping, but regular purchases from our offer. There are more and more such customers thanks to the change in the operating model”, adds Krzysztof Folta.

At the end of the first half of 2018, the number of customers of TIM SA who purchased during at least six of the last 12 months, amounted to 4.095. i.e. by about 9.9% more than the year before.

Definitely positive

Net consolidated profit amounted to PLN 6.65 million compared to PLN3.31 million loss recorded during the first half of 2017.

“The results has been achieved not only due to the dynamically growing turnover and gross margin on commercial activity, but also due to slower increase in operating costs, resulting from a more complete use of 3LP SA Logistics Center in Siechnice in Wroclaw”, explains Piotr Tokarczuk, Member of the Management Board and CFO of TIM SA.

The greater use of the facility managed by 3LP SA is primarily the effect of a very large increase in the share of external customers in the revenues of 3LP SA from logistic services – from 6% after the first half of 2017 to 24% after the first half of 2018. This, in turn, led to 132.5% growth of TIM Group’s revenue from the sale of services which amounted to over PLN10.72 million.

Profitable logistics company

Meanwhile, the 3LP center in Siechnice, and therefore the company itself, has continued to grow dynamically. A new hall is under construction with an area of 10.5 thousand sq m, similar to the one used by TIM for the first 8 years of the facility’s operation. After the investment is complete, the total area of the 3LP SA Logistics Center will exceed 50,000. sqm.

“The numbers and the growing interest of external customers confirm what I have been saying for several years: 3LP is the black horse of the TIM Capital Group. The company recorded a 28% increase in revenue year-on-year after the first half of the year. On July 1, 2018 it had been two years since the company started operation. In the second full year of presence on the market it is profitable at all levels – from profit from sales to net income, and the results generated are above the average in the industry”, says Krzysztof Folta.

See the consolidated semi-annual statement >>