H1 2022 in the TIM Group: record indicators, consistent implementation of the companies’ development strategy
The highest ever levels of sales revenue (PLN 772.5 million, +28,2% YoY), net profit (PLN 60.4 million, +40.3% YoY) or EBITDA (PLN 92.5 million, +38.1% YoY) and significantly higher profitability indicators than in the corresponding period of 2021 form the picture of the first half of 2022 in the TIM Capital Group.
Over subsequent months both companies of the TIM Group consistently implement the development strategy, including the new long-term TIM strategy presented in May this year. The company focuses even more on the best possible response to the needs of professionals from the electrotechnical sector.
– Currently the dynamic development of technology, growing expectations of end customers and changing market situation present a major challenge – notices Krzysztof Folta, President of the Management Board of TIM SA. – All these factors have contributed to the formation of the new TIM mission: ‘Make work easier for professionals’ We want to achieve it both by providing a wide range of products under market conditions and maximising the convenience of using the e-commerce TIM.pl platform or by access to knowledge supporting our customers in solving problems that arise in their daily work. 3LP consistently strengthens its position on the contract logistics market. It acquires new customers from outside the TIM Group, develops cooperation with the existing customers and at the same time opens facilities at new locations – adds Krzysztof Folta.
The sales revenue of 3LP SA in H1 2022 amounted to PLN 76.9 million, which means an increase by 9.2% compared to the corresponding period of 2021. The revenue from sales of logistic services to customers from outside the TIM Group increased on the year-to-year basis by 6% to over PLN 34.7 million.
More and more regular and loyal customers, most of whom are installers
Unit-based sales revenue of TIM SA increased slightly more dynamically than consolidated revenue – by 29.5%, to PLN 737.9 million. The distribution of sales in H1 2022 was highly non-standard – sales revenue in Q1 turned out to be significantly higher (by 14%) than that generated in Q2.
– The entire first half of the year was dominated by the sales results of March, which turned out to be better than the corresponding period of 2021 by as much as 65%. Russia’s invasion of Ukraine and rising prices of raw materials and energy caused considerable market uncertainty, which in the first weeks of the war translated into increased demand – says Piotr Nosal, Member of the Management Board and Commercial Director of TIM SA.
While March 2022 brought the sales level whose generation in the near future will be a challenge, customers joining the group of buyers of TIM products stay with the company for longer. At the end of H1 2022, the number of key customers (realising sales higher than PLN 1,500 per month over the last 12 months) increased by over 27% compared to the end of June 2021. The group of loyal customers (realising purchases in at least six of the last 12 months) increased by 17.6% in the same period.
Products used in the area of renewable energy sources constitute an increasingly important sales category. The sales of photovoltaics in H1 2022 amounted to PLN 50.8 million, which means an increase by as much as 96% compared to the corresponding period of 2021. This result was largely determined by the record first quarter, in particular March 2022, after which the expected slowdown on the photovoltaic investment market occurred, caused by unfavourable changes in the manner of settling energy produced by prosumers.
However, it did not mean a persistent decrease of interest in the whole category of RES products or energy efficiency, mainly due to the growing energy crisis, which will have to be faced in whole Europe. In response to these needs, in the first half of 2022 TIM expanded its offer by heat pumps and accessories for their assembly, as well as electric heating systems and ventilation systems allowing the recovery of part of energy from the exchanged air. At the same time, competences and technical knowledge of the team responsible in the Company for selling products from these product categories were developed.
In Q1 2022, for the first time in the TIM history the group of customers with the highest share in TIM revenue was the ‘Installer’ segment. This trend continued throughout H1 2022, in which this segment accounted for almost 44% of the Company’s sales revenue – the value exactly equal to the value generated in the previous year by sales to the ‘Retailer/Wholesaler’ group.
– This results from the consistent implementation of the strategy whose assumptions were presented in May, including pro-sales activities aimed at increasing the share of contracting companies in TIM revenue – says Piotr Nosal.
Record LTM perspective
While the consolidated net profit increased in H1 2022 by 40.3% YoY, the unit profit increased by as much as 68.9% YoY, to nearly PLN 60.8 million. In H1 2022, all basic profitability indicators of the TIM Group increased significantly compared to H1 2021. For example: the consolidated EBITDA margin increased from 11.1% to 12% and the net profit margin from 7.1% to 7.8%.
– While analysing the TIM financial results, a good idea is to adopt a perspective longer than only H1 2022 – explains Piotr Tokarczuk, a Member of the Management Board and the Financial Director of TIM SA. – If we look at the last 12 months (July 2021-June 2022), we will see the highest ever consolidated EBITDA in the amount of PLN 170 million, the TIM Group’s sales revenue amounting to almost PLN 1.5 billion or consolidated assets amounting to PLN 706 million. Without any doubt, the TIM Group is in an excellent financial condition. That is why, even in such a difficult market environment, we have sufficient financial and organisational strength to successfully implement an ambitious strategy of the TIM and 3LP development – adds Piotr Tokarczuk.