ASBIS to make the highest profit in company’s history

ASBIS INCREASES THE NET PROFIT FORECAST FOR 2020 BY 25% FROM THE HIGH END OF THE ORIGINAL FORECAST

ASBISc Enterprises Plc, a leading distributor of IT products on emerging markets of Europe, the Middle East and Africa, increased the net profit forecast for 2020 published in August this year. According to the new financial forecast, net profit after tax will be between USD 23.0 million and USD 25.0 million, which means that it could reach 25% higher than originally assumed. Sales revenues remain at the level of the original forecast, i.e. between USD 2.0 billion and USD 2.2 billion.

The Group published its financial forecast for 2020 on 11 August 2020. It called for revenues between USD 2.0 and 2.2 billion and net profit after taxation between USD 18 and 20 million.

Siarhei Kostevitch, CEO and Chairman of the Board of Directors ASBISc Enterprises Plc, commented: “ASBIS is developing very dynamically this year. As announced, we focus not only on the development of the traditional distribution channel, but also on the development of sales of higher-margin products and IT solutions. We have a very strong position in our markets thanks to many years of experience and the ability to market products needed, meeting the expectations of our customers. We have quickly adapted to the market environment and we are able to meet the growing demand for equipment and advanced IT solutions. Therefore, we expect our profitability to be higher this year than originally assumed. Taking into consideration the financial and operating costs, expected to be lower than anticipated we have all reasons to believe that  2020 would be the most profitable year in our history.”

The reason for the upward adjustment is the result of:

• an increase in sales of higher-margin products and IT solutions,
• lower than anticipated financial expenses,
• lower than anticipated operating costs.

The significant assumptions of the forecasted results are the following:

• there will not be a second wave of pandemic and another lockdown which might lead to a significant decrease  in consumer spending,
• the situation in our major markets of Russia, Ukraine, Kazakhstan, Belarus and Slovakia will not deteriorate, as compared to 2019,
• there will not be any major devaluations of the currencies of Russia, Belarus, Kazakhstan and Ukraine, and therefore it will not negatively affect demand on those markets,
• there would be no significant disturbance in the general economic environment in other markets where the Company operates,
• there would be no significant decrease in sales of higher-margin products and solutions in both Value Added Distribution (VAD) and APPLE products,
• competition in all major segments will remain similar to that of 2019, with no new significant market entrants,
• Group will continue enjoying favorable terms from its key suppliers,
• smartphones segment will not deteriorate more than 15% compared to FY 2019 in the markets on which Group operates.

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), Perenio („IoT”).}

^{ASBIS has subsidiaries in 27 countries, close to 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 www.asbis.com}