ASBIS Group in Q1 2013: Investment in own brands paying off with strong growth of revenues and profitability

ASBIS Group in Q1 2013: Investment in own brands paying off with strong growth of revenues and profitability

The main driver of Company's growth was the strong development of own brand sales together with robust results on all product lines the group has focused on

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%



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.


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.



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%



  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

Costas Tziamalis
, ASBISc Enterprises PLC, Investor Relations
Tel. +357 25 857 000


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 or  

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