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ASBIS Q4 2009: Strong Revenues Indicate Recovery

February 24, 2010

Investors, financial results

ASBIS Q4 2009: Strong Revenues Indicate Recovery

Press-release: The company back on track to reach levels from before the crisis

 Warsaw, 24th February 2010

The company back on track to reach levels from before the crisis

ASBISc Enterprises Plc, a leading distributor of IT products in emerging markets of Europe, the Middle East and Africa, has significantly improved its financial results in Q4 2009. The Company generated revenues of U.S.$ 409,714 – 12.8% higher than U.S.$ 363,266 in the corresponding period of 2008. ASBIS generated a net profit after taxation of U.S.$ 2,413 compared to a net loss of U.S.$ 6,427 in Q4 2008. The Company’s management remains optimistic about the future and expects growth in both revenues and profitability for 2010.

Throughout 2009 we have been improving our results quarter-on-quarter. This was possible because of improved product portfolio and upgraded hedging strategies. That allowed us to benefit from the recovery in our main markets in Q3 and especially in Q4’09, when revenues in all major regions grew compared to both Q4’08 and to any previous quarter of 2009. The Company has enhanced its market share it is most of the countries it operates in; in Ukraine –despite the fact that the market has shrunk significantly compared to Q4’08- our revenues have grown by 82.3%. Apart from that, gross profit, operational profit and net profitability returned to a satisfactory level in Q4 2009 and we expect this trend to continue in 2010”, said Siarhei Kostevitch, ASBIS Chairman and CEO.

The last quarter of 2009 was the second consecutive profitable quarter since Q4 2008.  ASBIS recorded a net profit of USD 2,4m.

During 2009 we have improved our product portfolio in many countries by adding more A-branded goods (i.e., laptops), software and more of own brands sales to traditional IT components business, in order to improve margins”, commented Marios Christou, ASBIS CFO.

On the cost structure, our efforts initiated in November 2008 have resulted in significant cost savings in the second half of 2009. Q4 2009 selling expenses have decreased by 27,93%, compared to the respective period of 2008, despite significant growth of revenues and gross profit”, continued Marios Christou, ASBIS CFO.  

2009 financial results

In USD thousands

Q4 2009

Q3 2009

Q2 2009

Q1 2009

Q4 2008

Revenues

409,714

289,024

231,255

237,914

363,266

Gross profit

19,671

14,421

11,687

7,179

14,517

Gross profit margin

4.8%

5.0%

5.1%

3.0%

4.0%

Administrative expenses

(6,689)

(5,340)

(5,356)

(5,569)

(6,875)

Selling expenses

(7,886)

(6,989)

(6,121)

(6,118)

(10,942)

Operating profit

5,096

2,092

210

(4,509)

(3,300)

EBITDA

5,786

2,800

919

(3,785)

(2,554)

Net profit

2,413

1,111

(313)

(6,208)

(6,427)

Summary of growth trends in 4Q 2009:

  • Revenues: In Q4 2009 revenues increased by 12.79% to U.S. $ 409,714 from U.S. $ 363,266 in the corresponding period of 2008. This increase reflected the ability of the Company to weather the crisis effects and increase its revenues.
  • Gross profit: In Q4 2009 gross profit increased by 35.5% to U.S. $ 19,671 from U.S. $ 14,517 in the corresponding period of 2008.
  • Selling expenses in Q4 2009 decreased by 27.93% to U.S. $ 7.886 from U.S. $ 10.942 in the corresponding period of 2008. In Q4 2009 selling expenses represented 1.92% of the Company’s revenues compared to 3.01% in the corresponding period of 2008.
  • Administrative expenses in Q4 2009 decreased by 2.72% to U.S. $ 6,689 from U.S. $ 6,875 in the corresponding period of 2008. Despite growing sales and gross profit year-on-year, the Company was able to reduce administrative expenses due to cost-cutting actions.
  • Operating profit:In Q4 2009the Company had an operating profit of U.S. $ 5,096, compared to an operating loss of U.S. $ 3,300 in the corresponding period of 2008.
  • Net profit after taxation in Q4 2009 reached U.S. $ 2,413 in comparison to a net loss of U.S. $ 6,427 in the corresponding period of 2008. Furthermore, in Q4 2009 the Company delivered a net profit for a second quarter in a row in 2009, depicting a positive trend in profitability.

Detailed information on sales profile

In Q4 2009 the Company was able to increase its revenues from almost all regions of its operations. The Central and Eastern European region remained number one with 5.59% year-on-year growth.

The F.S.U. region picked up by 16.55% compared to the corresponding period of 2008. If this positive trend in the F.S.U. region continues, it is likely that it will regain its no. 1 position in the Company’s geographical breakdown of revenues.

In addition to growth in the F.S.U. and CEE regions, the Middle East (including Turkey) is the Group’s fastest growing region enjoying a 26.62% increase year-on-year.

Revenue structure by regions, Q4 2009 and Q4 2008:

Q4 2009

Q4 2008

Change

 

U.S. $ thousands

% of total revenues

U.S. $
thousands

% of total revenues

%

 

Central and Eastern Europe

156,663

38.24%

148,371

40.84%

+5.59%

Former Soviet Union

152,467

37.21%

130,812

36.01%

+16.55%

Middle East and Africa

51,480

12.56%

40,656

11.19%

+26.62%

Western Europe

38,411

9.37%

39,209

10.79%

-2.04%

Other

10,693

2.61%

4,218

1.16%

+153.55%

Total

409,714

100%

363,266

100%

N/A

The Company is also developing its own brands sales, Canyon and Prestigio, as traditionally they deliver double digit gross margins. In Q4 2009 own brands contribution to total sales revenue was close to 5%. It is the Company’s intention to further develop own brands sales so that in the medium term their contribution to total sales revenue reaches 10%.

For additional information, please contact:

Mr Daniel Kordel, ASBISc Enterprises PLC, Investor Relations
Tel. +00 357 99 633 793
Tel. +48 509 020 021
E-mail: d.kordel@asbis.com

Mr Costas Tziamalis, ASBISc Enterprises PLC, Investor Relations
Tel. +00 357 25 857 000
E-mail: costas@asbis.com

Mrs. Iwona Mojsiuszko, M+G
Tel. +48 22 625 71 40
E-mail: iwona.mojsiuszko@mplusg.com.pl

ASBISc Enterprises Plc is based in Cyprus and specializes in the distribution of computer hardware  and software, mobile solutions, blocks and peripherals, and a wide range of IT products and digital equipment. Established in 1995, the Company has a presence in Central and Eastern Europe, the Baltic States, the former Soviet Union, the Middle East, and North Africa, selling to 75 countries worldwide. The Group distributes products of many vendors and manufactures and sells private-label products: Prestigio (LCD monitors, laptops, external storage, leather-coated USB accessories, GPS devices, etc.) and Canyon (MP3 players, networking products and other peripheral devices). ASBIS has subsidiaries in 26 countries, more than 1,000 employees and 30,000 customers. The Company’s stock has been listed on the Warsaw Stock Exchange since October 2007 under the ticker symbol “ASB” (ASBIS).

For more information, visit also the company's website at www.asbis.com

 

Disclaimer: The information contained in each press release posted on this site was factually accurate on the date it was issued. While these press releases and other materials remain on the Company's website, the Company assumes no duty to update the information to reflect subsequent developments. Consequently, readers of the press releases and other materials should not rely upon the information as current or accurate after their issuance dates.