Limassol-based ASBIS expects record-breaking profitability this year

Limassol-based ASBISc Enterprises Plc expects sales revenues of between $3.0 billion and $3.2 billion for 2023, along with a net profit after tax of $78m-$82m.

The leading Value Add Distributor, developer, and provider of ICT, IoT products, solutions, and services to the markets of Europe, the Middle East, and Africa (EMEA), has published its financial forecast, and it looks like 2023 may be a record year in the Group's history, especially at the profit level.

Forecasted values result from the Company's strategy including – but not limited to – a greater focus on computing and consumer electronic products, including our own brands, thru Retail, e-Tail and SMB routes to market as well as our solutions for Data Centres to medium and large enterprises in the geo where we operate.

Costas Tziamalis, Deputy CEO of ASBIS Group, commented: “After a difficult, but very good 2022 for us, ASBIS entered 2023 very strong, with plans for further growth and development. Thanks to the consistent implementation of our strategy and great determination in action, we have turned the difficult past year into a kind of springboard, thanks to which we will also grow in the coming years. We forecast that we will again exceed USD 3 billion in revenue, and our profits will be even higher than a year ago. We have already started this very intense year for us, in which we are developing not only many new markets, but also further strengthening the development of our own brands, including the division related to robotics - ASBIS Robotic Solutions. We are convinced that we have all the right ammunition in our hands, which we will use with great commitment this year, taking ASBIS to new heights.”

According to the forecast, ASBIS is not expecting an additional attack on any other country by Russia in the territories the Group operates, or any attempts by Russia to take over the whole or parts of Ukraine,

It also anticipates no further sanctions on any other countries where the Group operates, nor does its expect any factories to shut down (Covid-related) and lead to significant disruption in the supply chain. “The political situation in the non-conflict markets, will not deteriorate and there will be stability in the financial environment of these markets,” it said, and added that it does not expect any significant decrease in demand or supply for IT products.

“The financial environment in our major markets of Kazakhstan, United Arab Emirates, and Slovakia will not deteriorate, as compared to 2022,” while, “there will not be any major devaluations of the currencies in our major markets, and therefore it will not negatively affect demand in those markets.”

It also assumes that there will be no significant disturbance in the general economic environment in other markets where the Company operates, no significant decrease in sales of higher-margin products and solutions in both Value-Added Distribution (VAD) and private-label products, and that competition in all major segments will remain similar to that of 2022, with no new significant market entrants.

The projections are also subject to ASBIS continuing to enjoy the same terms by its key suppliers, and the smartphones segment not deteriorating more than 10% compared to FY 2022 in the markets the Company operates.

It also assumes that “there will not be any further increases on the cost of financing in all major markets the Group operates” and that “there will not be significant changes in consumer behaviour” or that “any new technology marketed to which the group does not have access on its distribution.”

About ASBISc Enterprises Plc

ASBIS Group is a leading Value Add Distributor, developer and provider of ICT, IoT products, solutions, and services to the markets of Europe, the Middle East, and Africa (EMEA) with local operations in Central and Eastern Europe, the Baltic republics, the former Soviet Union, the Middle East and North Africa.

The business of ASBIS is based on three pillars:

1. Distribution of hardware and software for Client Computing and Data Centres, consumer electronics thru:
   1. Retail chains and e-tailers
   2. Resellers to small and medium business
   3. Large enterprises.
2. Full stack in creation of world class products. From scientific research and development to design and engineering, firmware and software, production and marketing of IT and IoT products and solutions via own brands:
   1. Aeno (small home appliances).
   2. Canyon (smart watches, power banks, accessories for computers and mobile devices)
   3. Cron Robotics (building own solutions in the robotics segment, including cobots).
   4. Lorgar (accessories for gaming and streaming)
   5. Perenio (IoT platform, IoT routers, applications and peripherals for smart office/ home, smart health).
   6. Prestigio (smart devices and accessories, innovative solutions for business and education, etc.)
   7. Prestigio Solutions (innovative technological solutions for business and education)
3. Complex solutions sales projects to large enterprises via extensive networks of System Integrators and Value Add Resellers.

ASBIS was founded in 1990 in Belarus, since 1995 operates from Cyprus. Company has 2 main distribution centres in the world located in the Czech Republic and the United Arab Emirates and 2 regional distribution centres (Georgia, South Africa), subsidiaries in 28 countries, more than 2,200 employees and about, 20 000 active customers in 60 countries worldwide. In 2022, the Group delivered sales of close to USD 2.7 billion.

The Company’s stock has been listed on the Warsaw Stock Exchange since October 2007 under the ticker symbol “ASB” (ASBIS).