CORRECTION: ELKO Group audited financial statement for 2015ELKO Group, one of the largest IT product wholesalers and IT solutions and services distributors in Eastern Europe, despite challenging market conditions in the CIS region, has announced significant profit increase, reaching 21.8 million USD (19.7 million EUR) profit in 2015.
CORRECTION: The financial results haven’t been changed, an editorial adjustments made on ELKO Group's consolidated financial statements. In addition enclosed: ELKO Group AS stand-alone audited financial statement and Statement of Directors’ Responsibility.
1–12/2015 highlights (consolidated):
-
Sales 1,264 million USD (1,139 million EUR)
-
Gross profit 58.1 million USD (52.4 million EUR)
-
Net profit 21.8 million USD (19.7 million EUR)
-
Total assets 381 million USD (350 million EUR)
-
Equity 97.8 million USD (89.9 million EUR)
The economic conditions in key regions - CIS countries continues to be unfavourable and IT sector in the respective markets has declined significantly, however ELKO Group managed to outpace the market in the CIS region and together with considerably increased operations in the CEE region ELKO Group has managed to sustain sales at the same level comparing to prior year, respectively 1,264 million USD (1,139 million EUR) comparing to 1,292 million USD (972 million EUR) in 2014. By streamlining planning procedures, applying more rigid risk management policies and improved cost management, as well as implementing effective resource management, net profit rose to 21.8 million USD (19.7 million EUR), comparing to loss of 7.1 million USD (5.4 million EUR) in 2014.
The IT market in the CIS region has decreased by up to 30% while ELKO Group sales in the region has decreased just by 14% reaching 773 million USD (696 million EUR). Due to EUR currency weakening ELKO Group’s sales in the Baltic market has drop by 6%, reaching 106 million USD (96 million EUR) which was in line with overall market decrease. ELKO Group showed substantial growth of 37% in the CEE region as the sales reached 385 million USD (347 million EUR).
To attract additional financing for company's further development and growth, the bond offering of ELKO Group was successfully completed in October, 2015. Bonds in the amount of EUR 8 million were issued with an annual interest rate of 8%. Bonds were acquired by pension and investment funds, banks and private individuals from the Baltic States and Poland. Great results of the emission affirmed that the company’s operations in IT product wholesale and IT solutions distribution business were appreciated by investment market participants.
Svens Dinsdorfs, ELKO Group CEO, comments on past year’s challenges and results: “We are pleased with success of previous year. As greatest challenge I can mention instability of local currency in relevant CIS markets. The ability to focus on continuous improvement of company's business has allowed us to reduce the impact of external factors. Although in some of ELKO’s represented markets growth in 2016 is not expected, company continues to grow, strengthening positions in existing markets, examining new markets and developing new business directions.”
In 2016 ELKO Group with its recently established business division ELKO Solutions will continue to strengthen its expertise and position in solutions sector, offering knowledge and experience in the acquisition and implementation of various technological solutions as well as continuing to expand its broadline business product portfolio.
Despite challenging market condition in the CIS region, the management of ELKO Group believes that the growth in the other markets as well as continuous development of IT solutions business in 2016 will allow to achieve similar sales and net profit as in 2015.
About ELKO Group
ELKO Group was founded in 1993 and is one of the largest IT product wholesalers and IT solutions and services distributors in Eastern Europe, now also actively expanding to Central Asian market. ELKO represents more than 120 IT vendors and sells their goods to more than 6500 retailers, local computer producers and system integrators. ELKO offers more than 20 000 product titles from the most famous vendors - Acer, Apple, Asus, Dell, HGST, Intel, Kingston, Lenovo, Microsoft, Seagate, Supermicro, Western Digital and others. At the moment, more than 700 people are employed with ELKO. ELKO Group belongs to several legal entities and investment fund Amber Trust.
Further information: www.elkogroup.com; www.solutions.elkogroup.com Kristine Saulriete
Marketing and Communication Director
ELKO Grupa AS
Phone: + 371 6709 3214
e-mail: kristine.saulriete@elkogroup.com
www.elkogroup.com
www.solutions.elkogroup.com
|