Asbis IT net profit falls to USD 6.1 mln in Q2 2024 from USD 11.2 mln in previous year

"Taking into consideration an extremely difficult market environment, we assess the Group’s results for Q2 2024 and H1 2024 as successful to a good extent. In the second half of 2024 we are very positive that the trend will move again into positive and we shall be able to deliver onto our forecasted numbers," the company commented on the financial results.

"We see a positive impact from South Africa, where we started already in July much higher sales. We also very much count on Breezy – trade-in business, which have already been developing very nicely and improving our costs structure where we see that business growth is not possible," the company added.

Asbis main goal in 2024 is maintaining and strengthening their share of the main markets in the Central and Eastern Europe and CIS regions.

The group's revenue in the second quarter amounted to USD 645.9 million, down by 4.2 percent year on year.

Asbis' gross profit margin amounted to 7.97 percent, down from 8.04 percent in the second quarter of 2023.

The group's EBITDA fell to USD 17.5 million versus USD 23.2 million a year prior. EBIT amounted to USD 15.3 million, down 28.1 percent from USD 21.3 million in the second quarter of 2023.

Asbis' net profit amounted to USD 6.1 million, down from USD 11.2 million in the prior year's period.

Analysts surveyed by PAP Biznes expected a revenue of USD 646 to 698 million, EBITDA at a range of USD 19.5 to 21.3 million and a net profit of USD 8.6 to 9.8 million.

Asbis' reported a revenue of USD 1.3591 billion (down 2.7 percent year on year) and a net profit after taxation of USD 20.1 million (down from USD 28.6 million a year prior) in the first half of the year.

"Throughout the years, Q2 is historically the weakest quarter in the IT industry. Having delivered a solid first quarter, we have managed to reach satisfactory levels of revenues and profitability in Q2 despite all the challenges we faced in multiple markets of ours especially Kazakhstan and Ukraine," the company wrote.

"In Kazakhstan the main issue the Company has faced was with illicit trade of products coming from unofficial distributors and channels, while in Ukraine the intensification of hostilities has translated adversely into business operations," the company added.

The company stated that in Slovakia, the group's third largest market, the EU funds spending on IT have been completed, resulting in lower revenues.

"It worths mentioning that in several markets like Poland and other smaller markets, we have noticed an increase in our business and we are very positive for their development," the company wrote.

The company saw a strong growth in Q2 in the United Arab Emirates, Germany, Poland, Azerbaijan and the Netherlands.

In the second quarter of 2024 multiple Asbis product lines have recorded a decrease on a year-on-year basis. As a result, revenues from sale of all product lines in the first half of 2024 were lower than in the corresponding period of 2023.

pr/ mik/