Nearly 9 billion PLN turnover of the AB Group

AB Group, the largest IT and consumer electronics distributor listed on the WSE in Poland and the CEE region, is approaching the 9 billion PLN annual turnover threshold. In the completed financial year of 2018/2019, consolidated revenues increased year-on-year by nearly 557 million PLN (7%), reaching a record 8.8 billion PLN. In the second quarter of 2019 alone (the fourth quarter of the financial year 2018/2019) they increased by 16% year on year, to nearly 2.1 billion PLN.

It was a record financial year, and at the same time the April-June period was the first in our history exceeding the threshold of 2 billion PLN in quarterly sales outside the industry peak sales periods, meaning. the fourth quarter of the calendar year. We consistently implement a long-term strategy of diversified development, using the most efficient solutions, including e-commerce and our own advanced automated logistics, supporting the widest portfolio of product indexes on the market, all available right away – comments Andrzej Przybyło, President of the Management Board of AB S.A.

We shape the market and listen to the expectations of over 16,000 business partners so that our activities bring the greatest possible added value to the supply chain. We are thrilled with numerous awards received, among which the Distributor of the Year title awarded annually by resellers deserves a special distinction – adds President Andrzej Przybyło.

In the past financial year, AB Group increased market share in seven of the ten largest categories of classic IT. It also records dynamic sales growth in the field of cloud software, digital signage solutions, smart home, RTV/AGD, toys and telecommunications devices, including smartphones. Almost every second smartphone sold on the main markets of the AB Group (Poland, the Czech Republic and Slovakia) comes from its distribution. The AB Group also remains number one in the distribution of the entire Apple product portfolio in Poland, the Czech Republic and Slovakia (57% share).

We have a wide portfolio of smartphone brands on offer, but we certainly see great sales potential in the Apple brand. While in Poland, iPhone is responsible for 8% of the smartphone market, and in Eastern Europe for 9%, in Western Europe it is 30%. At the same time, in our region you can see the trend of more and more expensive smartphones being bought, along with the enrichment of societies. This month new Apple product premiered, which, as always, are very popular – indicates Zbigniew Mądry, Board Member for Trade at AB S.A.

In the record-breaking sales year 2018/2019, the AB Group generated solid results: 344 million PLN gross profit on sales, 98 million EBITDA PLN and 58 million net profit PLN.
Foreign markets are behaving very well, and on the Polish market we have seen another year of pressure on margins, which was associated with changes in the market structure of the market. There are already some symptoms of normalization in the current quarter. Rationally operating companies in the world know that the price war is the last thing to strive for – says President Andrzej Przybyło.
However, already now, due to business diversification and a strong market position with numerous permanent competitive advantages, we have achieved very good results in the past financial year, as in previous periods, and our balance sheet position and strong stream of generated cash create a lot of room for further growth – emphasizes Grzegorz Ochędzan, Member of the Board for Finance at AB SA
The equity of the AB Group increased at the end of June this year. to record-breaking 790 million PLN (+ 10% yoy). Net financial debt decreased by 20%, to 225 million PLN and constituted only 28% of equity, and the net debt to EBITDA ratio dropped to 2.3. Safe and stable liquidity ratios go hand in hand with the lowest SG&A ratio in the industry (below 3%), reflecting the highest efficiency of the AB Group as a distributor. A high and stable operating cash flow yoy of 70 million PLN per year should also be noted.