A profitable 3rd quarter of 2015 for TIM SA

After 10 quarters of losses TIM SA achieved positive financial results at all levels. In the 3rd quarter of 2015 the profit from sales amounted to PLN 1.41 million, the operating profit – PLN 1.5 million and the net profit – PLN 1.01 million. 

The consolidated profit from sales for the period 1st-3rd quarter of 2015 reached PLN 1.3 million (compared to PLN 10.14 million loss in the period 1st-3rd quarter  of 2014), the operating profit – nearly PLN 1 million (PLN -9.32 million), EBITDA – PLN 6.9 million (PLN -4.24 million) and the net profit – PLN 347 thousand (PLN -7.96 million). The consolidated revenues on sales after three quarters of 2015 amounted to PLN 408.9 million, i.e. 7.3% more than in the same period of 2014.

The right choice
– The change of the sales model from traditional to hybrid, initiated in 2013, with a large share of the e-commerce channel, after 24 months is beginning to bring positive results. The development strategy we have chosen – pioneering as compared to the entire electrical goods distribution industry – has not been the easiest. Profits at all levels confirm, however, that we have made the right choice – says Krzysztof Folta, the President of the Management Board of TIM SA.

In the 3rd quarter of 2015 the share of e-commerce in the total turnover of TIM SA increased to almost 69% as compared to 49% in the 3rd quarter of 2014.

The e-store TIM.pl is constantly expanding its stock products offer, i.e. the products permanently stored in the Logistics Centre of TIM SA and shipped to customers within 24 hours of placing the order. At the end of the 3rd quarter of 2015 it had almost 60 000 unique products and by the end of 2015 it will reach the level of 70 000.

– Our work on changing the sales model has not finished yet. We are constantly improving it, trying to make it more effective. I expect that even more pronounced positive effects of the model change will be noticeable in the TIM results in the years to come – declares Krzysztof Folta.

Real Property in Siechnice sold
To achieve further extension of the offer and make it more attractive we have decided to enlarge by almost four times the Logistics Centre of TIM SA, which is going to take place next year. At the beginning of November 2015 TIM SA finalized the sales agreement concluded with HE Enterprises Sp. z o.o. concerning TIM’s real property in Siechnice near Wrocław. An agreement for the lease of a part of the real property was concluded along with the sales agreement. Under its provisions TIM SA is going to rent from HE Enterprises for 15 years and 9 months the former building of the Logistics Centre of TIM SA with a storage yard, and also a warehouse building with the surface area of 29.5 thousand sqm. which will be built by HE Enterprises.

Read 4 pages of the 3rd quarter of 2015 summary, with the most important financial data [PDF] >>