GROWTH IN MARGINS AND COMPETENCIES IN PROMISING SECTOR OF IT SERVICES FOR BUSINESS

ASBISc Enterprises Plc, a leading distributor of IT products in the emerging markets of Europe, the Middle East and Africa, in line with its declarations, focused in the first three quarters of this year and in the 3^rd quarter stand-alone on business generating higher margins, i.e. value-added distribution (VAD) and growth of its own brands portfolio, in both the corporate and consumer segments of the IT market. In June 2019 ASBIS introduced the world’s first intuitive keyboard, Prestigio Click & Touch, combining the properties of a classic keyboard, a touchpad and a mouse. Continuing its strategy, in July the Group acquired for USD 574,000 the market-leading Belarusian company AVECTIS, greatly reinforcing its competencies in the segment of corporate IT services. These measures should result in higher margins in the next reporting periods, as well as higher profitability for the Group.

Sales revenues in the first three quarters of 2019 were over USD 1.25 billion, gross profit was USD 69.4 million, and net profit USD 7.2 million. In 3Q 2019 stand-alone, the Group generated revenue of USD 462.7 million, gross profit of USD 27.2 million, and net profit of USD 4.6 million. The gross margin in 3Q 2019 was 5.88%, the highest since 3Q 2016.

The Group published its financial forecast for 2019 on 27 March 2019. It calls for revenues between USD 1.7 and 1.9 billion and net profit after taxation between USD 8.5 and 10 million. Following publication of its financial results for the first three quarters of the year, ASBIS maintains strongly its published financial forecast.

ASBIS is currently conducting a program for buy-back of own shares, in which it plans to acquire up to 500,000 shares through July 2020 at a price of PLN 1.50–3.00 per share. The Group plans to earmark up to USD 300,000 for the entire program. Since 13 August 2019, the Company has acquired 223,000 shares.

The Group paid its shareholders a total dividend from 2018 profit of USD 0.10 per share (in total USD 5,550,000).

“We announced that we would concentrate this year on profitability, and we are consistently realizing our goal,” said Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc. “Last year was record-setting in the history of ASBIS in terms of revenues encouraged by several favorite external factors which this year are occurring to a limited extent. As we have anticipated this, we have most focused in improving margins for 2019. Despite lower revenues year-to-date, our net profit both over the first three quarters -and in the 3^rd quarter stand-alone- was higher year-on-year. Before us is the final quarter, which traditionally has been the best for our industry in terms of sales and profitability. Therefore, seeing the results through three quarters, we are quite confident that we will achieve the financial forecast for 2019, as published in March.”

DETAILED SALES DATA  

SALES BY REGION  

The regions of the Former Soviet Union and Central & Eastern Europe traditionally generate the greatest share in the Group’s sales revenue. In the first 9 months of 2019 they accounted for nearly 78% of the Group’s total sales. The largest region for ASBIS remains the FSU, which during that period accounted for over 51% of sales.

SALES BY COUNTRY

When analysing the sales results, it should be borne in mind that the decline in sales is the result of saturation of certain markets with smartphones and the resulting slowdown of sales in this 1category, which generates the Group’s highest sales. This slowdown has been anticipated by the Group.