ASBIS ACHIEVED INCREASED REVENUES IN A VERY DEMANDING MARKET ENVIRONMENT IN THE FIRST HALF OF 2023; THE GROUP IS FURTHER DYNAMICALY DEVELOPING ITS OPERATIONS

ASBISc Enterprises Plc (WSE: ASB), a leading Value Add Distributor, developer, and provider of ICT, IoT products, Robotic solutions, and services to the markets of Europe, the Middle East, and Africa (EMEA), despite the extremely difficult market environment, generated excellent financial results in the first half. Revenues in the first half of 2023 amounted to nearly USD 1.4 billion (close to PLN 6 billion),15% higher than those generated in the same period of last year (USD 1.2 billion). The Group's net profit amounted to USD 28.6 million (PLN 122.3 million), as compared to USD 27.1 million in the first half of 2022 (an increase of 6%). In Q2 2023, ASBIS generated USD 674.1 million (PLN 2.8 billion) in revenues and USD 11.2 million in net profit (PLN 47 million).

The Company's results are in line with the expectations and published financial forecast for 2023. After the first half of the year, the level of realization in revenues is at 44% and 35% at the level of net profit. The Group expects sales revenues in 2023 to be between USD 3.0 billion and USD 3.2 billion, while net profit after tax between USD 78 million and USD 82 million. This means that 2023 may be a record year in the Group's history, especially at the profit level. Historically, the best sales period in the IT sector is the fourth quarter of the calendar year. 

OTHER IMPORTANT EVENTS:

• The largest ASBIS country in terms of sales was the very fast growing Kazakhstan, while the FSU region still maintained the largest share in the Group's revenues (more than 52% in the 1H 2023).
• Poland has become a permanent member among the 10 countries with the highest revenues in the Group, taking the 8^th place with revenues of USD 53.5 million in 1H2023 (an increase of 34,5% compared to the same period of last year).
• ASBIS paid a final dividend from the Company's 2022 profits of USD 0.25 per share. Including the interim dividend paid out last December, the total dividend totals USD 0.45 per share – the highest dividend in the Company's history.
• ASBIS registered six new subsidiaries: in Armenia, Georgia, Azerbaijan, Morocco, Moldova and South Africa.
• ASBIS opened the first iSpace store in the capital of Moldova - Chisinau. Currently, ASBIS runs 29 iSpace stores.
  
  
  “After the most profitable first quarter in the Company’s history, we ended the second quarter of 2023 very strongly, generating high, double-digit sales growth from month to month,” said Serhei Kostevitch, CEO of ASBIS Group. “Thanks to the consistent implementation of our strategy and the great determination of our teams, we managed to achieve a strong increase in revenues, despite the fact that historically the second quarter is the weakest quarter of a calendar year in the IT industry.”

 

Serhei Kostevitch, added: “In the second quarter of 2023, we continued our strategy of investing in promising markets, such as the countries of Central Asia, the Caucasus and Africa, but also in Western Europe, building strong teams thanks to which we can dynamically increase our sales. We also continued to strengthen and develop our portfolio of IT products and services with technologically advanced solutions, including the robotics division - ASBIS Robotic Solutions (AROS)”. 

FINANCIAL RESULTS 

A summary of the financial results of the ASBIS Group in the first half of 2023 is presented in the tables below (presentation of the results in USD and in the table below in PLN). USD remains the official reporting currency of the Group.



DETAILED SALES DATA

SALES BY REGION

The regions of the FSU and Central and Eastern Europe traditionally account for the largest share of Group’s revenues. This has not changed in Q2 2023 and H1 2023.

In Q2 2023 and H1 2023, sales in the FSU region have significantly increased  year-on-year by 37.8% and 17.9% respectively. We have also observed the same positive trend in the Central and Eastern Europe region (20.1% growth in Q2 2023 and 7.7% in H1 2023 on a year-on-year basis).

As a result of the above facts, the share of some regions, revenues of the Central and Eastern Europe region in the Company's total revenues for the second quarter of 2023 and the first half of 2023 have changed as compared to the corresponding periods of 2022. The share of Central and Eastern Europe region has decreased in both Q2 2023 and H1 2023 at the expense of the growth of the FSU and Western Europe regions. The share of the FSU region has increased in Q2 2023 to 48.02% (from 45.50% in Q2 2022) and to 52.23% in H1 2023 (from 51.09% in H1 2022) 2022).

The share of the Middle East and Africa region has decreased both in Q2 2023 and H1 2023 to 15.22% (from 16.92% in Q2 2022) and 13.93% (from 14.71 % in H1 2022).

SALES BY COUNTRY

Country-by-country analysis shows continued strong growth in Kazakhstan, the Group's largest market, with sales up 31.7% in Q2 2023 and 36.1% in H1 2023 as compared to the same periods in 2022. Ukraine, the second largest operating market that is directly affected by the war, thanks to the amazing efforts of the Group significantly increased revenues by 126.5% in Q2 2023 and 62.7% in H1 2023 as compared to the corresponding periods of 2022.

United Arab Emirates – the Group's third largest market, recorded revenues of USD 143.3 million in H1 2023, up 6.6% year-on-year.

Poland recorded amazing growth in both Q2 2023 (+64.2%) and H1 2023 (+34.5%) as compared to the corresponding periods of 2022. The best-selling product categories in Poland were processors, graphic cards and accessories.

In 2Q 2023, the countries with the highest sales increases were as follows:

• Ukraine - increase by 126.5%
• Germany - increase by 104.0%
• Romania - increase by 76.7%
• Poland - increase by 64.2%
• Georgia - increase by 56.8%

For additional information, please contact:  

Iwona Mojsiuszko
8Sense Public Relations
Tel. +48 502 344 992
E-mail iwona.mojsiuszko@8sensepr.pl

^{About ASBISc Enterprises Plc} 

^{ASBIS Group is a leading Value Add Distributor, developer and provider of ICT, IoT products, solutions, and services to the markets of Europe, the Middle East, and Africa (EMEA) with local operations in Central and Eastern Europe, the Baltic republics, the former Soviet Union, the Middle East and North Africa.} 

<sup>The business of ASBIS is based on three pillars:
1. Distribution of hardware and software for Client Computing and Data Centers, consumer electronics thru:
    a.   Retail chains and e-tailers
    b.   Resellers to small and medium business
    c.   Large enterprises.
2. Full stack in creation of world class products. From scientific research and development to design and engineering, firmware and software, production and marketing of IT and IoT products and solutions via own brands:
    a.      Aeno (small home appliances).
    b.     Canyon (smart watches, power banks, accessories for computers and mobile devices)
    c.     Cron Robotics (building own solutions in the robotics segment, including cobots).
    d.     Lorgar (accessories for gaming and streaming)
    e.     Perenio (IoT platform, IoT routers, applications and peripherals for smart office/ home, smart health).
    f.     Prestigio (smart devices and accessories, innovative solutions for business and education, etc.)
    d.     Prestigio Solutions (innovative technological solutions for business and education)
3.     Complex solutions sales projects to large enterprises via extensive networks of System Integrators and Value Add Resellers.</sup> 

^{ASBIS was founded in 1990 in Belarus, since 1995 operates from Cyprus. Company has 2 main distribution centers in the world located in the Czech Republic and the United Arab Emirates and 2 regional distribution centers (Georgia, South Africa), subsidiaries in 28 countries, more than 2,200 employees and about, 20 000 active customers in 60 countries worldwide. In 2022, the Group delivered sales of close to USD 2.7 billion.}

^{The Company’s stock has been listed on the Warsaw Stock Exchange since October 2007 under the ticker symbol “ASB” (ASBIS).} 

^{For more news and information visit: www.asbis.com}