2023 in the TIM Group: strong resistance to market downturn, record number of TIM customers

The second highest sales ever, nearly 100,000 customers and a record valuation for TIM as the company chooses the investor to support TIM SA and 3LP SA in its further growth. Below you can read about the highlights of the year 2023 in the TIM Group.

Consolidated and unconsolidated sales did not change to any significant extent in 2023 compared to the previous year, amounting to PLN 1.45 billion and PLN 1.39 billion respectively (-4.8% and -4.6% year-on-year). The situation is different for parameters such as net profit or EBITDA. In consolidated terms, the former (PLN 55 million) was down 46.2% compared to 2022, while the latter (PLN 99.3 million) was down 38%.

“Such a slight decline in revenue demonstrates that TIM’s business model is effective and highly resilient to the downturn in the electrical engineering distribution market, which is far more apparent in other performance parameters. One should be yet objective and note that, even with these declines, the achieved financial result and over PLN 92 million of positive operating cash flows is a significant success of the TIM Capital Group,” states Piotr Tokarczuk, Member of the Management Board and Chief Financial Officer of TIM SA.

Customers as TIM’s strength

A real slump can be seen in the renewables market. In 2023, TIM’s sales of products only in PV systems fell by 55.3% year-on-year, to less than PLN 42.3 million.

“The year was marked by a declining interest in investing in renewable energy sources, despite opportunities for obtaining subsidies for a combined photovoltaic and heat pump system. Each month, the prices of products used in photovoltaic systems dropped,, and this had obviously a major impact on the value of revenue from this range,” explains Piotr Nosal, Member of the Management Board and Chief Commercial Officer at TIM SA. “If we look at TIM’s sales as a whole, such a slight decrease year-on-year is largely attributable to the record number of almost 100,000 customers. The significant year-on-year increase in their numbers is a trend we have been seeing for several years now,” he adds.

In 2023, TIM served an exact total of 99,945 customers in both the B2B and B2C sectors, up by almost 19% compared to 2022, with 68% of the revenue they generated originating from online self-purchases.

At the same time, revenue from the sale in 2023 of 3LP, a logistics company, amounted to PLN 169.4 million, up by 3.86% year-on-year. The total warehouse space managed by the company at six locations also increased from 184 to more than 247,000 sq m.

Farewell to the capital market

In March 2023, following many months of a highly competitive process of reviewing strategic options, the Management Board of TIM SA selected FEGA & Schmitt Elektrogroßhandel GmbH, a company of the international Würth Group, as an investor to support the TIM Group in its further development. The new investor would like to delist TIM SA shares from the Warsaw Stock Exchange. More than a quarter of a century of TIM’s presence on the capital market culminated in a very attractive quotation, in excess of PLN 1.1 billion, resulting from the price (PLN 50.69 per share) offered by the investor in the call for subscription for TIM SA shares. It took the following months until January 2024 for the President of the Office of Competition and Consumer Protection to process the approval for the transaction.

At the moment, TIM is waiting for a positive response from the Office of the Financial Supervision Authority to the request submitted by the Company for consent to delist its shares from the regulated market operated by the WSE.

“This is probably the last time we will present our annual results in the formula prescribed by our status as a public company. February 2024 will mark twenty-six years since the first trading session in which TIM shares were listed. Seeing where TIM is today, I am aware that we would not be here without the decision to enter the capital market and without the trust placed in us by our shareholders,” emphasises Krzysztof Folta, President of the Management Board of TIM SA. “I would like to thank you for this from the bottom of my heart, on behalf of the TIM’s Management Board and staff. I invite you to continue to follow our business and keep your fingers crossed for the TIM Capital Group,” he adds.

See the annual report for 2023 >>

See the consolidated annual report for 2023 >>