ASBIS HAD A GREAT Q1 2023 AND IS ON TRACK FOR FURTHER STRONG INCREASES IN SALES

ASBISc Enterprises Plc, 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), generated excellent financial results in the first quarter of 2023. Sales revenues in the first quarter of 2023 amounted to USD 722 million, which represents a 4% increase over Q1 2022  (USD 694.6 million). Net profit for the period was USD 17.4 million, up 8% from Q1 2022 (USD 16 million). The Group also significantly improved its gross profit margin to 8.6% from 7.61% in Q1 2022. 

OTHER IMPORTANT EVENTS IN Q1 2023: 

• The largest ASBIS country in terms of sales was Kazakhstan, while the FSU region still maintained the largest share in Group revenues (over 56%).
• 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 26 million (an increase of close to 13% compared to the same period of last year).
• The Annual General Meeting on May 10, 2023 adopted a resolution on the payment of dividend from the Company's 2022 profits  of USD 0.25 per share. The total dividend from the Company's 2022 profits  including the interim dividend, will be USD 0.45 per share, a combined payout of USD 25.0 million, a record in the Company's history.
• ASBIS doubled the area of its distribution center in Prague (Czech Republic) to 10,000 m² and opened a distribution center in Tbilisi (Georgia) with an area of over 3,000 m2. The first center supplies Central and Eastern Europe, while the center in Tbilisi is a distribution base for the Caucasus region. The Company has also opened a distribution center in Johannesburg (South Africa), to support operations in South and Central Africa.
• ASBIS dynamically develops its activities:

- opened a subsidiary in Greece which started selling in the country
- doubled its robotic business division - ASBIS Robotic Solutions (AROS) and launched this division in new countries such as Hungary and Bulgaria as well as in the Middle East and North Africa (MENA region)
- invested in Theramir Ltd – another biotechnology company that develops technologies based on stem cells and RNA for the diagnosis and treatment of cancer
- Breezy, a subsidiary of ASBIS, due to its dynamic development, started operations on two new markets: Poland and Moldova.

“ASBIS is in a great condition,” said Serhei Kostevitch, CEO of ASBIS Group. “The year 2022 proved to be very difficult but thanks to our experience, ability to quickly respond to crisis situations and the implementation of bold business decisions, it paid off by delivering outstanding results in 2023 and in the Q1 2023. I can confidently say that we see the future in bright colours. This can already be seen in the first quarter of this year, in which we faced the still high comparative base from 2022. Not only did we increase sales, but most importantly for us and our investors, we significantly increased our profitability. We will follow this direction throughout 2023.” 

FINANCIAL RESULTS 

ASBIS generated very strong financial results in the discussed period. A summary of the financial results of the ASBIS Group in the first quarter of 2023 and the first quarter of 2022 are presented in the tables below (presentation of results are in USD and also in PLN). The official reporting currency of the Group remains the USD.







FORECAST FOR 2023 

On April 5, 2023, ASBIS published its financial forecast for 2023. According to the assumptions, the Group plans sales revenues in 2023 to be between USD 3.0 billion and USD 3.2 billion, while the net profit after tax is estimated 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. 

DETAILED SALES DATA

SALES BY REGION

The regions of the former USSR and Central and Eastern Europe traditionally account for the largest share of our revenues. This has not changed in Q1 2023. Due to the change in our sales strategy, the share of some regions - e.g. Central and Eastern Europe - in the Company's total revenues for Q1 2023 has changed compared to Q1 2022.

The share of the FSU region increased to 56.16% compared to 55.25% in Q1 2022. The share of Central and Eastern Europe region decreased to 22.16% from 23.88% in Q1 2022. The share of Middle East and Africa Region decreased to 12.72% from 13.06% in Q1 2022. The share of Western Europe increased to 8.41% from 6.27% in Q1 2022. The main reasons for lower sales in the CEE region are high inflation and lower customer demand.





SALES BY COUNTRY

Country-by-country analysis shows a strong improvement in Kazakhstan – Company’s number one market, where sales increased by 40.1% in Q1 2023 compared to the same period of 2022. Operations in Ukraine – the second largest market for ASBIS operations and one of countries directly affected by the war, significantly increased by 31.8% compared to the first quarter of 2022. The countries with the highest sales growth in Q1 2023 were:

• Georgia - increase by 118.9%
• Azerbaijan - increase by 102.4%
• Armenia - increase by 61.8%
• Kazakhstan - increase by 40.1%
• Ukraine – increase by 31.8%. 

Poland recorded solid growth in Q1 2023 (+12.8%) compared to Q1 2022. The best-selling product categories in Poland were processors, graphic cards and accessories.
 



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 28 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}