ASBIS ACHIEVES A VERY PROFITABLE Q1 2022

THE GROUP IS INTENDING TO FOCUS ON FURTHER DEVELOPMENT AND  ACHIEVEMENT  OF HIGHER PROFITABILITY 

ASBISc Enterprises Plc, a leading Value-Added Distributor, developer and supplier of IT and IoT products, solutions and services in the growing markets of Europe, Middle East and Africa, despite the extremely difficult market environment, generated excellent financial results in the first quarter of 2022. Sales revenues in the first quarter of 2022 amounted to USD 694.6 million,  only 5% lower than in the corresponding period of last year (USD 733.4 million). Despite the decline in revenues, the Company increased its profitability in the reported period, generating a net profit of USD 16 million, i.e., 6% higher than in Q1 2021 (USD 15.3 million). The Group also significantly improved its gross profit margin to 7.61%, from 6.43% in Q1 2021. 

OTHER IMPORTANT EVENTS IN Q1 2022:

• The largest ASBIS country in terms of sales was Kazakhstan, while the FSU countries still maintained the largest share in the Group's revenues (over 55%).
• Poland has become a permanent member among the 10 countries with the highest revenues in the Group, taking the 8th place with revenues of nearly USD 23 million (an increase of 2% compared to the same period of last year).
• On May 4^th, 2022, the Annual General Meeting of the Company decided to pay a final dividend from 2021 profits  of USD 0.10 per share, i.e., USD 5.55 million. The dividend date was set for May 16^th, 2022, and the dividend payment date for May 26^th, 2022. Thus, the total dividend from the 2021 profits, along with the interim dividend paid on December 2^nd, 2021, will reach USD 0.30 per share, ie.,  a total payout of USD 16.65 million.
• ASBIS has signed a contract for the lease of nearly 10,000 m2 of warehouse space for a new distribution center in Prague (Czech Republic). Thus, the capacity of the ASBIS Group distribution center in Prague, which supplies the entire region of Central and Eastern Europe, will be doubled.
• ASBIS has opened a new Apple iPoint store in the Shum Shopping Center in the city of Aktau, Kazakhstan. It is the seventh Apple store opened by ASBIS in Kazakhstan.
• ASBIS continues expanding its operations  signed a distribution agreement with Loewe, a leading international premium TV and entertainment electronics brand. Also extended the distribution agreement with Vertiv to Algeria and Tunisia (Africa).
• ASBIS has allocated USD 2 million to assist Ukraine, as part of a specially created and launched humanitarian fund called #HelpUkraine Fund.

 “The first quarter has been quite difficult for ASBIS and also for Europe and the whole world,” said Serhei Kostevitch, CEO of ASBIS Group. “Due to the Russian invasion in Ukraine and the war that has been going on since the end of February, the economic situation of many people and corporates has been adversely affected. Therefore, we have primarily focused on the safety of our employees, security of our warehouses and goods, and reorganization of our business and setting new priorities. We have quickly recovered some of the lost revenues from the countries affected by the war. Considering the current situation in Ukraine, we are very pleased with the Group's achievements in the first quarter of 2022 and very proud of the spirit of solidarity and unity of ASBIS Group employees in these difficult times. The results of the first quarter of 2022 prove, as we have repeatedly emphasized, that ASBIS is well prepared to defend its position in difficult situations thanks to its strong market position, flexibility in operations, over 30 years of presence in the IT market and strong relationships with its suppliers. In our opinion, we successfully completed the first quarter of 2022, the best in the history of the Group in terms of net profitability.” 

IN SOLIDARITY WITH UKRAINE 

In the first quarter of 2022, ASBIS, as a socially responsible company operating in Ukraine among other countries, launched a special humanitarian fund called #HelpUkraine Fund and allocated EUR 2 million to aid Ukraine. Under this fund, ASBIS provides humanitarian aid to the most needy cities, hospitals and centers in Ukraine. To date, the Group has delivered 10 fully equipped ambulances, ready for immediate aid and over 27,000 medical and first aid kits, technological products such as generators and power banks, and many other essentials, including blankets, sleeping bags, food and other items.

FINANCIAL RESULTS 

The summary of the financial results of the ASBIS Group in Q1 2022 is presented in the table below:

 DETAILED SALES DATA

SALES BY REGION

The FSU and CEE regions traditionally account for the largest share of our revenues. This has not changed in Q1 2022, however, due to the ongoing war in Ukraine, revenues in the FSU region decreased by 2.4%, while sales in the CEE region decreased by 1.3%. The war, which also affected the neighbouring countries of Ukraine, significantly reduced the demand among customers.

SALES BY COUNTRY

Country-by-country analysis confirms that a significant drop in sales was recorded in the markets directly affected by the war in Ukraine. The decline in Ukraine was one of the highest. As a result, revenues in Ukraine decreased by 21.7% compared to the 1st quarter of 2021. The revenues achieved on Russia (the Group's largest market so far) has decreased by 24.6% in the 1st quarter of 2022 compared to the corresponding period of 2021.

On the other hand, the Company was able to significantly increase sales in markets that were not directly affected by the war in Ukraine, such as Kazakhstan, which is currently the Group's largest market. 

The countries with the highest sales growth in Q1 2022 were:

• Georgia - increased by 52.0%
• Kazakhstan - increased by 42.1%
• Azerbaijan - increased by 28.0%
• Slovakia - increased by 15.7%. 

 

Poland recorded an increase in revenues in Q1 2022 of 2%, compared to Q1 2021.

Russia and Belarus are still in the top 10 positions as sales in these markets were very high before the outbreak of the war.

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 IT, 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.     Perenio (IoT platform, IoT routers, applications and peripherals for smart office/ home, smart health).
    d.     Prestigio (smart devices and accessories, innovative solutions for business and education, etc.)
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 two master distribution centers located in the Czech Republic and in the United Arab Emirates, subsidiaries in 27 countries, more than 2,000 employees and about, 20 000 active customers in 56 countries worldwide. In 2021, the Group delivered sales of close to USD 3.1 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}