The best results in more than 5 years
This is the in brief a description of the results of TIM SA and the entire TIM Capital Group after the first half of 2016. The largest distributor of electronics in Poland has achieved the turnover higher by 1/5 than a year before (PLN 287.2 million vs 239.3 million) and almost PLN 5.4 million net profit.
Revenues from sales of the TIM Capital Group amounted to almost PLN 310 million. The number of TIM’s customers is growing. And all this despite the decline in the construction sector which TIM used to quite recently be largely dependent on.
The results of the construction and installation production in the first half of 2016 reflect a clear slowdown in investments whose first symptoms were already evident in the last months of 2015. In June 2016 a drop by 13% was observed as compared to June last year, whereas in the entire first half of 2016 the construction and installation production was lower by 11.9 % as compared to the same period of 2015.
Independence of the economic situation in the construction sector
– Meanwhile, the trade policy of TIM SA and of the entire TIM Capital Group, based on the sale to the trade and services sector and therefore on small and medium sized entrepreneurs, online buyers, brings very good results – says Krzysztof Folta, the President of the Management Board of TIM SA. – This is our way to become independent of the economic situation in the construction sector and to sustain the continued growth in revenues and profits. Which is best proven by the results achieved in the first half of this year – he adds.
In this context it is worth noting the EBITDA profit. In case of the TIM Capital Group after the first half of 2016 it amounted to nearly PLN 10.4 million, i.e. over PLN 7.6 million more than last year. Such a significant improvement was possible due to the increase in the margin with optimal costs.
The success of the new, hybrid business model, combining TIM’s 25 years of experience gained in the traditional B2B trade with the opportunities offered by e-commerce, is confirmed by the dynamically growing number of customers. In the first half of 2013, and so just before the launch of the TIM.pl e-store, over 11 600 customers benefitted from the TIM’s offer. In the first half of 2016 – by as much as 52% more, i.e. 17 652.
TIM a partner and not a competitor
When three years ago TIM SA changed its business model, installers accounted for the largest group of customers in terms of the generated revenue from sales (35.6%). The second position was held by resellers with the share of almost 19%. Today it is them who account for the largest group of customers of TIM SA (over 46.2% of revenue from sales in the first half of 2016).
– Two years after the closure of the last branch office with a local warehouse and transforming it into a commercial office, resellers do not perceive TIM as competition. TIM is their partner who offers them access to the widest product range on the market at attractive prices. We are the only distributor of electrical goods in Poland so openly communicating its offer to the market – says Krzysztof Folta.« back to 'News'
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