The first half of 2015 in TIM Capital Group: the turnover exceeded a quarter billion PLN

The largest distributor of electrical engineering devices in Poland has experienced the best first half of the year in its history in terms of revenues from sale. In TIM SA it amounted to almost 239.1 million and was higher by 12.7% than that achieved in the first half of 2014 and in the entire TIM Capital Group – PLN 256.2 million (increase by 13.1%). 

Further dynamic growth in the sales with the optimal level of costs should result in the operating profit for the entire 2015.

After the completion of the process of changes in the business model in 2014, the year 2015 in TIM SA is the time of improvement of the company’s profitability, mainly through optimization of processes, services and employment. The objective is simple – cost reduction.

– In the first half of 2014 the direct operating costs accounted for nearly 20 percent of the revenues of TIM SA. This year it is less than 14.8%. At the same time the number of consignments leaving our logistics centre increased by over 50%. These figures clearly show how much we were able to optimize – says Krzysztof Folta, the President of TIM SA.

2/3 of the turnover from the Internet
The reduction of costs and the increase of the quota margin by 7.4% compared to the first half of 2014 allowed to achieve EBITDA. In TIM SA it amounted to more than PLN 3.6 million (compared to the loss amounting to PLN 5.4 million in the first half of 2014) and in GK TIM [TIM Capital Group] – PLN 3.5 million (in the analogous period of the previous year: PLN -5.2 million). The Company and the Group recorded a minimal net loss – respectively PLN 0.24 and 0.64 million. For comparison, in the first half of 2014 it amounted to PLN 7.4 and 7.2 million.

In the first half of 2015 the share of the e-commerce channel in the total sales of TIM SA permanently exceeded 60% reaching the level of almost 66% in June. In terms of the items specified in the invoice, the share of the Internet sale amounted up to 86% at the end of the first half of 2015.

It is going to be better than that
– Particularly optimistic is the fact that the first half of the year is always generating less than half of the annual turnover. Due to the seasonality in the construction industry, which we are still connected with to a large extent, about 60% of the sales is realized in the second half of the year – Krzysztof Folta observes. – Maintaining the sales growth with the optimal level of costs should bring operating profit to TIM SA during the year – he anticipates.

Positive results at the operating profit level should be expected also in case of other companies in the TIM Capital Group (Rotopino.pl SA, EL-IT SA and Sun Electro Sp. z o.o.).

Read 7 pages of the 1st half of 2015 summary, with the most important financial data [PDF] >>