ASBIS in Q3 2010: Strong Increase in Revenues and Profits Heralds Bright Future
Press-release
Revenues grew by 23.67% y-o-y, net profit exceeded u.s.$ 1.3 million
Limassol, 9 th November 2010 — ASBISc Enterprises Plc, a leading distributor of IT products in emerging markets of Europe, Middle East and Africa, posted revenues of USD 357 million for the third quarter of 2010, 23.67% higher than in Q3 2009. In the same time gross profit grew by 19.69% to USD 17.27 million compared to USD 14.42 million in Q3 2009. Strong growth in revenues and gross profit resulted in almost double operating profit that amounted to U.S.$ 4.12 million compared to U.S.$ 2.09 million in Q3 2009. Finally net profit reached U.S.$ 1.31 million – 17.78% higher compared to U.S.$ 1.11 million in Q3 2009. These results represent ASBISC's stronger market position, driven by growing demand and the Company's upgraded product portfolio on its main markets.
“Our sales grew significantly compared to both Q3 2009 and Q2 2010. This presents in the best way the market trend and our situation. Not only we won some additional share of the market from weaker competition during crisis times but now we can benefit from growing demand as well. We have upgraded our product portfolio to offer more laptops, software and own brands, together with our strong position in the traditional components segment. This quarter we had foreign exchange gains and together with good operational efficiencies we have generated a net profit by 18% higher than the corresponding period of 2009. We expect the good trend in sales to continue during the next quarter allowing us to be optimistic for the yearly end results. In the absence of extraordinary negative factors, we should post even higher revenues and profits for Q4, and close 2010 with revenues higher than in 2009 and with significant net profits.” – commented Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc.
Financial results in Q3 2010
|
In USD thousands |
Q3 2010 |
Q3 2009 |
Change |
|
Revenues |
357,437 |
289,024 |
+23.67% |
|
Gross profit before currency movements |
15,271 |
14,139 |
+8.01% |
|
Currency movements on gross profit |
1,989 |
282 |
+605.32% |
|
Gross profit after currency movements |
17,259 |
14,421 |
+19.69% |
|
Gross profit margin before currency movements |
4.27% |
4.89% |
-12.68% |
|
Gross profit margin after currency movements |
4.83% |
4.99% |
-3.21% |
|
Administrative expenses |
5,778 |
5,340 |
+8.21% |
|
Selling expenses |
7,365 |
6,989 |
+5.38% |
|
Operating profit |
4,116 |
2,092 |
+96.75% |
|
EBITDA |
4,862 |
2,800 |
+73.65% |
|
Net profit |
1,309 |
1,111 |
+17.78% |
Summary of growth trend:
- Significant growth in revenues: +28% year-on-year growth in sales, mostly due to increased market position and upgraded product portfolio.
- Improved gross profit both before and after currency movements: Gross profit before currency movements in Q3 2010 increased by +8.01% to U.S.$ 15,271 from U.S.$ 14,139 in the corresponding period of 2009.
- Gross profit after currency movements grew even stronger , by +19.69% to U.S.$ 17,259 from U.S.$ 14,421 in the corresponding period of 2009.
- Strong growth in operating profit: Good operational efficiency and upgraded product portfolio allowed to almost double operating profit from U.S.$ 2.092 in Q3 2009 to U.S.$ 4.116 in Q3 2010.
- +17.78% growth in net profit generated in Q3 2010 . Net profit amounted to U.S.$ 1,309 compared to U.S.$ 1,111 in Q3 2009 .
Detailed information on sales profile
Traditionally and throughout the last years of the Company's operation, the region contributing the majority of revenues has been the Former Soviet Union. After temporary changes in 2009, when Central and Eastern Europe region was less affected by the world's financial crisis, in 2010 with the recovery of big markets like Russia and Ukraine, F.S.U. regained position number 1 in the Company's structure of revenues. This continued in Q3 2010 when revenues delivered in F.S.U. countries grew by +68.78% compared to the corresponding period of 2009.
“During Q3 2010 we have experienced strong growth in FSU countries as it was expected. We also saw growth in sales in other regions, i.e. the Middle East and Africa grew by almost 21% and Western Europe by 11 %. Market trend is good and the solid foundation of our company ensures good prospects and continuation of the growing business. PC penetration in our markets is still well below that of the developed markets of W estern E urope and U nited States and this leaving us with a lot of space for further growth .” – commented Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc.
Also country-by-country analysis confirms signs of recovery in ASBIS biggest markets. Sales in Russia grew by 85.41% and in Ukraine 30.07%. All of this was possible because of a much enhanced product portfolio which was built during the very tough crisis times.
Revenue breakdown by regions in Q3 2010 and Q3 2009 (in usd thousands):
|
Region |
Q3 2010 |
Q3 2009 |
|
|
2010 Q3/Q2 change % |
|
Former Soviet Union |
152,948 |
90,619 |
+68.78% |
99,272 |
+54.07% |
|
Central and Eastern Europe and Baltic States |
112,672 |
118,043 |
-4.55% |
88,002 |
+28.03% |
|
Middle East and Africa |
52,098 |
43,177 |
+20.66% |
43,998 |
+18.41% |
|
Western Europe |
27,290 |
24,574 |
+11.05% |
25,401 |
+7.44% |
|
Other |
12,429 |
12,610 |
-1.44% |
12,888 |
-3.56% |
|
Grand Total |
357,437 |
289,024 |
+23.67% |
269,562 |
+32.60% |
Revenue breakdown in Q3 2010 and Q3 2009 – top 10 countries (in USD thousands)
|
|
Q3 2010 |
Q3 2009 |
||
|
|
Country |
Sales |
Country |
Sales |
|
1. |
Russia |
87,067 |
Russia |
46,958 |
|
2. |
Ukraine |
40,003 |
Slovakia |
42,747 |
|
3. |
Slovakia |
37,136 |
Ukraine |
30,756 |
|
4. |
United Arab Emirates |
19,257 |
United Arab Emirates |
17,481 |
|
5. |
Czech Republic |
18,508 |
Czech Republic |
15,276 |
|
6. |
Belarus |
15,344 |
Poland |
10,838 |
|
7. |
Saudi Arabia |
12,165 |
Belarus |
9,276 |
|
8. |
Poland |
9,634 |
The Netherlands |
7,921 |
|
9. |
Kazakhstan |
9,336 |
Romania |
7,909 |
|
10. |
The Netherlands |
8,002 |
Turkey |
7,829 |
|
11. |
Other |
101,086 |
Other |
92,033 |
|
|
Grand total |
357,437 |
Grand total |
289,024 |
For additional information, please contact:
Mr Daniel Kordel , ASBISc Enterprises PLC, Investor Relations
Tel. +00 357 99 633 793
Tel. +48 509 020 021
E-mail: d.kordel@asbis.com
Mr Costas Tziamalis , ASBISc Enterprises PLC, Investor Relations
Tel. +00 357 25 857 000
E-mail costas@asbis.com
Mrs. Iwona Mojsiuszko , M+G
Tel. +48 22 625 71 40,
Tel. +48 501 183 386
E-mail: iwona.mojsiuszko@mplusg.com.pl
ASBISc Enterprises Plc is based in Cyprus and specializes in the distribution of computer hardware and software, mobile solutions, IT components and peripherals, and a wide range of IT products and digital equipment. Established in 1990, the Company has a presence in Central and Eastern Europe, the Baltic States, the former Soviet Union, the Middle East, and North Africa, selling to 75 countries worldwide.
The Group distributes products of many vendors and manufactures and sells private-label products: Prestigio (external storage, leather-coated USB accessories, GPS devices, etc.) and Canyon (MP3 players, networking products and other peripheral devices).
ASBIS has subsidiaries in 26 countries, more than 1,000 employees and 32,000 customers.
The Company's stock has been listed on the Warsaw Stock Exchange since October 2007 under the ticker symbol “ASB” (ASBIS).
For more information, visit also the company's website at www.asbis.com or investor.asbis.com