The largest IT and consumer electronics distributor in Poland and the CEE region, AB Group, has been effectively included in the mWIG40 index of the Warsaw Stock Exchange (WSE) as of March 18, 2024. The first session following the inclusion in the index of the 60 most important companies on the Warsaw Stock Exchange confirms expectations of increased stock trading volumes, and the company is also observing increased analytical and investor interest.

– Currently, we are covered analytically by four independent brokerage houses, publishing comprehensive reports with recommendations that clearly state 'buy,’ with the highest target price indicating a potential increase of over 70%. We are also pleased with the increased interest from stock market investors who are reaching out to us. We are also excited about the anticipated significant increase in stock liquidity, which was already evident in the first session in mWIG40 – says Andrzej Przybyło, CEO of AB S.A.

On Monday, March 18, 2024, trading volumes of AB S.A. shares were over five times higher than the median of the last 30 days. Following almost 18 years of listing on the main market of the WSE, AB S.A. shares (WSE: ABPL, ABE) became part of the top 60 companies on the Polish stock exchange as part of the annual index review (WIG20 and mWIG40). GPW Benchmark, the formal administrator of benchmark indices, considers both stock liquidity (trading value) and free float market capitalization when determining the ranking list.

– This is another commitment for us to achieve ambitious development goals. By joining the mWIG40 index, we have joined a group of distinguished Polish IT market brands, such as Comarch and Asseco Poland, from the complementary software segment. We are recording record results, benefiting from being the distributor of choice for manufacturers and resellers. Our average annual growth over the past 20 years exceeds 16%. We are eager for more – we work towards this every day, consistently implementing a long-term, secure growth strategy, continuously refining our operational efficiency, creating the market, listening to the needs of our largest base of 16,000 active clients in the region, and maintaining solid finances – emphasizes CEO Andrzej Przybyło.

In Q1 of the 2023/2024 financial year (Q4 of the calendar year 2023), AB Group achieved very good financial results, reflecting both sales growth and internal optimization. Consolidated revenues, adjusted for the effect of the weakening Czech koruna reported by the subsidiary ATC, exceeded PLN 5 billion for the first time in history. Due to maintaining the lowest SG&A cost ratio in the industry, further reduction of financial liabilities and costs, and optimization of net working capital, AB Group achieved a growth in adjusted net profit to PLN 71.5 million in the last quarter. Over the last four quarters, i.e., in the calendar year 2023, AB Group’s revenues exceeded PLN 15.5 billion, EBITDA increased by over 11% year-on-year to PLN 306 million, gross profit exceeded PLN 203 million, and net profit rose to nearly PLN 162 million.

– Our return on invested capital remains above 18%, and the net debt to EBITDA ratio has dropped to a very low level of 0.6. We have ample financial space for growth, which is further amplified by favorable macroeconomic trends and digital transformation – indicates Grzegorz Ochędzan, CFO of AB S.A.

For years, AB Group has shared its success directly with investors, both through dividends and share buybacks. The General Meeting of Shareholders approved on March 6, 2024, a dividend payout of PLN 31.65 million from the profit of the previous financial year, equating to PLN 2.00 per share. This amount is 60% higher than the previous year and 100% more than two years ago. The dividend day was set for March 15, 2024, with the payout occurring on April 5. Shareholders also approved a three-year authorization for the Management Board to conduct a buy-back process, with up to PLN 100 million allocated for this purpose.

– We see room for directly sharing success with shareholders while also providing funds for ongoing business development. I am pleased that we can pay increasing dividends. Additionally, we plan to use the share buyback tool, as it is a beneficial process for shareholders in the situation of undervaluation of the shares on the WSE – says CEO Andrzej Przybyło.

AB Group is also proud of its silver medal from EcoVadis, placing it among the top 9% of IT distributors in terms of ESG. It is also the most appreciated business in the industry – for the 9th consecutive time, it was named Distributor of the Year in the Context ChannelWatch 2023 survey, and for the 7th consecutive time, it won the IT Reseller – IT Champions poll, among other awards from global IT manufacturers.