Q1-Q3 2021 in the TIM Group: record turnover, high profitability, outstanding offer [PRESENTATION]

Consolidated revenues (PLN 950.6 million) higher by 1/4 and unit profit (PLN 904.9 million) – by more than 1/3 in comparison with the corresponding period of 2020. The Group’s net profit (PLN 69.6 million) increased by 250% y-o-y. The TIM Capital Group after three quarters of 2021 does not slow down. The coming months will be marked by the investment in the new e-commerce platform and logistics as well as the preparation of the 3LP S.A. debut on the Warsaw Stock Exchange. 

Practically all the most important financial ratios after 9 months of 2021 have reached the highest levels in the 34-year history of TIM.

“Such good results have enabled us to decide to pay an advance payment of dividends for the year 2021 even before Christmas,” says Krzysztof Folta, the President of the Management Board of TIM SA. “We share our success with the shareholders, but we are equally happy to ‘reinvest’ it in further development. In such a competitive industry as e-commerce, it is the only way to maintain a competitive advantage as well as to keep pace with customers’ expectations. That is why we are working intensively on the TIM 2.0 project, which involves among others the reconstruction of our IT resources and migration of the TIM.pl platform to Magento 2 as well as on the company’s strategy for the coming years,” says Krzysztof Folta.

Availability and wide range of the offer as distinguishing features of the market 

The offer of the TIM.pl platform is becoming increasingly popular. There are several reasons for which this is happening.

“We are planning our warehouse stocks better and more precisely, which, due to the dynamically changing availability of products, are greater than two-three years ago. This makes TIM.pl a more attractive place to buy online. We take overtaking actions, diversify sources of supply, also through an alternative sales model, which is a hybrid marketplace. We want TIM.pl to be the first choice – where customers will be able to meet all their purchasing needs,” explains Piotr Nosal, Member of the Management Board and commercial director of TIM SA. “Availability is our advantage, which is presented by new customer registrations at TIM.pl. In the third quarter of 2021, there were 5950 of them in comparison to 4135 in the corresponding period of 2020 and less than 3400 before two years,” says Piotr Nosal.

“For some time, the most frequently registering group of customers have been installers – they account for more than 50% of all registrations. After nine months of 2021, the share of sales to this segment increased by 2 percentage points in the sales structure. This is a consequence of pro-sales activities aimed at increasing the participation of installers in the total revenues generated by TIM.”

High profitability 

The consolidated net profit of PLN 69.6 million and the EBITDA of the TIM Group, reaching PLN 109.8 million (+117.5% y-o-y) after nine months of 2021, is largely the result of an increase in sales revenues and good profitability management. As a result, the EBITDA margin of the TIM Group amounted to 11.5% after three quarters of 2021 (vs 6.6% after Q3 of 2020), and net profit margin – 7.3% (vs 2.6% in the corresponding period of 2020).

“The improvement in the profitability of the activities of the TIM Group was also visible due to the fact that, regardless of business development and taking care of the margin, we continuously work to optimise the processes. This allows us to limit the increase in the costs of basic activity” emphasises Piotr Tokarczuk, Member of the Management Board and financial director of TIM SA. “In the first three quarters of the current year, there was a 18 percent increase in operating costs year-on-year, while the consolidated revenue increased by 36%. The effect of the operating leverage resulted in a gradual improvement of the profitability of the TIM Group,” observed Piotr Tokarczuk.

IPO and focus on automation 

Not only TIM is driven by the need of further dynamic development, but also 3LP company, specialising in logistics services for the e-commerce sector. The debut on the Warsaw Stock Exchange planned for Q1 2022 will be supported by the public offering, which will enable financing, among other things, automation of processes in the new hall in Siechnice near Wrocław, the development of the managed warehouse space and investments in sustainable development of the company in accordance with the adopted ESG strategy, including renewable energy.

“We operate in accordance with the ‘asset light’ model. We do not incur expenses for the construction of warehouses, and we can focus on their equipment in the most modern automation systems, increasing the efficiency and good performance of logistics processes, enabling dynamic operational scaling, adapting business to prevailing market conditions and increasing efficiency. We are constantly developing dynamically, as evidenced by the results achieved,” says Maciej Posadzy, President of the Management Board of 3LP S.A.

“The company’s revenue after three quarters of 2021 reached PLN 102.5 million (+28% y-o-y). For 9 months of 2021, 3LP SA has already shipped 3.73 million deliveries (+32.7% y-o-y). We are also working on extending the scope and period of cooperation with current key customers. We will keep you informed about the details in the near future,” says Maciej Posadzy.

See the consolidated quarterly report for Q3 2021 (POLISH only) >>