ASBIS AFTER THREE QUARTERS IN 2021: RECORD GROSS MARGIN AND NET PROFIT, GREAT OUTLOOK FOR THE YEAR

ASBISc Enterprises Plc, a leading distributor of IT products in the emerging markets of Europe, the Middle East and Africa, generated outstanding financial results both in the nine months of this year and for the third quarter of 2021. Sales revenues for Q1-Q3 2021 exceeded USD 2.1 billion compared to USD 1.5 billion in the same period last year, an increase of 42%. Net profit tripled during this period to USD 48.4 million, compared to USD 15.1 million in Q1-Q3 2020.

In the third quarter of 2021, ASBIS significantly improved both revenues and profits. Revenues were USD 716.5 million (up 16% compared to Q3 2020), while net profit was USD 18.2 million, up 75% over the comparable period last year.

ASBIS generated a record gross margin on sales in the discussed period, which for Q1-Q3 2021 was 6.91%, while for Q3 2021 was 7.37%.

OTHER IMPORTANT EVENTS IN Q1-Q3 2021:

• The FSU region had the largest share in the Group’s revenues (close to 55% share), followed by the Central and Eastern Europe region (22% share).
• Poland has become a permanent member among the 10 countries with the highest revenues, taking the 9^th place for the nine months of 2021 with revenues of over USD 52.4 million (an increase of close to 14% compared to the same period of last year).
• The Company continued its dividend policy by adopting an interim dividend of USD 0.20 per share, which is twice as high as for the year before. The record date for the shareholders to receive dividend was set on the 18^th November 2021 and the payment date on the 2^nd of December 2021.
• On August 25, 2021, ASBIS increased its published financial forecast for 2021. Revenues  are forecasted to be in the range between USD 2.9 billion to USD 3.1 billion, while net profit after tax between USD 71 million and USD 74 million USD. 

“It is almost certain that this year we will break new records and beat our expectations, not only in terms of sales, but also in terms of profitability,” said Serhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc. “Our margin was record-high in Q3 in our history, and the entire Q3 was the best period in our long history. As you can see, we are not slowing down. We are in the most intense period of the year in our industry. Our goal is not only to increase revenues, but also deliver the highest possible profit for our shareholders. So far, we are very satisfied with the Company’s  results. We will use every possible opportunity to develop even higher results going forward.”

DETAILED SALES DATA

SALES BY REGION

The FSU and CEE regions traditionally account for the largest share of the Group's revenues. This has neither changed in the third quarter of 2021, nor in the nine-months of 2021. In the third quarter of 2021, sales of the FSU and CEE regions increased by 24.0% and 1.0%, respectively, while for the nine months of 2021 sales in both regions increased by 46.3% and 21.2%, respectively.

The FSU region's share in total ASBIS revenues increased to 58.99% in Q3 2021 from 55.03% in Q3 2020; for the nine months of 2021 it reached 54,84% versus 53.21% for the nine months of 2020.

Sales growth in the FSU countries was driven by sales of multiple product lines and VAD business projects.

SALES BY COUNTRY

Country-by-country analysis confirms the excellent growth rates the Group was able to achieve in all major countries of operation.

The countries with the highest sales growth in Q1-Q3 2021 were:

• Kazakhstan – growth by 86.6%
• Czech – growth by 39.6%
• Ukraine – growth by 37.8%
• Russia – growth by 37.7%
• United Arab Emirates – growth by 34.2%.
• Belarus – growth by 23.4%
• Poland – growth by 13.6%
• Slovakia – growth by 11.5%. 

ASBIS significantly improved sales in Western Europe, which for  the nine months of this year increased by 115.3% compared to the same period last year.

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.     Prestigio (smart devices and accessories, innovative solutions for business and education, etc.)
    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).
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 2020, the Group delivered sales of nearly USD 2.4 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}