ASBIS Group

ASBISc Enterprises PLC (WSE: ASB) is an international holding that specializes in the distribution of products and solutions based on information and communication technologies from world industry leaders, including companies Acer AMD Apple Dell Intel:,,,,,,,,,,. Lenovo Microsoft Samsung Seagate Toshiba WD

Offices

The ASBIS is headquartered in Cyprus in the city of Limassol. Official offices are located in 27 countries of Europe, the Middle East and Africa. The staff of the holding exceeds 2,000 people, in the database - over 20,000 active customers in more than 56 countries of the world (data for 2022).^[1]

Specialization and areas of activity

ASBIS is a one-stop-shop provider of IT solutions, products and services. The company specializes in VAD distribution, B2B solutions, IoT, AI and classic distribution of information and communication products from global manufacturers (data as of June 2022).

Performance indicators

2020: Revenue - $2.37 billion, net income - $36.5 million

Asbis revenue at the end of 2020 amounted to $2.37 billion, having significantly increased compared to the previous year, when sales were measured at $1.91 billion. In the ranking TAdviser100: The largest IT companies in Russia 2021 , Asbis took 20th place.

Most of the company's turnover still falls on the supply of smartphones - in 2020 they amounted to $688 million against $586.7 million in 2019. Processor shipments rose from $283.6 million to $390 million. The direction of accessories and multimedia added $304.8 million (or 12.9%) to Asbis revenue in 2020, laptops - $185.7 million (7.9%), hard drives - $151.1 million (6.4%), solid state drives - $87.8 million (3.7%).

Asbis financials

Tablet sales from Asbis at the end of 2020 amounted to $58.8 million, while in 2019 they amounted to almost $56 million. Revenue from desktops increased from $51.7 million to $55.4 million.

The Russian market remained the largest for Asbis - the company's revenue there in 2020 reached $434.33 million against $352.07 million a year earlier. The company's revenues in Ukraine increased from $310.76 million to $352.35 million, and Kazakhstan rose to third place in sales in the structure of the IT distributor's turnover with a result of $248.38 million at the end of 2020 against $175.02 million in 2019.

Slovakia, which in 2019 was one of the three largest markets for Asbis, a year later took fifth place ($177.06 million), skipping ahead, in addition to the mentioned countries, also the UAE. The company's revenue in Belarus for 2020 reached $147.87 million, which exceeds the one-year-old figure of $125 million. The rest of the countries brought Asbis less than $100 million each.

Asbis revenue in the countries of the former USSR increased from $1.02 billion in 2019 to $1.29 billion in 2020. In Western Europe, it rose from $127.5 million to $171.1 million.

Asbis net profit in 2020 reached $36.5 million, an increase of almost 140% compared to the previous year's profit of $15.2 million.

Asbis 2020 Financial Statement

Business in Russia

2022: Reduction in revenue in Russia by 78.3% - 9,221 million rubles

At the end of 2022, the revenue of ASBIS in Russia decreased 78.3% - up to 9,221 million rubles. The revenue indicator was translated into rubles at the weighted average dollar exchange rate. In the ranking "TAdviser100: The largest IT companies in Russia 2023," such an indicator allowed the company to take 58th place.

2021: Revenue growth in Russia by 35.3% to RUB 42,396 million

At the end of 2021, the revenue of Asbis Group Russia amounted to 42,396 million rubles. (Revenue translated rubles into at the weighted average rate), dollar an increase of 35.3% compared to 2020, which allowed it to take 13th place in Ranking TAdviser100: The largest IT companies in Russia 2022.

2020: Revenue in Russia - 31,336 million rubles

At the end of 2020, Asbis's revenue in Russia amounted to 31,336 million rubles.

History

2019: Revenue decline of 7%; Russia remained among the leaders in sales

At the end of 2019, Asbis registered revenue of $1.91 billion, which is 7% less than a year ago. The company still earns the most in the countries of the former USSR: there in 2019 sales amounted to $1.02 billion, down 6% compared to 2018.

Even stronger - by 12% - the revenue in Central and Eastern Europe sank (to $506 million). And the deepest decline occurred in Western Europe, where the company's turnover decreased by 22%, to $127.5 million. In the Middle East and Africa markets, Asbis generated about $217.9 million in 2019, up 7% from a year earlier.

Asbis financials

As for individual countries, Russia remains the largest market for Asbis. At the end of 2019, the company raised $352.1 million in this country against $369 million in 2018. Sales in Ukraine reached $310.8 million, an increase from $297.9 million a year ago. Slovakia entered the top three most profitable countries for Asbis with an annual turnover of $177.9 million.

Asbis still makes the most money on smartphones, but their share in total revenue decreased from 38.6% in 2018 to 30.6% a year later. Deliveries of such devices added about $586.7 million to the company's revenue at the end of 2019.

Earnings on processor distribution in 2019 turned out to be $283.6 million against $231.3 million a year earlier. Accessories and various multimedia equipment provided Asbis with revenues of $205.7 million, or 10.7% of the total. Laptop sales amounted to $139.6 million, hard drives - $122.5 million, servers - $86.7 million, SSD drives - $77.6 million, network products - $58.1 million, tablets - almost $56 million, software - $52.9 million.

Asbis net profit in 2019 was $15.2 million against $12 million in profit a year earlier.Financial Statement Asbis 2019

2018: Revenue growth of 39% to $2.07 billion; Russia brings the most income

In 2018, Asbis raised $2.07 billion against $1.48 billion a year earlier (up 39%). Most of the income - 52.45% or $1.09 billion - fell on the countries of the former USSR.

The company's annual turnover in Central and Eastern Europe reached $575.1 million (27.79% of the total), in 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, but a fast-growing one. In 2018, the company's sales in the Russian Federation jumped by almost 53% and amounted to $369 million. The list of countries where the IT distributor earns the most is below.

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

The share of processors in the company's business amounted to 11.18%, and their annual sales - $231.3 million (an increase of 20%). The top three most profitable areas with a 7.2 percent share in 2018 included laptops. Their sales increased by 40% to $148.9 million. The company's entire computer business showed a 59% rise.

Asbis's earnings on accessories and multimedia devices turned out to be $142.9 million at the end of 2018 against $79.8 million a year earlier. Sales of solid-state drives and servers amounted to $84 million and $81 million, respectively.

Dynamics of sales of various product categories at Asbis

In 2018, Asbis delivered hard drives worth $132.4 million, 6% higher than a year ago. Software implementation increased by 0.4% compared to 2017.

Asbis completed 2018 with a net profit of $12 million, while in 2017 this profit was measured at $6.9 million. That is, there was an increase of 74%. The company notes that its revenues in 2018 became record.^[2]

2017: Russia becomes the most profitable market

In fiscal 2017, Asbis Group's revenue amounted to almost $1.5 billion, an increase of 30.5% compared to the previous year, which the company associated with high performance in the CIS countries, Central and Eastern Europe. Net profit rose from $4.6 million to $6.9 million.

As of 2017, official offices are located in 24 countries in Europe, the Middle East and Africa. The holding's staff exceeded 1300 people, in the database - over 30,000 active clients in more than 60 countries of the world.

The Russian market has become the most profitable for Asbis. For the 2017 reporting year, revenue there amounted to $241.72 million, which is a third more than a year earlier. In 2016, the first place in terms of turnover was occupied by the market, and Slovakia a year later it dropped to third place with a result of $170.92 million. The second position rose, Ukraine where the IT distributor earned $211.67 million.

Asbis revenues by country

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

Among products, the largest revenue still comes from smartphone shipments. In 2017, it was about $421.16 million, which corresponded to 28.4% in the total turnover of the company. Processor sales reached $192.81 million or 13% in total revenue.

The share of revenues from sales of hard drives was 8.45% ($125.49 million), from laptops - 7.2% ($106.7 million), from solid-state drives - 4.7% ($69.68 million), from tablet computers - 4.1% ($61.19 million). Software deliveries brought Asbis about $47.57 million, that is, approximately 3.2% of all revenue.

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

Asbis increased smartphone sales by 78%, and the tablet business showed an increase of 32.9%. The worst dynamics was recorded in the hard drive market, but even here a positive indicator was recorded (+ 1.29^[3]

2016

The Russian market has become almost the largest for the company

In 2016, Russia became almost the largest market for Asbis, although the company's revenues there decreased, as did the total.

For the 12-month period, which ended on December 31, 2016, Asbis's revenue amounted to $1.14 billion, which is 3.7% less than a year earlier. Net profit reached $4.6 million against $17.2 million in losses in 2015.

Earnings before taxes, interest, depreciation and amortisation (EBITDA) were $22.4 million. In 2015, there was a loss with a similar correction in the amount of $482 thousand.

Dynamics of Asbis revenue from sales of processors, hard drives, software and laptops, company data for the period from the first quarter of 2015 to the fourth quarter of 2016

In 2016, Asbis earned about $181.2 million in Russia, which is slightly less than in Slovakia ($181.4 million). The Russian market was the largest for the company in 2014, but then Slovakia led for two years. In the fourth quarter of 2016, Russia returned to the first position in the list of the largest distributor markets. At the end of 2016, Asbis's turnover in the Russian Federation decreased by 5%.

The company's revenues in Ukraine jumped from 49 to 118.4 million dollars, which allowed the country to enter the top three in terms of Asbis business volume. The top five also included the UAE ($118.2 million in revenue in 2016) and Kazakhstan ($75.2 million).

Asbis began to bring the most money, sales of smartphones which in 2016 were measured at $236.7 million, which corresponds to 20.8% in total turnover. In 2015, the leading category was processors, in 2016 they provided the company with revenue in the amount of $205.3 million. The third largest business is the supply of hard drives, which amounted to about $124 million for the year.

The shares of laptops, software and tablets in Asbis revenue for 2016 were 8.4%, 4.56% and 4.05%, respectively.

We continue to take measures to build revenue across all markets of presence, mainly by increasing the number of products in our portfolio and penetration in markets that have been weak over recent years, the Asbis said in its financial statement. - This became possible because Asbis remains the most preferred distributor for many manufacturers. The main and good example is Apple, which entrusted Asbis with the distribution of iPhones in Ukraine, Belarus and Kazakhstan.[4]

Distribution Agreement with Hancom

In November 2016, Hancom signed a partnership with IT solutions distributor Asbis^[5]. It assumes that Hancom will begin supplying Asbis with its office product for the Thinkfree Office NEO PC in December, and later plans to supply its products to the business and public sector. Read more here.

2015

25% drop in revenue

On February 26, 2016, Asbis Enterprises released its financial results for the past year. The company went "negative," and revenue decreased by almost a quarter largely due to problems in the Russian and Ukrainian markets.

In 2015, Asbis sales were measured at $1.18 billion against $1.55 billion a year earlier. Net losses reached $17.2 million, while in 2014 there was a net profit of $979 thousand. In October-December, profit reached $2 million, which is the best indicator of all quarters of 2015.

Asbis revenue in Russia fell by a third

Annual loss before taxes, interest, depreciation and amortization (EBITDA) amounted to $482 thousand. The company notes that these cash losses were the result of an unsuccessful first half of the year, since in the third quarter the IT distributor returned to EBITDA profit.

On the Russian market, Asbis sales fell by 33% in 2015 compared to 2014 - to $190.7 million. In Ukraine, revenue decreased even more during this time - by 43% to $48.5 million. The decline in both markets is largely due to the problematic economic situation there, the company explained.

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

Asbis saw the biggest drop in mobile and laptop sales in 2015. In the case of the latter, the decline amounted to 36% to $108.5 million. Sales of smartphones and tablets decreased by 35% and 66%, respectively - to $199 million and $73.9 million.

In 2015, the largest growth in sales in the distributor's product portfolio was shown by servers (by 14%) and display products (by 7.4%).

Investors reacted negatively to the published financial report of Asbis: on February 26, 2016, the company's shares on the Warsaw stock exchange fell in price by more than 16%.^[6]

Q1 2015: 17.7% revenue drop

On May 7, 2015, Asbis Enterprises published its financial performance in the first quarter of 2015. The company's sales fell 17.7% due to the crisis in Russia and Ukraine.

According to the published data, in January-March 2015, Asbis revenue amounted to $281.8 million against $342.4 million a year earlier. At the same time, the net loss grew 4 times - from $3.4 million in the first quarter of 2014 to $12.4 million a year later.

The war in Ukraine brought down Asbis sales

Asbis' EBITDA was negative (almost $8 million), while a year earlier there was a positive value of $3.7 million. Operating profit of $3 million, received in the first quarter of 2014, was replaced by an operating loss of $8.6 million in the same period in 2015.

We were preparing for higher quarterly sales. However, due to the weakness of the market, many customers postponed new orders, while getting rid of old stocks. This led to a drop in sales and gross margin. The decline in sales prices also contributed to this decline. In addition, our results were undermined by losses related to warranty obligations, "said Asbis CEO Sergey Kostevich

From a regional point of view, the main culprits of the Asbis financial downturn were the Russian and Ukrainian markets, where the company's revenue for the reporting period decreased by 54% and 70%, respectively - to $33.6 million and $6.8 million. In addition, sales in Bulgaria fell by 66%, by 61%, Belarus by 41%. The leaders in Czech Republic terms of growth in the turnover of the IT distributor were (+ Kazakhstan 173%), (+ Poland 73%) and the United Arab Emirates (13%).

According to Sergei Kostevich, the weakness of the CIS markets will remain until the end of 2015, but the company predicts a resumption of revenue and margin growth in the second quarter. Following this goal, Asbis changed plans for the supply of products, took measures to resolve warranty claims and revised its credit risk policy, the head of the company added.^[7]

Closing office in Germany

In August 2015, it became known that Asbis liquidated its ASBIS DE GmbH division in Germany, to reduce administrative costs. Work in the German market will be coordinated from the company's central office. It is planned that the closure of the division will not affect the work of Asbis in Germany^[8].

2014: 13-fold profit drop

In late February 2015, Asbis Enterprises published its fourth quarter and all of 2014 financial report. The quarterly net profit of the IT distributor increased despite the crisis times experienced by Russia and Ukraine (one of the largest markets for the company), but annual income decreased by almost 13 times.^[9]

In October-December 2014, Asbis net profit after taxes reached $5.31 million against $4.95 million a year earlier and $494 thousand in the third quarter of 2014. Revenue decreased by 20% on an annualized basis to $458.6 million, but compared to the third quarter, when the company gained $388.7 million, there was a tangible financial recovery.

Asbis EBITDA amounted to $7.6 million in the fourth quarter of 2014, while for the same period of the previous year the figure was measured at just over $12 million, in the third quarter of 2014 - $5.1 million.

"Taking into account the current difficult market conditions, we consider our results for the fourth quarter of 2014 to be an excellent achievement. Not only did we make a big net profit, but we successfully cut costs. But most importantly, we improved cash flows from operating activities by more than $70 million and closed the year with a significant increase in cash, "said Asbis CEO Sergei Kostevich

For the entire 2014, Asbis received revenue of $1.55 billion, which falls short of almost 20% of the result of a year ago. Net profit after taxes decreased by 92% to $979 thousand. EBITDA almost halved to $19.1 million.

The fall in Asbis revenues was the result of the crisis in the Russian and Ukrainian markets. Under these conditions, the company decided to continue cutting costs, predicting a difficult 2015. According to Sergey Kostevich, the situation in the markets of Russia and Ukraine is unlikely to improve until the end of the summer of 2015, so the company decided to focus on other regions, such as the UK, Poland and Kazakhstan, where Asbis sales in the fourth quarter of 2014 increased by 184%, 146% and 91%, respectively, on an annualized basis.

The distributor's quarterly revenue in Russia decreased by 41%, amounting to $73.7 million. If by the end of 2013 the Russian market was the most profitable for Asbis, then a year later Slovakia took first place. This country is also planned to pay increased attention in 2015.

2011

ASBIS is an expert in the supply and promotion of software and hardware.

1st quarter: Russia and Ukraine - core of business

Asbis issued its Q1 2011 Financial Report, according to which the company's total revenue for the reporting period was $349 million and its growth was 5.63%. EBITDA rose 76%. Net profit increased by 310%, amounting to $829 thousand.

The bulk of deliveries (28.79%) were laptops, bringing the company $84.6 million. They are followed by processors (23.75%), hard drives (12.4%) and software (10.85%).

The growth of indicators in the company is associated with a new strategy, which involves optimizing the internal processes of the company, as well as updating and the main course to improve profitability indicators at all levels. "Revenue growth was mainly achieved at the expense of Russia, while in other regions sales remained stable," says Sergey Kostevich, CEO of Asbis.

The largest revenue of the company was brought by the countries of the former USSR - $145 million. In Central and Eastern Europe, as well as the Baltic countries, the company raised $112.9 million^[10].

Top 10 countries by Asbis revenue ($ thousand)

Source: Asbis

Asbis notes that the countries of the former Union traditionally bring the largest revenues to the company, and this did not happen only temporarily in 2009, when the countries of Central and Eastern Europe were less affected by the global financial crisis.

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

At the end of 2011, Asbis revenue increased by 3.28% compared to 2010 and amounted to $1.48 billion (against the projected $1.6-1.65 billion). The holding's net profit showed significant growth - by almost 335% compared to 2010, amounting to $5.66 million (against $1.3 million a year earlier) and, thus, by 25.78% exceeding the forecasts of Asbis specialists.

The company's operating profit for the reporting year reached $15.66 million, 66% higher than in 2010 ($9.44 million). In turn, EBITDA increased by 50.7% year-on-year - from $12.4 million in 2010 to $18.7 million in 2011.

Net profit for the fourth quarter of 2011 reached $8.27 million, an increase of almost 332% compared to 2010 ($1.914 million), while revenue decreased by 1.45% to $470.16 million. Operating profit for the reporting quarter more than doubled, reaching $10.65 million against $4.53 million in the same period in 2010 (+ 135.03%). Quarterly EBITDA also increased more than 2 times over the year (+ 115.18%) - from $5.33 million in 2010 to $11.46 million in 2011.

For 2011, in Russia, ASBIS LLC is an authorized distributor of Microsoft, ABBYY, Dr.Web, AVG, Toshiba, Dell, Lenovo, MSI, AOC, Belkin, Prestigio and Canyon, as well as an official partner of ESET and Kaspersky Lab. Included in the international holding ASBIS Group.

ASBIS Russia is represented by local offices in,, To Moscow,, St. Petersburg,, Voronezh,, Rostov-on-Don,,,, and Kazan Yekaterinburg Novosibirsk Nizhny Novgorod To Samara To Ufa Saratov. Yaroslavl The company serves more than 3,000 partners based on 9 regional warehouses. The Russian division employs more than 200 employees, including 50 sales managers.

Alexey Krutitsky, Asbis Partner Director General for Russia, attributes the growth of the company's business in the first quarter of 2011 to the country's recovery from the crisis. He calls the main drivers of revenue growth in Russia the products that the company sells under its own brand - Prestigio. The lineup includes navigators, e-books and tablets.

According to the results of the year, Krutitsky expected revenue growth in Russia by 30% against the background of the overall growth of the IT market of 10% (May 2011).

1995: Headquarters transfer from Belarus to Cyprus

In 1995, the company founded a holding in Cyprus, where its headquarters moved.

1990: Founding a company in Belarus

Asbis was created in 1990 in Belarus.

Notes