ASBIS Group in Q1 2013: Investment in own brands paying off with strong growth of revenues and profitability
Limassol, Cyprus, May 9th, 2013 – ASBISc Enterprises Plc, a leading distributor of IT products in emerging markets of Europe, the Middle East and Africa, reported a successful Q1 2013. During the period the company increased its sales revenues by 17.05% to USD 443,824,000. At the same time, ASBIS significantly lifted its profitability on all levels. Gross profit grew by 31.15% to USD 26,196,000, from USD 19,974,000 in Q1 2012, and EBITDA grew by 54.23% to USD 8,150,000 in Q1 2013, from USD 5,284,000 in Q1 2012. As a result, NPAT grew by 48.15% to USD 3,344,000, from USD 2,257,000 in Q1 2012. The main driver of this growth was the strong development of own brand sales together with robust results on all product lines the group has focused on.
Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc, commented: “We consider this a successful quarter because we were in a position to deliver the profitability we expected. We are glad to see that the group has outperformed the market in this turbulent economic environment. This was possible due to the successful and consistent implementation of our strategy focusing more on increased profitability than on revenues. In Q1 2013, we significantly increased sales of our own brands, something we are proud of, as their contribution to total sales grew to more than 17%, from 9% in 2012. Adding to the above, revenues from third-party tablet and smartphone sales have also increased.”
Siarhei Kostevitch continued: “As a result of these efforts, our operating profit grew by 62%, while net profit after tax grew by 48% in Q1 2013 compared to Q1 2012. Having seen the results of Q1 2013, when we already earned about 30% of the net profit after tax forecast for Y2013, the management team remains confident of delivering robust results and maximizing shareholder value. Improvement in margins, profitability and cash-flow will be our main focus in 2013.”
FINANCIAL RESULTS IN Q1 2013 AND Q1 2012 (USD ’000)
| Q1 2013 | Q1 2012 | Change | |
| Revenues | 443,824 | 379,183 | +17.05% |
| Gross profit | 26,196 | 19,974 | +31.15% |
| Gross profit margin | 5.90% | 5.27% | +12.05% |
| Administrative expenses | (6,885) | (5,964) | +15.44% |
| Selling expenses | (11,835) | (9,403) | +25.86% |
| Operating profit | 7,477 | 4,608 | +62.27% |
| EBITDA | 8,150 | 5,284 | +54.23% |
| Net profit | 3,344 | 2,257 | +48.15% |
FINANCIAL FORECAST FOR 2013
For 2013, ASBIS forecasts revenues between USD 1.85 billion and USD 1.95 billion and NPAT from USD 11.0 million to USD 12.5 million.
DETAILED INFORMATION ON SALES PROFILE
Revenues derived from FSU countries grew by 3.07% in Q1 2013. However, at the same time ASBIS grew much faster in the CEE region (+38.06%). As a result, the CEE region has now become the no. 1 region in revenues, and its contribution to total sales grew to 38.09% in Q1 2013, from 32.29% in Q1 2012, while the FSU region’s contribution decreased to 36.08% in Q1 2013, compared to 40.97%.
Siarhei Kostevitch commented: “These developments were the result of our strategy to focus on profitability and improve the geographical spread of our revenues. We have increased sales from own brands, tablets and smartphones, which were especially successful in CEE. At the same time, we have ceased distribution of some low-margin lines. Our attempt is to optimize our available net working capital and ensure that the margin structure of our company is now comprised of products carrying a higher gross margin. The management team is convinced that maintaining a focus on more profitable lines will bring the financial profits to our company.”
REVENUE BREAKDOWN BY REGIONS IN Q1 2013 AND Q1 2012 (USD ’000):
| Region | Q1 2013 | Q1 2012 | Change % |
| Central and Eastern Europe and Baltic States | 169,054 | 122,453 | +38.06% |
| Former Soviet Union | 160,143 | 155,368 | +3.07% |
| Middle East and Africa | 65,506 | 60,209 | +8.80% |
| Western Europe | 42,456 | 30,743 | +38.10% |
| Other | 6,665 | 10,411 | -35.98% |
| Total | 443,824 | 379,183 | +17.05% |
REVENUE BREAKDOWN IN Q1 2013 AND Q1 2012 – TOP 10 COUNTRIES (USD ’000)
| Q1 2013 | Q1 2012 | |||
| Country | Sales | Country | Sales | |
| 1. | Russia | 88,766 | Russia | 91,357 |
| 2. | Slovakia | 38,097 | Ukraine | 37,108 |
| 3. | Bulgaria | 37,316 | United Arab Emirates | 33,666 |
| 4. | United Arab Emirates | 36,447 | Slovakia | 33,391 |
| 5. | Ukraine | 34,062 | Czech Republic | 19,823 |
| 6. | Czech Republic | 19,096 | Kazakhstan | 15,522 |
| 7. | Kazakhstan | 17,147 | Bulgaria | 10,678 |
| 8. | Belarus | 17,110 | The Netherlands | 10,022 |
| 9. | Lithuania | 16,863 | Romania | 8,290 |
| 10. | Saudi Arabia | 15,991 | Poland | 8,237 |
| 11. | Other | 122,931 | Other | 111,089 |
| TOTAL | 443,824 | TOTAL | 379,183 | |
For additional information, please contact:
Daniel Kordel, ASBISc Enterprises PLC, Investor Relations
Tel. +357 99 633 793
Tel. +48 509 020 021 E-mail d.kordel@asbis.com
Costas Tziamalis, ASBISc Enterprises PLC, Investor Relations
Tel. +357 25 857 000
E-mail costas@asbis.com
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, also visit the company’s website at www.asbis.com or investor.asbis.com