Asbis bounces back with solid Q4 showing

Distributor dares to talk of market recovery after registering 13% spike in sales

Tags: ASBIS GroupHitachi Global Storage TechnologiesUnited Arab Emirates
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Asbis bounces back with solid Q4 showing Asbis’ latest financial results have given the distribution sector hope that the market is on the road to recovery. (ITP Images)
By  Andrew Seymour Published  February 24, 2010

IT distributor Asbis has given the embattled PC and components channel reason to be optimistic that business levels are beginning to resume to normality by reporting a 13% rise in revenues during the fourth quarter.

The Cyprus-listed company recorded group sales of US$410m during Q4, as it turned in a profit of US$2.4m to erase the memory of the US$6.4m loss it suffered in the corresponding period the year before.

Asbis chairman and CEO, Siarhei Kostevitch, said the company's financial performance had "returned to a satisfactory level" during Q4 and added that he expected the trend to continue into 2010.

The improvement in group revenue brings Asbis out of a slump that was largely induced by the severe deterioration of its main markets of Russia and Eastern Europe.

Its operations in the Middle East and Africa - which had posted growth during all previous quarters of last year - continued to star again in Q4 by registering sales of US$51m, a 27% improvement on the previous year.

Asbis has now seen its results pick up quarter-on-quarter since the crisis struck and Kostevitch puts the improvement in form down to a couple of key factors: "This was possible because of improved product portfolio and upgraded hedging strategies. That allowed us to benefit from the recovery in our main markets in Q3 and especially in Q4'09, when revenues in all major regions grew compared to both Q4'08 and to any previous quarter of 2009."

Earlier this week, meanwhile, Asbis announced it had reached an agreement with Hitachi Global Storage Technologies to begin shipping its external storage drives in EMEA.

The company has the rights to distribute the products via distribution centres and local offices that it operates in more than 26 countries.

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