TIM has achieved its strategic goal: over PLN 1 billion of sales revenue since the beginning of the year
Unconsolidated revenues of TIM SA, calculated cumulatively since 1 January 2021, have exceeded PLN 1 billion. Thus, TIM has met all the main financial targets of the company’s medium-term strategy for 2019-2021.
However, one billion in annual sales revenue was set as a target well before April 2019, when TIM’s Management Board adopted and published the strategy. This level had already become an informal target for TIM SA several years earlier. Krzysztof Folta, President of the Management Board, first mentioned it in a press interview in 2014, when TIM’s revenue was below 500 million zlotys and half of it was generated by online sales.
“At that time, there were many voices saying that a billion is completely unrealistic”, recalls Krzysztof Folta. “It turned out, however, that the change of the operating model and a consistent focus on development in the area of e-commerce, in conjunction with the systematic and effective work of the entire TIM team, allowed us to achieve this goal, more than two months before the end of the year. Since March 2021, we have closed every month at over 100 million. In September, we surpassed 120 million for the first time, and the growth of our e-commerce allows us to assume further dynamic revenue growth in the coming months. We are working intensively on the development strategy for the next years. We are going to announce it at the beginning of the next year. I am convinced that the new ambitious goals included in it will allow for even more dynamic development of both TIM and the entire TIM Group”, adds Krzysztof Folta.
TIM is changing and so are customers
The product portfolio available to buyers at TIM.pl has grown from more than 11,000 unique indexes at the start of online sales in 2013 to more than 276,000 at the end of H1 2021, including 125,000 products with specific availability in terms of number of units and lead time.
“We continue to have the widest and most diversified range of electrotechnical products, while at the same time enriching it with new assortment groups, mainly through new sales models such as the hybrid marketplace. The profile of our customers has also been changing in an evolutionary way over the years. On the Internet, they look not only for a wide availability of products at attractive prices, but also for knowledge, advice and exchange of experience. We are striving to meet these expectations – at TIM.pl, in social media, including our own service ‘Łączy nas napięcie’”, says Piotr Nosal, Member of the Management Board and Chief Commercial Officer of TIM SA.
TIM, which decided to go into e-commerce years ago, not only has revolutionised its own business model, but also has become a pioneer of online sales of electrotechnical products in Poland and a leader of the entire Polish B2B e-commerce sector.
“We are improving every day, using our experience. We carry out all sales remotely, constantly modifying the TIM.pl platform to make it the most useful tool for each of our customers. “The fact that we do this effectively is evidenced by the growing number of new clients who are aware of the need to move their business to the digital world,” notes Piotr Nosal.
Sales vs. results
One billion in annual revenue was one of the two main financial targets of the company’s 2019-2021 strategy. The other target, one that had been already achieved, was to achieve an EBITDA margin of at least 3.6%.
“Very good sales do not have to automatically translate into a company’s financial result, but in TIM’s case they do. We deliver increasingly higher sales revenues, but we also pay great attention to margin and cost management with an excellent end result”, notes Piotr Tokarczuk, Member of the Management Board and Chief Financial Officer of TIM SA. “That is why TIM’s unit EBITDA profitability has long exceeded the target set in the strategy and for the last 12 months amounts to 7.5% on average. Such a good financial condition allows for further effective and dynamic development of the company and the entire TIM Group. It certainly also pleases the shareholders with whom we share the profits generated. For the last three financial years, we have already paid out PLN 90 million in dividends”, says Piotr Tokarczuk.
Marking the value of the TIM Group to market
TIM’s excellent condition also allows for the development of 3LP, a company belonging to the TIM Group, which specialises in logistics services for the e-commerce sector.
“Logistics is the key to success in online sales, so 3LP is a very important part of TIM Group’s presence in the e-commerce segment. The services offered by 3LP are gaining more and more recognition, as evidenced by the fact that already more than half of this company’s revenue from logistics services comes from entities outside the TIM Group. 3LP is a dynamically growing entity for e-commerce services in Poland. To make it develop, we want to raise additional capital. IPO, which we are now working on intensively, will allow 3LP to release the value of the company and will mark the value of the entire TIM Group to market”, believes Krzysztof Folta.