TIM Capital Group: this is the first time when after the first quarter the turnover exceeded PLN 200 million, a historical level of EBITDA

Revenues from sales of the TIM Capital Group in the first quarter of 2019 amounted to almost PLN 207.6 million (+ 7.0% y/y). They are accompanied by PLN 7.1 million profit on sales (+ 132.6% y/y) and the highest level of EBITDA in history for the first quarter (PLN 11.9 million, + 110.7% y/y). 

The turnover of TIM SA has increased by 7.2%, to PLN 188.1 million of which nearly 72% was generated by online sales. The unit result on the sale was higher by 188.9% that that obtained in the first quarter 2018 and amounted to PLN 7.3 million.

– We have had the best January, February and March in history. In two out of three months our monthly turnover exceeded PLN 60 million, and in March it almost exceeded PLN 70 million, which was the third best month in the history of TIM. Confirmation of the effectiveness of our business model is not only the growing revenues from sales but also an almost 190% increase in the result on sales despite the high competition on the market. This is primarily the result of the increase of the percentage gross margin by 2.9 percentage points – says Krzysztof Folta, the President of the Management Board of TIM SA.

The share of intermediaries (resellers) in the structure of revenues of TIM SA – as per the company’s intentions – decreased in favour of customers from the installers sector. Particular attention should be paid to the assortment structure of the TIM sales. Although it was close to the one recorded in the first quarter of 2018, this has been the first time when the group “components and switchgears” had the largest share in the turnover (31.1%).

– This is the result of our systematic efforts to increase the sales of the most profitable product groups. As a result, components and lighting (10.9%) and electrical installation equipment (9.7%) already account for more than half of TIM’s revenues from sales – notes Piotr Nosal, Board Member and Commercial Director of TIM SA.

The net result of the TIM Capital Group in the first quarter of 2019 amounted to  almost PLN 3.9 million as compared to PLN 2.4 million a year before (+ 62.5% y/y). Consolidated EBITDA was the highest in the Group’s history – PLN 11.9 million, i.e. over 110% more than in the first quarter of 2018.

– The main influencing factor was, of course, the dynamic increase in sales revenues. It is worth noting that it was accompanied by an increase in operating costs (by 4.9% y/y) which was slower than the growth of revenues, which, among others, was the result of the increasing efficiency of using the operational capabilities of the Logistics Centre in Siechnice managed by our subsidiary 3LP SA – emphasizes Piotr Tokarczuk, Board Member and Financial Director of TIM SA.

See the consolidated quarterly report >>