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Asbis Group


ASBIS - the expert in the field of delivery and promotion of the software and the equipment.

Competitors: 1C, Softline, Mont

1100 employees in 2015


+ Asbis Group (Asbis)

ASBISc Enterprises PLC (WSE: ASB) – the international holding which specializes in distribution of products and solutions based on information and communication technologies, from world leaders of the industry, including the companies: Acer, AMD, Apple, Dell, Intel, Lenovo, Microsoft, Samsung, Seagate, Toshiba, WD. The headquarters of ASBIS is in Cyprus in the city of Limassol. Official representations – are located in the territory of 24 countries of Europe, the Middle East and Africa. The staff of holding exceeds 1.100 people, in the database – over 30.000 active clients in more, than 60 countries of the world.

Performance Indicators

2018: Growth of revenue by 39% to $2.07 billion; Russia brings most of all income

In 2018 Asbis gained $2.07 billion against $1.48 billion the previous year (growth by 39%). The most part of income — 52.45% or $1.09 billion — fell on the countries of the former USSR.

The annual turnover of the company in Central and Eastern Europe reached $575.1 million (27.79% of a total indicator), in the states of the Middle East and Africa — 202.7 million (9.79%), in Western Europe — 163.7 million (7.91%).

Russia remained not just the largest market for Asbis, and fast-growing. In 2018 sales to the company in the Russian Federation jumped almost by 53% and made $369 million. The list of the states where the IT distributor earns most of all, is given below.

As for product categories, the lion share in Asbis turnover is still occupied by smartphones. Their implementation brought the companies of $799.1 million or 38.61% of all revenue at the end of 2018.

The share of processors in business of the company made 11.18%, and their annual sales — $231.3 million (growth by 20%). The three of the most profitable directions with a 7.2 percent share at the end of 2018 included notebooks. Their sales increased by 40% to $148.9 million. All computer business of the company showed rise for 59%.

Asbis earnings on accessories and multimedia devices appeared to equal $142.9 million at the end of 2018 against $79.8 million the previous year. Sales of solid state drives and servers made $84 million and $81 million respectively.

Dynamics of change of sales of different categories of products at Asbis
Dynamics of change of sales of different categories of products at Asbis

In 2018 Asbis delivered hard drives for the amount of $132.4 million that for 6% exceeds an indicator of year prescription. Implementation of the software increased by 0.4% relatively 2017.

2018 Asbis completed with net profit in the amount of $12 million whereas this profit was measured in the 2017th by $6.9 million So growth by 74% took place. The company notes that its income in 2018 became record.[1]

Business in Russia

For 2011 ASBIS LLC is the authorized distributor of Microsoft, ABBYY, Dr.Web, AVG, Toshiba, Dell, Lenovo, MSI, AOC, Belkin, Prestigio and Canyon and also the official partner of ESET and Kaspersky Lab. Enters into the international holding ASBIS Group. 

ASBIS in Russia is provided by local offices in Moscow, St. Petersburg, Voronezh, Rostov-on-Don, Kazan, Yekaterinburg, Novosibirsk, Nizhny Novgorod, Samara, Ufa, Yaroslavl and Saratov. The company services more than 3000 partners based on 9 regional warehouses. In the Russian division more than 200 employees, including 50 sales managers work.

The CEO on work with partners of Asbis in Russia Alexey Krutitsky connects growth of business of the company in the first quarter 2011 with a country exit from crisis. Revenue main growth drivers in Russia he calls products which the company sells under own brand – Prestigio. The line includes navigators, e-books and tablets.

Krutitsky at the end of year expected growth of revenue in Russia for 30% against the background of the general growth of IT market in 10% (May, 2011).


2017: Russia became the most profitable market

In 2017 financial year revenue of Asbis Group made nearly $1.5 billion, having increased by 30.5% of relative previous year that in the company connected with high rates in the CIS countries, Central and Eastern Europe. Net profit raised from $4.6 million to $6.9 million.

The Russian market became the most profitable for Asbis. For 2017 reporting year revenue made $241.72 million there that is one third more, than the previous year. In 2016 first place on turnover was won by the market of Slovakia, and a year later it fell by the third place with result to $170.92 million. Ukraine where the IT distributor earned $211.67 million rose by the second position.

Revenues of Asbis over the countries
Revenues of Asbis over the countries

The five of the countries with the greatest annual revenues included Kazakhstan and the UAE where Asbis received $147.5 million and $113.27 million respectively.

Among products the greatest revenue still arrives from deliveries of smartphones. In 2017 it was talked of $421.16 million that corresponded to 28.4% in the total turnover of the company. Sale of processors reached $192.81 million or 13% in total sales.

The share of sales returns of hard drives made 8.45% ($125.49 million), from notebooks — 7.2% ($106.7 million), from solid state drives — 4.7% ($69.68 million), from tablet computers — 4.1% ($61.19 million). Deliveries of the software brought to Asbis about $47.57 million, i.e. about 3.2% of all revenue.

The company noted fast-growing sales of motherboards and video cards (growth by 215% in 2017), peripheral equipment (+30.85%), memory modules (+89.37%), accessories and multimedia devices (+47.21%) and products based on a flash memory (+24.71%).

Asbis increased sales of smartphones for 78%, and tablet business showed growth by 32.9%. The worst dynamics is recorded in the market of hard drives, however even the positive indicator (+1.29%) is registered here.[2]

2016: The Russian market became almost the largest for the company

In 2016 Russia became practically the largest market for Asbis though revenues of the company it was reduced there, as well as total.

For the 12-month period which end fell on December 31, 2016 revenue of Asbis made $1.14 billion that is 3.7% less, than the previous year. Net profit reached $4.6 million  against $17.2 million losses in the 2015th.

Profit before tax, percent, wear and depreciation (EBITDA) was equal to $22.4 million. In 2015 the loss with the similar amendment in the amount of $482 thousand took place.

Dynamics of change of revenues of Asbis from sales of processors, hard drives, software and notebooks, data of the company from the first quarter 2015 on the fourth quarter of the 2016th
Dynamics of change of revenues of Asbis from sales of processors, hard drives, software and notebooks, data of the company from the first quarter 2015 on the fourth quarter of the 2016th

In 2016 Asbis earned about $181.2 million in Russia that it is a little less, than in Slovakia ($181.4 million). The Russian market was the largest for the company in 2014, but then two years Slovakia was in the lead. In the fourth quarter 2016 Russia returned on the first position in the list of the largest markets of the distributor. At the end of 2016 Asbis turnover in the Russian Federation was reduced by 5%.

Revenues of the company in Ukraine jumped up from 49 to 118.4 million dollars that allowed the country to enter into the three largest from the point of view of Asbis business volume. The five also included the UAE ($118.2 million revenue in 2016) and Kazakhstan ($75.2 million).

Smartphones which sales in 2016 were measured $236.7 million that corresponds to 20.8% in a total turnover began to bring most of all money of Asbis. In 2015 processors were the leading category, in the 2016th they provided the company with revenue in the amount of $205.3 million. The third largest business — the deliveries of hard drives which made about $124 million in a year.

Shares of notebooks, the software and tablets in Asbis revenue for 2016 equaled 8.4%, 4.56% and 4.05% respectively.

We continue to undertake measures for building of income in all markets of presence, generally due to increase in number of products in our portfolio and penetrations in the markets which were weak, said in the financial statement of Asbis in recent years. — It became possible because Asbis remains the most preferable distributor for many producers. The main and good example is Apple which entrusted Asbis distribution of iPhone in Ukraine, in Belarus and Kazakhstan.[3]


Decline of revenue by 25%

On February 26, 2016 Asbis Enterprises published financial results for last year. The company went "to minus", and revenue was reduced almost by a quarter in many respects because of problems in the Russian and Ukrainian markets.

In 2015 sales of Asbis were measured by $1.18 billion against $1.55 billion the previous year. Net losses reached $17.2 million whereas in 2014 net profit in the amount of $979 thousand took place. In October-December profit reached $2 million that is the best indicator among all quarters 2015.

Asbis revenue in Russia fell to a third
Asbis revenue in Russia fell to a third

The annual loss before tax, percent, wear and depreciation (EBITDA) made $482 thousand. The company notes that these monetary losses turned out to be consequence of the unsuccessful first half of the year as in the third quarter the IT distributor returned to the profit of EBITDA.

In the Russian market of sale Asbis dropped by 33% in 2015 in comparison with the 2014th — to $190.7 million. In Ukraine revenue was reduced during this time even stronger — by 43% to $48.5 million. Recession in both markets is in many respects connected with a problem economic situation there, explained in the company.

In 2014 Russia was the most profitable market for Asbis (revenue — $284.4 million), but a year later Slovakia where turnover of the company grew by 5% to $250.8 million became like that.

Most strongly in 2015 at Asbis sales of mobile devices and notebooks fell. In a case with the last recession was 36% to $108.5 million. Sale of smartphones and tablets decreased by 35% and 66% respectively — to $199 million and $73.9 million.

In 2015 the greatest sales growth in a product portfolio of the distributor was shown by servers (for 14%) and display products (for 7.4%).

Investors reacted to the published financial statement Asbis negatively: On February 26, 2016 stocks of the company at the exchange in Warsaw fell in price more than for 16%.[4]

The first quarter 2015: decline of revenue by 17.7%

On May 7, 2015 Asbis Enterprises published financial performance of the activity in the first quarter 2015. Sales to the company dropped by 17.7% because of crisis in Russia and in Ukraine.

According to promulgated data, in January-March, 2015 revenue of Asbis made $281.8 million against $342.4 million the previous year. Net loss at the same time grew by 4 times — with $3.4 million in the first quarter of 2014 to $12.4 million a year later.

War in Ukraine brought down Asbis sales

The indicator of EBITDA at Asbis turned out negative (nearly $8 million) whereas the previous year the positive value in $3.7 million took place. The operating profit in $3 million got in the first quarter 2014 was replaced by an operating loss in the amount of $8.6 million according to the results of the same period of the 2015th.

"We prepared for higher quarter sales. However because of weakness of the market many clients postponed new orders, getting rid at the same time of old stocks. It led to drop in sales and a gross profit. Decrease in the selling prices also promoted this recession. Besides, our results were undermined by the losses connected with warranty obligations" — the CEO of Asbis Sergey Kostevich said.

From the regional point of view the Russian and Ukrainian markets where revenue of the company for the reporting period was reduced by 54% and 70% respectively became the main responsible for financial recession of Asbis — to $33.6 million and $6.8 million Besides, for 66% sales fell in Bulgaria, for 61% — Belarus, for 41% — in the Czech Republic. Kazakhstan (+173%), Poland (+73%) and the UAE (13%) became leaders in growth rates of turnover of the IT distributor.

According to Sergey Kostevich, the weakness of the markets of the CIS countries will remain until the end of 2015, however the company predicts resuming of growth of revenue and margin in the second quarter. Following this purpose, Asbis changed plans for deliveries of products, took measures for permission of warranty claims and reviewed policy of credit risks, the head of the company added.[5]

Closing of office in Germany

In August, 2015 it became known that Asbis liquidated the division of ASBIS DE GmbH in Germany, for reduction of administrative expenses. Work in the German market will be coordinated from the central office of the company. It is planned that closing of division will not influence work of Asbis in Germany[6] in any way].

2014: Fall of profit by 13 times

At the end of February, 2015 Asbis Enterprises published the financial statement for the fourth quarter and all 2014. The quarterly net profit of the IT distributor grew despite crisis times which Russia and Ukraine have (some of the largest markets for the company), however the annual income was reduced almost by 13 times.[7]

In October-December, 2014 the net profit of Asbis after payment of taxes reached $5.31 million against $4.95 million the previous year and $494 thousand in the third quarter of the 2014th. Revenue decreased by 20% year on year to $458.6 million, however in comparison with the third quarter when the company gained $388.7 million, there was a notable financial rise.

EBITDA at Asbis made $7.6 million in the fourth quarter of 2014 whereas for the same period of previous year the indicator was measured a little more than $12 million, in the third quarter 2014 — $5.1 million.

"Taking into account the current severe market conditions we consider excellent achievement our results for the fourth quarter 2014. We not only got big net profit, but also successfully cut down expenses. But the most important is that we improved cash flows from operating activities more than for $70 million and closed year with a considerable gain of cash" — the CEO of Asbis Sergey Kostevich noted.

For all 2014 Asbis received revenue in the amount of $1.55 billion that falls short nearly 20% of result of year prescription. Net profit after payment of taxes decreased by 92% to $979 thousand. The indicator of EBITDA was reduced almost twice, having made $19.1 million.

Fall of revenues of Asbis turned out to be consequence of a crisis situation in the Russian and Ukrainian markets. In these conditions the company decided to continue cost reduction, predicting difficult 2015. According to Sergey Kostevich, the situation in the markets of Russia and Ukraine will hardly improve until the end of summer of 2015 therefore the company decided to focus on other regions, such as Great Britain, Poland and Kazakhstan where Asbis sales in the fourth quarter grew 2014 by 184%, 146% and 91% respectively year on year.

Quarter revenue of the distributor in Russia was reduced by 41%, having made $73.7 million. If by the end of 2013 the Russian market was the most profitable for Asbis, then a year later first place was won by Slovakia. To this country it is also going to pay special attention in 2015.


1st quarter: Russia and Ukraine - a business core

Asbis published the financial statement for the 1st quarter 2011 according to which consolidated revenues of the company for the reporting period were $349 million, and its growth – 5.63%. The indicator of EBITDA grew by 76%. Net profit grew by 310%, having been $829 thousand.

The main share of deliveries (28.79%) was made by notebooks, having brought the companies of $84.6 million. They are followed by processors (23.75%), hard drives (12.4%) and software (10.85%).

Growth of indicators in the company is connected with the new strategy assuming optimization of internal processes of the company and also updating and a basic course on improvement of indicators of profitability at all levels. "Growth of revenue was generally reached at the expense of Russia while in other regions of sale remained stable", - Sergey Kostevich, the CEO of Asbis says.

The greatest revenue of the company was generated by the countries of the former USSR - $145 million. In Central and Eastern Europe and also the Baltic States the company gained $112.9 million[8].

The countries Top-10 on Asbis revenue ($ one thousand)

  1 quarter 2011 1 quarter 2010
  Country Sales Country Sales
1. Russia 82,364 Russia 68,412
2. Ukraine 35,651 Slovakia 37,841
3. Slovakia 31,854 Ukraine 36,475
4. UAE 19,513 UAE 18,360
5. Czech Republic 19,182 Czech Republic 16,802
6. Saudi Arabia 14,082 Belarus 11,526
7. Belarus 13,877 Netherlands 11,006
8. Kazakhstan 10,534 Saudi Arabia 9,798
9. Netherlands 9,163 Turkey 8,608
10. Romania 8,854 Romania 8,041
11. Others 104,545 Others 104,126
  In total 349,619 In total 330,995

Source: Asbis

Asbis notes that the countries of the former Union traditionally generate the companies the greatest revenue, and it did not occur only temporarily in 2009 when the countries of Central and Eastern Europe to a lesser extent suffered from a world financial crisis.

Financial results of year: Revenue of $1.48 billion (+3%)

At the end of 2011 revenue of Asbis increased in relation to an indicator of 2010 by 3.28% and made $1.48 billion (against the predicted $1.6-1.65 billion). The net profit of holding showed significant growth — almost for 335% in comparison with an indicator of 2010, having been $5.66 million (against $1.3 million the previous year) and, thus, for 25.78% having exceeded forecasts of specialists of Asbis.

Operating profit of the company for reporting year reached the level of $15.66 million, for 66% having exceeded an indicator of 2010 ($9.44 million). In turn, the indicator of EBITDA increased at the end of year by 50.7% — from $12.4 million in 2010 to $18.7 million in 2011.

Net profit for the fourth quarter 2011 reached a point of $8.27 million, having increased almost by 332% in comparison with an indicator of 2010 ($1.914 million) whereas the indicator of revenue decreased by 1.45% to $470.16 million. Operating profit for a reporting quarter more than doubled, having reached a point of $10.65 million against $4.53 million in the same period of 2010 (+135.03%). The quarter indicator of EBITDA also increased in a year more, than twice (+115.18%) — from $5.33 million in 2010 to $11.46 million in 2011.

1995: Transfer of the headquarters from Belarus to Cyprus

In 1995 the company founded holding on Cyprus where the headquarters ran over it.

1990: Foundation of the company in Belarus

Asbis was created in 1990 in Belarus.