ASBIS Results In Q3 2017: Revenues Growth Of 35% To $ 372 Million And 51% Growth In Net Profit After Tax Exceeding U.S.$ 2 Million

Limassol, Cyprus, November 7th, 2017 - ASBISc Enterprises Plc, a leading distributor of IT products in the emerging markets of Europe, the Middle East and Africa, significantly improved its results continuing the positive trend for another quarter. In Q3 2017 the Group increased its revenues by almost U.S.$ 100 million or 35% to U.S.$ 372.8 million from U.S.$ 276.1 million in Q3 2016. For the nine months of 2017 revenues grew by U.S.$ 170 million y-o-y and reached U.S.$ 943,5 million, as compared to 773,5 million in the first nine months of 2016. 

With expenses under control, Q3 2017 net income was much improved reaching U.S.$ 2.1 million, as compared to U.S.$ 1.4 million in the corresponding period of 2016. For the nine months of 2017, ASBISc posted a net profit after tax exceeding U.S.$ 3.1 million, significantly better as compared to U.S.$ 2,0 million for the nine months of 2016.

With such growth in revenues and profitability coupled with opportunities in the major markets for the Q4 2017, the Company fully sustains its financial forecast for the year 2017. It is expected that for the full year revenues will reach between U.S.$ 1,2 and U.S.$ 1,3 billion, while net profit after tax will reach between U.S.$ 5 to U.S.$ 6 million.

Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc, commented: “In 3Q 2017 we have continued on our strategy introduced back in 2015 and as a result we recorded strong and healthy double digit growth in revenues. We are satisfied with good and strong results. Revenues grew across both the F.S.U. and CEE regions signalling full recovery of the Group. We expect to keep this healthy profitability for the remainder of the year and  deliver our financial forecast for the year. We still have a lot of room to improve and the team of ASBIS is highly motivated to make the Company really strong and market leader in all segments we operate in.”

Siarhei Kostevitch continued: “Positive improvement at all levels of our Income Statement give us strength and confidence that the best days of ASBIS are still ahead of us. We are committed to have a positive cash flow from operations and all indicators are positive for this to be achieved by the end of the year.” 

DETAILED INFORMATION ON SALES PROFILE

In Q3 2017 revenues in F.S.U. grew by 43.98% and in CEE by 35.82%. As a result, after nine months of 2017 sales in the F.S.U. countries grew by 53.24% while sales in CEE grew by 5.12%, Strong upward trend in sales for both territories should remain in place in the near future. Following all the above mentioned changes, the F.S.U. share in total revenues grew to 47.24% in the 9 months of 2017 from 37.66% in 9 months of 2016. 

Country-by-country analysis reveals a better understanding of the above mentioned trends. Growth in F.S.U. has arisen from a continuous improvement in Russia (+9.62% in Q3 2017 and +30.02% in 9M 2017), Ukraine (+52.90% in Q3 2017 and +43.96% in 9M 2017), Kazakhstan (+111.99% in Q3 2017 and +155.26% in 9M 2017) and Belarus (+47.40% in Q3 2017 and +43.48% in 9M 2017). At the same time, strong growth in CEE for Q3 2017 and more tempered growth in this region for the 9 months of 2017 is a result of tendencies in Slovakia (+19.41% in Q3 2017 and -15.97% in 9M 2017), Czech Republic (+35.10% in Q3 2017 and +21.36% in 9M 2017) and Romania (+93.11% in Q3 2017 and +38.99% in 9M 2017). The MEA result is mainly determined by our revenues in UAE (-4.61% in Q3 2017 and -1.31% in 9M 2017).

Growth in Q3 2017 sales was driven by sales of smartphones, tablets, SSDs, HDDs  and other smaller product lines, while sales of traditional components were relatively stable year-on-year. Revenues from CPUs decreased by 5.11% in Q3 2017 and by 3.32% in the 9 months of 2017. Revenues from HDDs increased by 6.03% in Q3 2017 and decreased by 1.72% in the 9 months of 2017. This was boosted by the increase in sales of SSDs (+69.38% in Q3 2017 and +121.55% in 9M 2017). Tablets business grew by 24.57% in Q3 2017 and by 9.58% in the 9 months of 2017. Finaly, smartphones - which is the key driver of sales growth, increased by 77.70% in Q3 2017 and by 64.69% in the 9 months of 2017. 

From other product lines, the Company has noticed a positive trend for Q3 and the 9 months of 2017 in mainboards and VGA cards (+494.57% and +204.54%), peripherals (+33.73% and +34.77%), memory modules (+108.17% and +92.39%), accessories and multimedia (+32.25% and +39.83%) and flash memory (+59.32% and +21.52%). 

For additional information, please contact:

Daniel Kordel, ASBISc Enterprises PLC, Investor Relations
Tel. +48 662 900 261
E-mail d.kordel@asbis.com 

Costas Tziamalis, ASBISc Enterprises PLC, Investor Relations
Tel. +357 25 857 000
E-mail costas@asbis.com

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. Established in 1990, the Company has a presence in Central and Eastern Europe, the Baltic States, the former Soviet Union, the Middle East, and North Africa, selling to 60 countries worldwide. 

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, Multiboards etc.) and Canyon (MP3 players, networking products and other peripheral devices).

ASBIS has subsidiaries in 24 countries, about 1,100 employees and 32,000 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