Delticom (DEX) Q2 2025 earnings summary

Executive summary

• Revenues grew 11.6% year-over-year to €236.5 million in H1 2025, outperforming the overall market trend, with gross merchandise volume up 10.4% to €285.4 million.

• Gross profit increased by 5.2% to €69.9 million, despite a decrease in gross margin due to sales mix changes.

• EBITDA declined 32.3% to €5.3 million, impacted by a negative currency result of €-1.5 million.

• EBIT turned negative at €-0.6 million, mainly due to unscheduled depreciation of €1.2 million on current assets and currency losses.

• Net income dropped to €-1.7 million, down from €0.1 million in H1 2024, with EPS at €-0.12, reflecting profitability pressures.

Financial highlights

• Gross margin decreased by 2.1 percentage points to 24.3%, mainly due to a change in sales mix.

• Operating cash flow improved to €-4.6 million from €-21.5 million in H1 2024, mainly due to better working capital management.

• Personnel expenses fell 19.6% due to warehouse closure, automation, and AI adoption, with the personnel expense ratio improving to 2.4% from 3.3%.

• Other operating expenses increased 14.2% year-over-year.

• Equity ratio remained stable at 20.5%, with equity at €50.0 million.

Outlook and guidance

• FY 2025 revenues are projected at €470–490 million, with operative EBITDA guidance at €19–21 million.

• Management expects free cash flow for the year to be in the low single-digit million range and positive in the medium term.

• Winter tyre business in H2 2025 will be crucial for annual performance.

• Management will focus on profitability and may compensate for currency losses in H2.

• Potential supply bottlenecks for Chinese tyres in winter if EU anti-dumping measures are enacted.