ASBIS in Q3 2012: Four-fold Growth in Net Profit Thanks to Higher Revenues, Effective Hedging and Strict Cost Controls
Year-to-date, through three quarters, revenues grew by 16.46%, to USD 1.178 billion, and EBITDA was USD 13.8 million, 89.9% higher than in the same period of 2011. Net profit through 9 months was USD 4.6 million, compared to a loss of USD 2.6 million during the same period of 2011. Thanks to effective currency hedging and strict cost controls, ASBISc Enterprises also improved its margins at all levels.
Thus the company believes it is on track to deliver the forecast results for Y2012: USD 1.55 billion to 1.65 billion in revenues and USD 7.5 million to 9.5 million in net profit after tax.
Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc, commented: “We consider the Q3 2012 results satisfactory, considering that they were achieved in tough market conditions. Despite the fact that customers are pushing for lower margins due to recent economic turbulence in Europe, we have managed to increase our sales by 20.62% and reinforce our market share at the expense of weaker competitors. This was possible due in part to improvement in our product portfolio and a focus on the large and growing PC-mobile segment and on our own brands, which accounted for 9.37% of total revenue for Q3 2012, an increase from 6.75% in Q2 2012.”
Kostevitch added: “In Q3 2012, besides top–line growth, we successfully managed currency risk, avoiding any major losses despite the volatility observed in the market. We have also continued improving our internal efficiencies. Our admin expenses decreased by 7.57% and selling expenses grew by only 8.09% – significantly slower than the growth in revenues and in gross profit. As a result we have been able to increase net profit after tax four-fold, to USD 2.03 million in Q3 2012, compared to USD 0.5 million in Q3 2011. For the nine months our NPAT was USD 4.6 million, compared to a loss of USD 2.6 million in the same period last year. In short, we not only improved our profitability compared to last year, but also on the top line we are growing faster than we had forecast. This allows us to feel comfortable about achieving our forecast, especially since we are entering the most profitable period of the year for the whole industry in good shape.”
FINANCIAL RESULTS IN Q3 2012 AND Q3 2011 (in USD thousand)
|
|
Q3 2012 |
Q3 2011 |
Change |
|
Revenues |
433,543 |
359,419 |
+20.62% |
|
Gross profit after currency movements |
20,409 |
17,611 |
+14.86% |
|
Gross profit margin |
4.70% |
4.93% |
-4.77% |
|
Administrative expenses |
5,700 |
6,167 |
-7.57% |
|
Selling expenses |
9,602 |
8,883 |
+8.09% |
|
Operating profit |
5,059 |
2,676 |
+89.03% |
|
EBITDA |
5,792 |
3,410 |
+69.85% |
|
Net profit |
2,030 |
511 |
+296.91% |
FINANCIAL RESULTS IN Q1-Q3 2012 AND Q1-Q3 2011 (in USD thousand)
|
|
Q1-Q3 2012 |
Q1-Q3 2011 |
Change |
|
Revenues |
1,178,481 |
1,011,918 |
+16.46% |
|
Gross profit after currency movements |
56,573 |
51,821 |
+9.17% |
|
Gross profit margin |
4.80% |
5.12% |
-6.26% |
|
Administrative expenses |
17,195 |
18,888 |
-8.96% |
|
Selling expenses |
27,595 |
27,920 |
-1.17% |
|
Operating profit |
11,783 |
5,013 |
+135.04% |
|
EBITDA |
13,827 |
7,283 |
+89.85% |
|
Net profit |
4,605 |
(2,615) |
N/A |
FINANCIAL FORECAST FOR 2012
For 2012 ASBIS has forecast revenues between USD 1.55 billion and 1.65 billion and NPAT from USD 7.5 million to 9.5 million.
DETAILED INFORMATION ON SALES PROFILE
Traditionally in the company’s operations, the FSU and CEE regions contribute the largest share of revenues. This was also the case in Q3 2012, although the company grew significantly in all other major regions of operations. Revenues derived from the FSU region grew by 18.45% in Q3 2012 and 16.48% in the first nine months of 2012 compared to the corresponding periods of 2011. As a result, the contribution of this region to total revenues grew to 41.64% in Q3 2012 and 40.78% for the first nine months of 2012. Revenues derived in the CEE region grew by 28.29% in Q3 2012 and 17.67% for the first nine months of 2012 compared to the corresponding periods of 2011. In both Q3 2012 and in the first nine months of 2012 the company also recorded significant growth in the Middle East and Africa (+2.17% and 15.41% respectively) and in Western Europe (+31.88% and 12.96% respectively). Strong growth in all these regions allowed the company to produce major growth in revenues in Q3 2012, at +20.62%, which resulted in 16.46% growth for the first nine months of 2012. This positive trend is expected to continue, since Q4 is traditionally the strongest period of the year, assuming no major negative changes in the overall market situation.
“Our strategy is to focus on our main markets, constantly refine our product portfolio and generate sales with good margins,”commented Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc. “Our results prove that this model works even during tough times of economic turbulence in Europe. Revenues derived in our two biggest markets – Russia and Ukraine – grew significantly in Q3 2012 compared to Q3 2011, and remained stable in Slovakia. At the same time we also grew in some other countries on our top 10 list, like the United Arab Emirates (+17.75%) and Kazakhstan (+2.80%).”
REVENUE BREAKDOWN BY REGIONS IN Q3 2012 AND Q3 2011 (in USD thousand):
| Region |
Q3 2012 |
Q3 2011 |
Change % |
|
Former Soviet Union |
180,546 |
152,428 |
+18.45% |
|
Central and Eastern Europe |
152,510 |
118,880 |
+28.29% |
|
Middle East and Africa |
56,467 |
55,267 |
+2.17% |
|
Western Europe |
28,481 |
21,597 |
+31.88% |
|
Other |
15,539 |
11,247 |
+38.15% |
|
Total |
433,543 |
359,419 |
+20.62% |
REVENUE BREAKDOWN IN Q3 2012 AND Q3 2011 – TOP 10 COUNTRIES (in USD thousand)
|
|
Q3 2012 |
Q3 2011 |
||
|
|
Country |
Sales |
Country |
Sales |
|
1. |
Russia |
94,747 |
Russia |
86,765 |
|
2. |
Ukraine |
47,975 |
Ukraine |
38,382 |
|
3. |
Slovakia |
36,219 |
Slovakia |
36,256 |
|
4. |
Bulgaria |
32,517 |
United Arab Emirates |
26,808 |
|
5. |
United Arab Emirates |
31,566 |
Czech Republic |
19,719 |
|
6. |
Czech Republic |
17,832 |
Kazakhstan |
17,001 |
|
7. |
Kazakhstan |
17,476 |
Saudi Arabia |
11,931 |
|
8. |
Belarus |
16,971 |
Romania |
9,250 |
|
9. |
Lithuania |
13,544 |
Bulgaria |
8,536 |
|
10. |
Hungary |
12,033 |
Croatia |
8,153 |
|
11. |
Other |
112,664 |
Other |
96,619 |
|
|
TOTAL |
433,543 |
TOTAL |
359,419 |
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
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 also manufactures and sells private-label products: Prestigio (tablets, e-books, smartphones, 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 1,300 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 the company's website at www.asbis.com or investor.asbis.com