More than doubled net profit during the 9 months of 2018

Limassol, Cyprus, 7th November 2018 - ASBISc Enterprises Plc, a leading distributor of IT products in the emerging markets of Europe, the Middle East and Africa, generated very good financial results both during the nine months  and in the third quarter of 2018. During the nine months of 2018, sales revenues amounted to nearly USD 1.5 billion as compared to USD 0.9 billion in the corresponding period of 2017, which indicates an increase by 59%. Gross profit grew by 37% to USD 68.8 million from USD 50.2 million in the nine months of 2017. Net profit during Q1-Q3 of 2018 increased over two times to USD 7.1 million, as compared to USD 3.1 million in the corresponding period of the previous year. In Q3, the Group generated revenues of USD 532.3 million, as compared to USD 372.8 million in the corresponding period of 2017, which indicates an increase by 43%. Gross profit grew to USD 25.6 million from USD 20.0 million in Q3 of 2017 (increase by 27%). Net profit in Q3 2018 doubled to USD 4.2 million, from USD 2.1 million in the corresponding period of the previous year.

ASBIS remains a first-choice distributor for numerous IT producers around the world. The Group’s strategy is to generate the best possible results for its shareholders. During the nine months of 2018, the greatest share in the Group’s revenue has been in the Former Soviet Union (increase by 74%) and Central & Eastern Europe (increase by 28%). All of the key product lines noted significant sales growth during the nine months of 2018, as compared to the corresponding period of the previous year. The driver of the greatest sales increases in this period was on smartphones, which have increased by nearly 154% as compared to the first nine months of 2017. Among other product lines, in the nine months of 2018, the Company observed growth in sales of laptops (increase by 34%) and SSD drives (increase by 36%).

On 31 October 2018, the Company upgraded its financial forecast for 2018 according to which the Group expects to generate revenues between USD 2.1 billion and USD 2.2 billion, and net profit after tax between USD 11.5 million and USD 13.0 million.

On 6 November 2018, the Company’s Board of Directors decided on a payment of an interim dividend from 2018 profits of USD 0.05 per share. The record date for the shareholders to receive dividend is Friday, 7 December 2018, and the payment date is  the 20^th of December 2018.

“The nine months of 2018 were quite successful but also an intensive period for our Company,” said Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc. “Our revenues were growing rapidly and our profitability was increasing. We are very happy for our growing financial results. Ahead of us, there is the best period of the year in terms of both sales and, most importantly, profitability. We are prepared this time – thanks to our successful sales strategy -  to improve both our market share in most of the markets we are present in. This means that we entered the third quarter from a strong position, which we intend to strengthen even further in Q4. Our activities will focus not only on revenues but also on profitability. That is why we have decided on raising our financial forecast, which assumes generating both higher revenues and profits.”  

DETAILED SALES DATA  

“Traditionally, the greatest share in our revenue has been in the Former Soviet Union and Central & Eastern Europe. This situation has not changed in the third quarter and during the nine months of 2018. In the third quarter of 2018, sales in the FSU region  increased by 52%, while sales in Central & Eastern Europe increased by 13%. During the nine months of 2018, sales in the FSU region increased by 74%, while sales in Central & Eastern Europe increased by 28%. We strongly believe that the stable growth trend of our sales in both regions will continue in the immediate future,” added Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc.

SALES BY REGION 

The share in ASBIS’s revenue in the FSU region to overall sales grew to 51.9% during the nine months of 2018, from 47.3% in the corresponding period of the previous year. The Group also noted an increase in sales in Western Europe (increase by 99%) and in the Middle East and Africa (increase by 42%).

SALES BY COUNTRY  

A country-by-country analysis allows for a better understanding of the trends presented above. The growth in the FSU region resulted from the continuous improvement in Russia (+63% in Q3 2018 and +58% in the nine months of 2018), in the Ukraine (+38% in Q3 2018 and +79% in the nine months of 2018), in Kazakhstan (+48% in Q3 2018 and +59% in the nine months of 2018), and in Belarus (+51% in Q3 2018 and +71% in the nine months of 2018).

During the nine months of 2018, the 22% growth in Slovakia, together with an 11% growth in Romania and 8% growth in the Czech Republic, contributed to the growth in the regain of Eastern and Central Europe. The result in the Middle East and Africa is determined mainly by revenue in the United Arab Emirates (+31% in Q3 2018 and +55% in the nine months of 2018).

SALES BY PRODUCT LINE  

During both Q3 2018 and the nine months of 2018, almost all main product lines of the Group achieved sales growth as compared to the corresponding periods of the previous year.

The key factor of the sales growth during the first nine months of 2018 was the sales of smartphones, which increased by 145% as comparred to the corresponding period of the previous year. During the same period, revenue from the sales of central processing units increased by 22%, hard disk drives by 15%, laptops by 43%, and SSD drives by 36%.

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}  

^{ASBISc Enterprises Plc is one of the leading distributors of IT industry products in the emerging markets of Europe, the Middle East and Africa (EMEA): Central and Eastern Europe, the Baltic republics, the former Soviet Union, the Middle East and North Africa, combining a wide range of geographical operations with a wide portfolio of products distributed by its "one-stop-shop" model.}

^{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. The Company was established in 1990, selling to 60 countries worldwide currently.}

^{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, Multi-boards etc.) and Canyon (MP3 players, networking products and other peripheral devices).}

^{ASBIS has subsidiaries in 24 countries, about 1,500 employees and 30,000 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}