ASBIS Results in H1 2016

Limassol, Cyprus, August 11^th, 2016 - ASBISc Enterprises Plc, a leading distributor of IT products in the emerging markets of Europe, the Middle East and Africa, recorded a very good 2^nd quarter and 1^st half of 2016. The Group posted a significant improvement in its results as compared to the corresponding periods of 2015. In Q2 2016 revenues grew by 1.21% to USD 248.320 million, while in H1 2016 they were 5.64% lower than a year ago at USD 497.414 million. While revenues were relatively stable, gross profit grew by 70.01% in Q2 and 80.53% in H1 2016. This followed a strong improvement in gross profit margins, which almost doubled in both periods, to 5.67% in Q2 2016, compared to 3.37% the year before, and 5.50% in H1 2016, from 2.88% in the 1^st half of 2015.

At the same time, the Company further decreased its selling, administration and financial expenses. The fact that selling and admin expenses decreased by about 25% in H1 2016, while gross profit nearly doubled, is regarded by the management team as a big achievement.

As a result of the increase in gross profit and decline in expenses, profitability grew at all levels. EBITDA was a positive USD 8.352 million in Q2 2016 and USD 7.871 million in H1 2016, as compared to negative values of USD 3.091 million and USD 11.071 million in 2015.

In the 2^nd quarter of 2016 the Company produced a net result more than USD 7 million better year-on-year, with a profit of USD 220k, compared to a loss of USD 6.941 million the year before. For H1 2016, the net result improved by more than USD 20 million, to a profit of USD 621k, compared to a loss of USD 19.344 million in H1 2015. Following publication of the results of H1 2016, the Company maintains its financial forecast for FY 2016.

Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc, commented: “Q2 2016 was in line with our assumptions. We have continued our strategy of focussing mostly on profitability. Consequently, the H1 2016 results are also much improved year-on-year. A very important event of Q2 2016 is that our revenues in the FSU region started to grow again after almost two years of crisis. Should this trend continue, we expect that ASBIS will benefit from investments and sacrifices we made over the last two years to support our operations in the affected countries.

“The USD 20 million improvement in the net result year-on-year is significant, but we are still not satisfied. The efforts to enhance our product portfolio continue, with the ultimate goal to deliver much better results and increase shareholder value, particularly after ending 2015 with a loss”.

FINANCIAL RESULTS IN Q2 2016 AND Q2 2015 (USD ’000) 

FINANCIAL RESULTS IN H1 2016 AND H1 2015 (USD ’000)

DETAILED INFORMATION ON SALES PROFILE

 Revenues derived from the FSU region grew both in Q2 2016 (+7.81%) and in H1 2016 (+0.14%). Sales in the Central and Eastern Europe region in Q2 2016 increased by 0.99% but decreased by 12.62% in H1 2016 as compared to the corresponding periods of 2015.

Sales in Western Europe in Q2 2016 decreased by 25.26% compared to Q2 2015, but in H1 2016 grew by 21.99%. This growth was based on strong component sales in this region. Sales in the MEA region decreased by 2.70% y/y in Q2 2016 and grew by 1.22% y/y in H1 2016.

A country-by-country analysis shows continuous improvement in Ukraine operations, where sales increased by 154.05% in Q1 2016, 266.57% in Q2 2016, and 211.82% in H1 2016, compared to corresponding periods of 2015. Sales in Russia decreased by 6.11% in Q2 2016 and 5.69% in H1 2016, following the decision to drop the weakest product lines. In the CEE region, sales in Slovakia increased by 4.05% in Q2 2016 but decreased by 5.13% in H1 2016. Sales in the Czech Republic grew by 27.11% in Q2 2016 and 18.26% in H1 2016. In absolute numbers, Slovakia continued to be the leader in the Company’s country portfolio, but FSU countries—after the recent improvement—are coming back stronger. Russia already became the Company’s no. 1 market in Q2 2016. The Company expects improvement in the FSU and CEE regions in the next quarters of 2016. 

Revenue from CPUs, which lead the Company’s revenue breakdown by product line, grew by 0.34% in Q2 2016 and 11.19% in H1 2016. Revenue from HDDs increased by 8.94% and decreased by 4.33% over the same periods. Revenue from Software, Laptops and Tablets decreased significantly as the Company focused more on margins and refused some deals. The smartphone segment decreased in H1 2016 by 19.81% because of the low result in Q1 2016, but began to grow again in Q2 2016 (+2.37%) due to improvement in iPhone sales.

For additional information, please contact: 

Daniel Kordel, ASBISc Enterprises PLC, Investor Relations
Tel. +357 99 633 793
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 60 countries worldwide.The Group distributes products of many vendors, and manufactures and sells private-label products: Prestigio (smartphones, tablets, external storage, leather-coated USB accessories, GPS devices, Car-DVRs, MultiBoards etc.) and Canyon (MP3 players, networking products and other peripheral devices). ASBIS has subsidiaries in 23 countries, about 1,100 employees and 27,000 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