Record revenues and more than doubled net profit – historical year 2021 in TIM Capital Group
Achieving the objectives set in the strategy for 2019-2021, including exceeding the PLN 1 billion unit sales revenues for the first time. Record financial results of both companies, historical growth in the number of TIM S.A. customers and extremely ambitious development plans of 3LP S.A. This is how TIM Capital Group presents itself at the moment of publishing the results for 2021.
Consolidated and unit sales revenues in 2021 amounted to PLN 1.31 and 1.25 billion respectively (+23.4% and +33.8% YOY). Revenues from the sale of 3LP S.A. increased by 24% year on year – reaching almost PLN 142.2 million.
– The year 2021 will be permanently inscribed in the history of TIM. It was a period when we achieved two main financial objectives of the TIM medium-term strategy for 2019-2021. The first was to achieve above-average EBITDA margin. The second – much more symbolic and imaginative – to exceed the level of PLN 1 billion of unit annual sales revenues, which took place in the last days of October – points out Krzysztof Folta, President of the Management Board of TIM S.A.
The B2B e-commerce market is developing very dynamically across Europe and further growth forecasts tend to be underestimated. The latest forecasts based on predictions of the US Department of Commerce assume that the value of turnover in this segment in Europe will reach almost USD 2 trillion in 2025 compared to 1.15 trillion in 2021.
– Both these estimates and the success of our existing strategy allow us to look optimistically into the future and to set new, ambitious goals for TIM. We will present them already in May in the new strategy of the company – announces Krzysztof Folta.
Confident in TIM
The year 2021 was also a record year for TIM in terms of the number of customers. The Company acquired 24.4 thousand new users of the TIM.pl platform compared to 18 thousand acquired in 2020 (+35.7% YOY). On the other hand, the total number of customers who purchased at least once in 2021 was nearly 51.8 thousand, compared to 33.8 thousand in 2020 (+53.1% YOY). At the end of December 2021, the number of key customers, i.e. those realizing sales higher than PLN 1,500 per month in the last 12 months, was 18,102 (+25.2% YOY).
– These are record values and dynamics of growth. It is important to note that they were observed in the year when the epidemic restrictions, including restrictions on traditional trade, were already much smaller. This confirms that we are facing a lasting trend – says Piotr Nosal, Member of the Management Board and Commercial Director of TIM S.A. – In the past year there was also an increase in the number of loyal customers by 18.7%, i.e. those who made purchases in at least six out of the last twelve months. This indicates that customers are increasingly convinced of our business model and significant competitive advantages, thanks to which customers choose TIM – added Piotr Nosal.
The year 2021 marked a very good economic situation in the renewable energy sector. The revenues of TIM from the sale of materials related to the photovoltaic market amounted to PLN 79.4 million, which means an increase by 134.5% compared to 2020. The share of photovoltaic in total sales was 6.34% (+2.7pp YOY). Last year, TIM extended its RES offer to include heat pumps.
Great financial situation
In 2021, TIM Capital Group generated a net profit of PLN 91.8 million, which means an increase by 147.2 % YOY and TIM itself – PLN 82.5 million (+129.0%). Consolidated EBITDA reached the level of nearly PLN 144.6 million, which means an increase by 79.6% compared to 2020.
– The net result was mainly influenced by the improvement of operating profitability in both Group companies. The increase in operating costs was slower than the increase in revenues. The consolidated operating profit amounted to PLN 121.6 million and was 108.4% higher compared to 2020 – emphasises Piotr Tokarczuk, Member of the Management Board and Financial Director of TIM S.A.
A very good financial condition of the TIM Group allows the companies to continue their dynamic development and allows TIM to implement the dividend policy for 2021-2023, presented in spring 2021.
– The Group’s financial debt is systematically declining. At the end of the previous year, it amounted to PLN 83 million, compared to PLN 92 million at the end of December 2020. We also have a very low net debt to EBITDA ratio of the Group. At the end of December 2021, the net debt to EBITDA ratio amounted to 0.57, compared to 1.01 last year – added Piotr Tokarczuk.
In 2019-2021, TIM paid the shareholders a total of PLN 93.2 million as a dividend. In the year 2021 alone, the Company’s shareholders received as much as PLN 48.8 million.
Tripled storage space in two years
The situation on the Polish and European e-commerce market is also favourable for 3LP, a company specialised in contract logistics services for this sector. While the company’s sales revenues increased by almost 1/4 YOY, in the case of revenues from sales of logistic services to external customers (i.e. other than TIM S.A.), this increase amounted to as much as 47% YOY (up to PLN 62.4 million). 3LP S.A. plans shortly to debut on the Warsaw Stock Exchange.
– Another year of dynamic growth of revenues of 3LP is, on the one hand, the effect of a rapid growth in the scale of the company’s customers’ activity, operating on an attractive and strongly growing e-commerce market. Let me remind you that among them there are companies such as IKEA or Oponeo.pl. On the other hand, it is the result of consistently acquiring further external business partners. Development plans for the coming years are extremely ambitious. The funds obtained from IPO will also help in their implementation – says Krzysztof Folta, also acting as Chairman of the Supervisory Board of 3LP S.A.
The development strategy of 3LP assumes a rapid increase in the total managed warehouse space – from the current 80 thousand sq. m to 180 thousand sq. m at the end of 2022 and 240 thousand sq. m at the end of 2023. Another warehouse hall with an area of 25 thousand sq. m is currently under construction in Siechnice, where the company’s headquarters and main logistics centre are located. As much as 60% of this area will be fully automated (shuttle system).