ASBIS generated a net profit of as much as USD 16 million in the first quarter of 2022



ASBISc Enterprises PlcASBIS generated a net profit of as much as USD 16 million in the first quarter of 2022, a leading distributor with added value, developer and supplier of IT and IoT products, solutions and services in the growing markets of Europe, the Middle East and Africa, despite the extremely difficult market environment, generated very good financial results in the first quarter of 2022. In the article you will learn, among other things:

ASBIS Publishes Q1 2022 Results

Sales revenues in the first quarter of 2022 amounted to USD 694.6 million, which means that they were only 5% lower than those generated in the same period last year (USD 733.4 million). Despite the decline in revenues, the company increased its profitability in the reported period, generating a net profit of USD 16 million, i.e. 6% higher than in Q1 2021 (USD 15.3 million). The Group also significantly improved the gross profit margin to the level of 7.61% from 6.43% in Q1 2021.

Other important events in the first quarter of 2022:

The largest ASBIS country in terms of sales was Kazakhstan, while the FSU countries still maintained the largest share in the Group’s revenues (over 55%). Poland has already become a permanent fixture among the 10 countries with the highest revenues in the Group, occupying 8th place in the discussed period with revenues at the level of nearly USD 23 million (an increase of 2% compared to the same period last year). On May 4, 2022, the Annual General Meeting of the Company decided to pay the final dividend from the profits for 2021 in the amount of USD 0.10 per share, i.e. USD 5.55 million. The dividend date was set for May 16, 2022, and the dividend payment date for May 26, 2022. Thus, the total dividend from the profit for 2021, along with the advance dividend paid on December 2, 2021, will amount to USD 0.30 per share. . This equates to a total payout of $ 16.65 million. ASBIS has signed a contract for the lease of nearly 10,000 m2 of warehouse space for a new distribution center in Prague (Czech Republic). Thus, the area of ​​the ASBIS Group’s distribution center in Prague, which supplies the entire region of Central and Eastern Europe, will be doubled. ASBIS has opened a new Apple iPoint store in the Shum Shopping Center in the city of Aktau, Kazakhstan, the seventh Apple store opened by ASBIS in Kazakhstan. ASBIS continues to expand its business – it signed a distribution agreement with Loewe, a leading international premium TV and entertainment electronics brand, and extended its Vertiv product distribution agreement to Algeria and Tunisia (Africa). ASBIS allocated US $ 2 million to help Ukraine as part of a specially created and launched humanitarian fund #HelpUkraine Fund. – The first quarter was quite difficult for ASBIS, as well as for Europe and the whole world. Due to Russia’s attack on Ukraine and the war in Ukraine that had been going on since the end of February, the economic situation of many people and companies has changed dramatically. Therefore, we focused primarily on the safety of our employees, securing our warehouses and goods as well as reorganizing our business and setting new priorities. We quickly recovered some of the lost revenues from countries affected by the war. quarter of 2022 and very proud of the spirit of solidarity and unity of ASBIS Group employees in these difficult times – said Serhei Kostevitch, President of the ASBIS Group. – The results of the first quarter of 2022 prove, as we have repeatedly emphasized, that ASBIS is well prepared to defend its position in a difficult situation, thanks to its strong market position, flexibility in operation, over 30 years of presence on the IT market and strong relationships with suppliers. In our opinion, we have successfully completed the first quarter of 2022, the best in the history of the Group in terms of net profitability, added the President of the ASBIS Group.

IN SOLIDARITY WITH UKRAINE

In the first quarter of 2022, ASBIS, as a socially responsible company, whose activities include, inter alia, Ukraine, launched a special humanitarian fund #HelpUkraine Fund, and allocated USD 1 million to help Ukraine. Under this fund, ASBIS provides humanitarian aid to the most needy cities, hospitals and centers in Ukraine.

To date, the Group has delivered 10 fully equipped ambulances, ready for immediate aid and over 27,000 medical and first aid kits, technological products such as generators and power banks, and many other essentials, including blankets, sleeping bags and other items food and industrial.

FINANCIAL RESULTS

The summary of the financial results of the ASBIS Group in the first quarter of 2022 is presented in the table below:
XTB

Financial results of the ASBIS Group in the first quarter of 2022 and 2021
(million USD)

Q1
2022
Q1
2021
Change

Revenue
694.6
733.4 -5% Gross profit
52.9
47.2 + 12% Profit on operating activities (EBIT)
24.3
23.0 + 6%. Net profit after tax attributable to shareholders of the parent company
16.0
15.1 + 6%

SALES BY REGION

The FSU and CEE regions traditionally account for the highest share of our revenues. This did not change in Q1 2022, however, due to the ongoing war in Ukraine, revenues in the FSU region decreased by 2.4%, while sales in the CEE region decreased by 1.3%. The war, which also affected the neighboring countries of Ukraine, significantly reduced the demand among customers.
Geographical structure of ASBIS sales in Q1 2022 and Q1 2021

Q1 2022
Q1 2021

in thous.
USD

% of total revenues
in thous.
USD

% of total revenues

Former USSR countries 383,771 55.25% 393,287 53.63% Central and Eastern Europe 165,901 23.88% 168,096 22.92% Middle East and Africa 90,722 13.06% 89,237 12.17% Western Europe 43,538 6.27% 63,272 8 , 63% Other 10,679 1.54% 19,477 2.66%

Overall
694,611
100%
733,369
100%

SALES BY COUNTRY

Country-by-country analysis confirms that a significant drop in sales was recorded in the markets directly affected by the war in Ukraine. The decline in Ukraine was one of the highest. As a result, revenues in Ukraine decreased by 21.7% compared to the 1st quarter of 2021. The revenues obtained on the Group’s largest market so far – Russia decreased by 24.6% in the 1st quarter of 2022 compared to the corresponding period of 2021. On the other hand, the Company was able to significantly increase its sales in markets that were not directly affected by the war in Ukraine, such as e.g. Kazakhstan, which is currently the Group’s largest market. The countries with the highest increase in sales in Q1 2022 were: Georgia – increase by 52.0% Kazakhstan – increase by 42.1% Azerbaijan – increase by 28.0% Slovakia – increase by 15.7%. Poland recorded an increase in revenues in the first quarter of 2022 by 2% compared to the first quarter of 2021.
Revenue structure – Top 10 countries in Q1 2022 and Q1 2021
(in thousand USD)

Q1 2022
Q1 2021

Country
Sale
Country
Sale

1. Kazakhstan 125.201 Russia 123,515 2. Russia 93,131 Ukraine 98,858 3. Ukraine 77,431 Kazakhstan 88,092 4. United Arab Emirates 62,817 United Arab Emirates 57,694 5. Slovakia 54,689 Slovakia 47,288 6. Belarus 33,339 Belarus 41,952 7. Czech Republic 25,486 Czech Republic 24,731 8. Poland 22,954 The Netherlands 24,726 9. Azerbaijan 17,560 Poland 22,430 10. Georgia 13,961 Romania 16,563

TOTAL
694,611
TOTAL
733,369

Russia and Belarus are still in the top 10 positions as sales in these markets were very high before the outbreak of the war.
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