Excellent revenue and even better growth in profitability for ASBIS in the 1st quarter of 2020 despite coronavirus pandemic

ASBISc Enterprises Plc, a leading distributor of IT products in the emerging markets of Europe, the Middle East and Africa, generated very good financial results in the 1^st quarter of 2020. Sales revenues in the period were USD 500.5 million, compared to USD 417.3 million in the same quarter of 2019, an increase of 20%. Net profit in 1Q 2020 rose by 32%, to USD 2.2 million, from USD 1.7 million in 1Q 2019

ASBIS remains the distributor of first choice for many global IT producers, and the Group’s strategy is to generate the best possible results for its shareholders. In 1Q 2020 the greatest share in the Group’s revenue was generated in the countries of the Former Soviet Union (53% share) and Central & Eastern Europe (nearly 29%). The largest country in terms of revenue generated in 1Q 2020 was Russia. For another consecutive quarter, Poland, with revenue of close to USD 19.6 million, ranked 7^th among the top 10 countries generating the biggest revenue in the Group.

On 6 May 2020, the Annual General Meeting of the Company, in accordance with the recommendation of the Company’s Board of Directors of 27 March 2020, decided to pay out a final dividend from the profit for 2019 in the amount of USD 0.075 per share, i.e. USD 4,162,500. The dividend date was set at 21 May 2020 and the dividend payment date at 4 June 2020. Thus the total dividend from the 2019 profit, together with the interim dividend paid on 19 December 2019, will be USD 0.135 per share, which means a total payment of USD 7,492,500. This is the highest dividend in the Company’s history.

“The first quarter of this year ended all over the world under the shadow of the coronavirus and gradual closing of all borders,” said Siarhei Kostevitch, CEO and Chairman of ASBISc Enterprises Plc. “Thanks to our great geographical reach and rapid, flexible adjustment to prevailing conditions, we managed not only to maintain, but first and foremost to significantly increase our sales. All product lines noted dynamic sales growth. Our total sales grew by 20%, and net profit by 32%, compared to the 1^st quarter of 2019. We are very satisfied with this result.”

Siarhei Kostevitch added: “The second quarter of this year, which is very difficult for us all, has already begun. This is also a quarter that for our sector is customarily the weakest in the whole year. The situation is additionally hindered by closing of practically all major operating markets, which is felt particularly in retail sales. Fortunately, we already see signs of opening of markets, and in our view the situation should normalize in May. However, we anticipate that sales this year will be lower than last year, but we are prepared for that. We intend to maintain our strong market position and focus on gaining and serving large business projects. We also anticipate that the remodelled Prestigio brand, together with the Canyon and Perenio brands, will positively contribute to revenues and profitability.”

DETAILED SALES DATA 

SALES BY REGION  

The regions of the Former Soviet Union and Central & Eastern Europe traditionally have the largest share in the Group’s revenues. This did not change in the 1^st quarter of 2020. Sales in both of these regions grew strongly during this period, by 29.4% and 30.1% respectively. Taking into account all of the changes indicated above, the share of countries from the Former Soviet Union in total revenues grew to 53.06% in 1Q 2020, from 49.16% in 1Q 2019.

SALES BY COUNTRY  

A country-by-country analysis confirms the excellent growth indicators which the Group managed to achieve in all operating countries. The countries with the highest sales growth in the 1^st quarter were:

• Poland – growth of nearly 108%
• Kazakhstan – growth of 56.8%
• Belarus – growth of 44.8%
• Slovakia – growth of 28.6%
• Ukraine – growth of 23.7%.

Sales in the Middle East & Africa, a region where the results chiefly depend on revenues in the United Arab Emirates, fell by 11.7% compared to the 1^st quarter of 2019. Sales in Western Europe in 1Q 2020 also declined, by 10.1%, from 1Q 2019.

SALES BY PRODUCT LINE  

In the 1^st quarter of 2020, all of the Group’s main product lines grew significantly year-on-year. The greatest growth compared to the 1^st quarter of 2019 was generated by the following product lines:

• Software – growth of 82.7%
• HDDs – growth of 54.2%
• Servers – growth of 46.6%
• RAM memory – growth of 46.1%
• SSDs – growth of 41.0%
• Laptops – growth of 29.2%.

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 (smartphones, 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, 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 at www.asbis.com or investor.asbis.com}