ASBIS PUBLISHES ITS FINANCIAL FORECAST FOR 2021

THE STRONG SUCCESS OF ASBIS CONTINUES; COMPANY PLANS A SIGNIFICANT INCREASE IN PROFITABILITY 

ASBISc Enterprises Plc, a leading distributor of IT and CE products on emerging markets of Europe, the Middle East and Africa, published today its financial forecast for 2021. According to the projections, the Group expects sales revenue in 2021 between USD 2.7 billion and USD 2.9 billion, and net profit after tax between USD 47 million and USD 51 million. This is a significant increase in results compared to those generated in 2020. 

In 2020, the Group generated record-breaking financial results in its history: ASBIS revenues amounted to nearly USD 2.4 billion, while the net profit amounted to USD 36.5 million. 

Siarhei Kostevitch, CEO and Chairman of the Board of Directors ASBISc Enterprises Plc, commented: “The success of 2020 has not been a bubble for our company. We are aiming higher having prepared the company to be even stronger. The demand in IT sector for products and services we are offering is not weakening. It is expected that investment outlays in this sector will remain at a high level for the foreseeable future. ASBIS will be benefiting from this trend, as evidenced both by the financial results for 2020 and our forecasts for 2021. The forecasted values result from the Company's strategy including - but not limited to - a greater focus computing and consumer electronic products – including our own brands - thru Retail, e-Tail and SMB routes to market as well as our solutions for Data Centers to medium and large enterprises in the geo where we operate. We continuously enhance our position in the markets  of CEE, FSU, MEA and well prepared to meet the increasing demand for IT equipment.” 

Siarhei Kostevitch added: “We plan that our revenues will increase by an approximate solid 20% reaching at USD 2.9 billion in 2021. We assume a much higher increase in profitability, which confirms the good strategy and economy of scale. In 2020, we generated a net profit of USD 36.5 million, now we expect it to increase to even USD 51 million, i.e. close to 40% YoY growth.” 

The significant assumptions of the forecasted results are the following:

• there will be no further lockdowns that may lead to the closure of retail stores and a significant reduction in consumer spending,
• the political situation in the markets in which the Group operates will not deteriorate and the financial situation in our main markets will be stable,
• there will be no significant decrease in demand or supply for IT products,
• the financial situation on the main ASBIS markets, i.e. in Russia, Ukraine, Kazakhstan, Belarus and Slovakia, will not deteriorate compared to 2020,
• there will be no significant devaluation of currencies in Russia, Belarus, Kazakhstan and Ukraine, and thus will not adversely affect these markets,
• there will be no significant disruptions in the general economic environment in other markets where the Company operates,
• there will be no significant drop in demand for high-margin products and solutions, both in terms of value-added distribution (VAD) and private label products,
• competition in all major segments will remain similar to 2020, there will be no significant new market participants,
• The Group will continue to enjoy the same commercial terms with its key suppliers,
• the smartphone segment will not deteriorate by more than 10% compared to 2020, in the markets where the Group operates,
• there will be no significant problems with the availability of individual IT components.

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 geographical operations with a wide portfolio of products distributed in the "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 and currently selling to 56 countries worldwide.}

^{The Group distributes products of many vendors, and manufactures and sells own brands products: Prestigio (tablets, external storage, GPS devices, car-DVRs, multi-boards etc.), Canyon (power banks, networking products and other peripheral devices) and Perenio („IoT”).}

^{ASBIS has subsidiaries in 27 countries, more than 1,800 employees and about 20,000 customers. In 2019, sales exceeded USD 1.9 billion.}

^{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}