ASBIS in Q1 2010: significant increase in revenues, confirm recovery and brighter future
ASBISc Enterprises Plc, a leading distributor of IT products in emerging markets of Europe, Middle East and Africa, posted revenues of USD 331 million for the first quarter of 2010 – 39% higher than in Q1 2009. The company’s gross profit increased by 115% y-o-y to USD 15.4 million, operating profit amounted nearly USD 1.8 million, while net profit exceeded USD 200 thousand. These results represent significant improvement compared to the corresponding period of 2009, indicating strong recovery from the worldwide economic slowdown.
Financial results in Q1 2010 and Q1 2009
| In USD thousands |
Q1 2010 |
Q1 2009 |
Change |
|
Revenues |
330,995 |
237,914 |
+39.12% |
|
Gross profit |
15,443 |
7,179 |
+115.12% |
|
Gross profit margin |
4.67% |
3.0% |
+55.66% |
|
Administrative expenses |
(5,630) |
(5,569) |
+1.09% |
|
Selling expenses |
(7,978) |
(6,118) |
+30.40% |
|
Operating profit |
1,835 |
(4,509) |
n/a |
|
EBITDA |
2,556 |
(3,785) |
n/a |
|
Net profit |
202 |
(6,208) |
n/a |
“Although effects of the world’s financial crisis are still visible on most of our markets, we were able to increase our sales significantly by more than 39% y-o-y. This was mostly because of upgraded product portfolio and better demand on our biggest markets like Russia and Ukraine, that grew by 98% and 71% respectively. Other regions, like strong performing CEE with 22% growth and well performing Middle East with 8.51% growth had their contribution in the growth too. For the third quarter in a row the company was able to deliver profits despite currency losses, with foreign exchange risk, that remain our major riskduring these turbulent times for Europe. We are committed to continue upgrading our hedging policies and I am confident that the future is bright for our group. We have built solid foundations during the crisis times, and now we are benefiting from these actions.” – commented Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc.
The first quarter results confirm the growth trend in sales observed by the Company. Should the recovery signs become more evident in the marketplace during 2010, the Company’s revenues shall be much higher than in 2009. This should be possible because of increased market share in particular markets, upgraded product portfolio and improved operational efficiency.
Summary of growth trend:
- Significant increase in revenues: In Q1 2010 revenues increased by 39.12% to U.S. $ 330,995 from U.S. $ 237,914 in the corresponding period of 2009. This increase reflected easing of the world’s financial crisis, and the Company’s ability to benefit from better demand on its main markets and due to its upgraded product portfolio as well. As a result the Company delivered significantly higher levels of sales than in 2009.
- Improved gross profit and gross profit margin: In Q1 2010 gross profit increased by 115.12% to U.S. $ 15,443 from U.S. $ 7,179 in the corresponding period of 2009. In the same time gross profit margin increased to 4.67% from 3.0% in the corresponding period of 2009.
- Profitability delivered again: Profit before taxation in Q1 2010 amounted to U.S. $ 252 compared to a loss of U.S. $ 6,169 in the corresponding period of 2009. In the same time net profit after taxation in Q1 2010 reached U.S. $ 202 in comparison to net loss of U.S. $ 6,208 in the corresponding period of 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. This changed during crisis times of 2008 and 2009. However, together with easing of the world’s financial crisis and growing demand, big markets like Russia and Ukraine, which suffered the most during the crisis, started to show signs of recovery. This was visible in Q1 2010, when the F.S.U. region with +89,81% growth in sales regained position no 1 in the Company’s structure of revenues. Additionally, in Q1 2010 the Company was able to increase its revenues in all other major regions of its operations. Central and Eastern European countries revenues grew by 21.89%, Western Europe by 22.24% and the Middle East and Africa by 8.51% – confirming good performance shown even during the crisis times.
Revenue structure by regions in Q1 2010 and Q1 2009:
|
|
Q1 2010 |
Q1 2009 |
Change |
||
|
U.S. $ thousands |
% of total revenues |
U.S. $ |
% of total revenues |
% |
|
|
Former Soviet Union |
121,825 |
36,81% |
64,183 |
26,98% |
+89,81% |
|
Central and Eastern Europe |
114,589 |
34,62% |
94,012 |
39,52% |
+21,89% |
|
Middle East and Africa |
51,656 |
15,61% |
47,604 |
20,01% |
+8,51% |
|
Western Europe |
30,255 |
9,14% |
24,751 |
10,40% |
+22,24% |
|
Other |
12,671 |
3,83% |
7,364 |
3,10% |
+72,06% |
|
Total |
330,995 |
100% |
237,914 |
100% |
+39,12% |
Revenue structure by product lines in Q1 2010 and Q1 2009:
|
|
Q1 2010 |
Q1 2009 |
||
|
|
U.S. $ thousands |
% of revenues |
U.S. $ thousands |
% of revenues |
|
Central processing units (CPUs) |
72,763 |
21.98% |
67,689 |
28.45% |
|
Hard disk drives (HDDs) |
47,912 |
14.48% |
35,118 |
14.76% |
|
Software |
18,408 |
5.56% |
12,472 |
5.24% |
|
PC-mobile (laptops) |
68,231 |
20.61% |
40,860 |
17.17% |
|
Other |
123,681 |
37.37% |
81,775 |
34.37% |
|
Total revenue |
330,995 |
100% |
237,914 |
100% |
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
ASBISc Enterprises Plc. is based in Cyprus and specializes in the distribution of computer hardware and software, mobile solutions, blocks and peripherals, and a wide range of IT products and digital equipment. Established in 1995, 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 (LCD monitors, laptops, 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 30,000 customers. The Company’s stock has been listed on the Warsaw Stock Exchange since October 2007 under the ticker symbol “ASB” (ASBIS).