A record-breaking net profit of more than PLN 151 million and an EBITDA of PLN 231 million with sales of PLN 14 billion was generated in the financial year 2021/2022 by AB Group, the largest IT and consumer electronics distributor in Poland and the CEE region. Building on the growth markets of Poland, the Czech Republic and Slovakia as well as multidimensional diversification and the highest efficiency in the industry, allow the Management Board to achieve ambitious targets in the subsequent periods.

Selected financial results:

	Financial year 2021/22	Q2 2022 (Q4 FY21/22)
	PLN mln	Y/Y change	PLN mln	Change to Q2 2021
Revenue	14,030.8	+7%	3,198.0	+8%
EBITDA	231.4	+27%	50.7	+29%
Margin	1.6%	+0.2 pp	1.6%	+0.3 pp
Net profit	151.1	+22%	30.1	+15%
Equity (end of period)	1,143.8	+15%	1,143.8	+15%

The business model of AB Group, based on long-term distribution agreements, implies a strong competitive advantage, which, combined with geographical diversification and the highest operational efficiency in the industry, allows to realise the expected long-term increase in results. In the fourth quarter of the 2021/2022 financial year (April-June 2022 period), AB Group recorded nearly PLN 3.2 billion in revenue, growing by 8% year-on-year. Thanks to the traditional focus on the Polish, Czech and Slovak markets, with no presence in the East, and thanks to the industry’s lowest SG&A cost ratio, the EBITDA result in Q2 2022 of AB Group increased by 29% year-on-year to PLN 51 million and net profit exceeded PLN 30 million (+15% year-on-year). AB Group also achieved record results throughout the 2021/2022 financial year. The revenue exceeded PLN 14 billion for the first time in history (an increase of almost PLN 1 billion y-o-y), and EBITDA and net profit, increasing at more than 20% year-on-year, reached values of more than PLN 231 million and PLN 151 million, respectively.

– When we made our debut on the Stock Exchange in Warsaw, we had revenue of PLN 1 billion, and now it is 14 times that. We observe and anticipate the strength of the markets in which we operate. Digital transformation has already taken on a snowball dimension, so we are observing an increased demand for hardware, software and services from the consumer segment as well as from business and institutions. We have invested, among other things, in the engineering team and VAD department, in our own cloud platform, as well as in the AB Competence Centre for certification and training – these areas continue to gain in importance and support the strengthening of our market leadership position. We think and act long-term with prudence embedded in our organisational culture, so that we may grow regardless of external circumstances – says Andrzej Przybyło, President of the Management Board of AB S.A.

– The market in Poland accelerated in the second quarter, growing at a double-digit rate. We see no signs of a slowdown, instead, we are observing an increase in interest in our product range, among other things, a number of large tenders are opening up and many companies are finding opportunities to optimise costs through process automation. The area of cyber security has also gained in importance. Additionally, we have secured the availability of goods, so we not only have strong finances, but also the best logistics. This gives a good perspective for future periods– adds President Przybyło.

AB Group continues its security strategy in maintaining the availability of commercial stocks in a volatile economic and geopolitical environment.

– Commodity availability has mostly returned to normal, but the significant risk of disruption to global supply chains is still existing. In addition, we are facing the best period of the year in terms of a season, i.e. the fourth quarter. Therefore, it is so important to secure the availability of goods for our approximately 16,000 contractors.At the same time, we maintain our financial ratios at very safe levels, for instance, the value of net debt to EBITDA is at the level of 1.4 – says Grzegorz Ochędzan, Member of the Management Board for Finance at AB S.A.

On the basis of the resolutions on the distribution of profit for the financial year 2020/2021 adopted by the General Meeting of Shareholders, AB Group implemented a buy-back mechanism and paid a dividend (PLN 1 gross per share) in December. In total, it could mean almost PLN 33 million paid out to shareholders.

– Even though we always prioritise operations, we would like to remain a company sharing profits with shareholders. This approach has always been close to our hearts and the decision on the profit distribution in the 2021/22 fiscal year should also take it into account. Furthermore, we believe that we are among the most attractive companies for investment on the Warsaw Stock Exchange, in terms of market indices, brokerage house recommendations and growth prospects. Therefore, after the end of the closed period related to the publication of the annual report, we intend to resume the buyback program with respect to our own shares – says the CFO of AB Group.

AB Group has launched numerous initiatives in the ESG area.In addition to environmental and corporate issues, the company has been actively involved in the fight against the coronavirus pandemic (nationwide #AByrazem campaign – nearly 1,000 pieces of various equipment, including respirators, were distributed to those in need). On the other hand, in the area of education, AB provides free training through its Competence Centre, popularising access to technological knowledge. Currently, in the wake of the hostilities in Ukraine, it is also responding in many ways to the needs of the Ukrainian community – the #AByrazem campaign for Ukraine. In addition to in-kind and financial assistance, AB Group’s Alsen is collecting used laptops, which, after refurbishing (both software and hardware), will go through the Ministry of Education to Ukrainian children.