TIM Capital Group: Q.1 the best 1st quarter in history in terms of turnover, profits at all levels

In terms of the revenue from sale, the first quarter of 2018 was the best opening of a year and the second best quarter in the history of TIM SA and TIM Capital Group. The consolidated turnover amounted to almost PLN194 million (+18.9% YOY), and the unconsolidated turnover reached PLN 175.47 million (+18.8% YOY). The record-breaking revenue was accompanied by unconsolidated and consolidated profit. Profit on sale and operating activities was reported also by the 3LP logistics company.

The revenue of TIM SA from the e-commerce channel amounted to more than 70%. “Since we changed the operating model in 2013 and began online sale, we have been gradually getting more and more independent from the tide in the construction sector, which is why for many quarters we have noted increased turnover. In addition, the higher dynamics of such growth reflects the ongoing revival of investments. “Importantly, we are talking about the winter months, which gives us an additional reason to be optimistic about the subsequent quarters,” comments Krzysztof Folta, the President of the Management Board of TIM SA.

In the 1st quarter of 2018, TIM Capital Group generated a positive result at all levels of the profit and loss account. Net profit in Q1. 2018 amounted to PLN 2.4 million and was by PLN 3.8 million higher than in Q1. 2017 (PLN1.4 million loss in the preceding year).

“The positive results were the effect of not only the record-breaking turnover, but also operating cost which increased by 15.7%, so it was increasing slower than the revenue. In this context, it is worth noting that the efficiency of 3LP operation increased due to better use of the operating capabilities of the Logistics Centre in Siechnice near Wrocław,” says Piotr Tokarczuk, a Member of the Management Board and CFO of TIM SA.

Profitable 3LP SA, 24% of revenues from outside the TIM Group

The first quarter of 2018 brought 32-percent growth in the revenue of 3LP SA, YOY. The share of revenue from logistics services from external customers (from outside TIM Capital Group) increased from 6% in Q1. 2017 up to 24% in Q1. 2018. Importantly, the logistics company in Q.1 2018 recorded profit on sale and operating activities.

“We completed the implementation of further elements of advanced automation –  a storage of the shuttle-system type and an automatic sorter. Thay are the state of the art systems of this type in Central Europe. They are currently used at the level of 40-50%; however, we are having advanced talks with potential customers,” says Krzysztof Folta.

Current customers of 3LP SA include one of the largest online sellers of tires and car accessories in Poland and Europe (only in April 2018, during the peak season of changing wires for the summer, 153 thousands of tires left Siechnice) and a global online distributor of nutritional supplements (orders shipped to 12 countries of the European Union).