ELKO Group Interim Report January-September 2022
Despite the drop in turnover, profit increase
Riga, 2022-11-17 08:46 CET --
Despite a decrease in consolidated revenue by 25.2%, caused by the divestment of Russian operations in April 2022, ELKO’s performance is excellent, as the profitability is at a very good level.
The company managed to reorient quickly, expanding its product portfolio (e.g. power stations, drones, gardens and power tools) and adding new distribution areas to existing distribution agreements. Operations in other geographies are not significantly affected by war as of the moment, but the outlook is cautious, given strong inflationary pressure across all European markets.
Regarding the Ukrainian market, there were no sales during March. However, in April, sales in Ukraine were recovering, and now there is a positive tendency in customer cash collection. Nevertheless, ELKO takes all necessary measures not to expose itself to risks, keeping sales in Ukraine at a comparably low level.
January – September 2022 highlights
Revenue USD 1 113 million (EUR 1 037 million), a decrease of 25.2% year-on-year
Gross profitability 9.8%, an increase compared to 6.5% in 2021, 9 months
Gross profit USD 108.6 million (EUR 101.3 million), up by 11.6% year-on-year
Net profit USD 28.9 million (EUR 26.6 million), an increase of 13.3% year-on-year
About ELKO Group
ELKO Group is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 350 IT manufacturers. The company provides a wide range of products and services to more than 10 000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 29 countries in Europe and Central Asia.
Head of Treasury
Akciju sabiedriba ELKO Grupa
4, Toma Street, Riga, LV-1003, Latvia
+ 371 6709 2357