ASBIS ACHIEVES EXCELLENT RESULTS IN Q1-Q3 2023, SETTING MONTHLY SALES RECORDS

The Group continues to expand its operations dynamically and remains confident about achieving the financial forecast for 2023  

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), generated very strong financial results in the three quarters of 2023. Revenues in the period Q1-Q3 2023 amounted to nearly USD 2.2 billion (nearly PLN 9.2 billion) and were 14% higher than those generated in the same period last year (USD 1.9 billion). The Group's net profit in the 9 months of 2023 amounted to USD 50.9 million (PLN 215.4 million), compared to USD 47.2 million for the respective period of 2022, an increase of 8%. In the third quarter of 2023 stand-alone, ASBIS generated USD 771.8 million (PLN 3,209.8 billion) in revenues and USD 22.2 million in net profit (PLN 92.5 million).

The Company's results are in line with the expectations and published financial forecast for 2023. After the first nine monthsof the year, the level of realization in revenues is at 69% and 62% 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 fast-growing Kazakhstan, while the FSU region still maintained the largest share in the Group's revenues (more than 51% in the Q1-Q3 2023).
• Poland has become a permanent member among the 10 countries with the highest revenues in the Group, moving up to the 7th place in the three quarters of this year with revenues of nearly USD 81.2 million.
• ASBIS extended its cooperation with Bang & Olufsen and introduced this brand to African markets and opened 2 new showrooms of this brand in its markets.
• ASBIS is dynamically expanding its product portfolio. In the third quarter, it signed new contracts or expanded cooperation with the following suppliers: Gen (Norton), Pure Storage, ProMobi Technologies, ASUS AIoT (NUC).

Serhei Kostevitch, CEO of ASBIS Group, commented: "In the third quarter of 2023, despite inflationary pressures, weaker demand, and geopolitical uncertainty, ASBIS increased its revenues across all major operating markets, including well-established markets in the Caucasus, Western Europe, and Africa. The Group once again demonstrated its strength and determination to deliver solid results. We are also enhancing the development of our own products and IT services portfolio with technologically advanced solutions, including a robotics-related division - ASBIS Robotic Solutions (AROS). The results of the third quarter of 2023 allow us to look forward to the coming months with optimism and this further strengthens our belief to achieve our very ambitious financial forecast for 2023." 

FINANCIAL RESULTS 

A summary of the financial results of the ASBIS Group in the first nine months 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 have the largest share in the Group's revenues. This has not changed either in the third quarter of 2023 or in the 9-month period of 2023.

In the third quarter of 2023 and the 9 months of 2023, revenues generated in the FSU region increased by 3.8% and 12.6%, as compared to the same periods last year. An even more positive trend was visible in the Central and Eastern European region (growth of 30.3% in the third quarter of 2023 and 14.8% in 9 the months of 2023). Sales in the Middle East and Africa increased by 1.5% in the third quarter of 2023 and 6.1% in the 9-months of 2023, as compared to the respective periods of 2022. Western Europe showed a significant revenue growth in both the third quarter of 2023 and for the 9 months of 2023 (an increase of 49.8% and 50.6%, respectively).

As a result of the above facts, the share of some regions - e.g., the Central and Eastern Europe region, in the Company's total revenues for the third quarter of 2023 and the 9 months of 2023 has changed compared to the corresponding periods of 2022. The share of Central and Eastern Europe increased both in the third quarter of 2023 and for the 9 months of 2023 to 24.49% (from 20.76%) and 24.42% (from 24.15%), respectively. At the same time, the share of the FSU region decreased to 49.91% (from 53.13%) in Q3 2023 and 51.40% (from 51.84%) for the 9 months 2023.

SALES BY COUNTRY

Analysis by country shows continued strong demand in Kazakhstan - the Group's largest market, where our sales in Q3 2023 remained stable but increased by 21.0% for the 9 months of 2023, as compared to the same periods in 2022. Operations in Ukraine - the second largest market of the Group's operations and directly affected by the war, increased by 8.4% in the third quarter of 2023 and 37.0% for the 9 months of 2023, as compared to the corresponding periods of last year. United Arab Emirates – our third largest market delivered revenues of USD 240.8 million in the 9M 2023, up 3.6% year-on-year. Georgia and Azerbaijan recorded a strong growth in both Q3 2023 and the 9 months of 2023, as compared to the same periods of 2022. 

Poland generated a strong growth, both in the third quarter of 2023 and for the nine months of 2023 (+43.4% and 37.4%, respectively). The increase in Poland is mainly due to sales of traditional IT components such as processors, graphics cards and solid-state drives (SSDs), but also due to consumer goods (taking into account a very successful sales development of Bang & Olufsen).

 Countries with the highest sales increases were as follows:

• Poland - a growth of 43.4%
• Slovakia – a growth of 39.3%
• Germany - a growth of 37.3%

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 34 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}