ELKO Group Interim Report January-March 2022 Excellent performance despite a decrease in consolidated revenue. Riga, 2022-05-17 10:55 CEST --
The first signs of market stabilisation at the beginning of the year were ruined by the war in Ukraine. Consequently, ELKO Group immediately stopped supplying goods to the Russian market and operations in Ukraine were terminated for a month (now fully recovered), resulting in an 18.5% drop in consolidated turnover. At the same time, demand remained very strong in the absence of supply, and profitability increased noticeably, reaching USD 10m (EUR 9m), which is the highest for the first quarter in 29 years of ELKO history.
January – March 2022 highlights
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Revenue USD 389 million (EUR 347 million), a decrease of 18.5% year-on-year
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Gross profitability 8.8%, an increase compared to 5.4% in 2021, 3 months
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Gross profit USD 34 million (EUR 30 million), up by 31.6% year-on-year
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Net profit USD 10 million (EUR 9 million), an increase of 88% year-on-year
The first ESG report
Along with the financial report, ELKO Group has issued its first Environmental, Social and Governance Report for 2021. The report discloses the achievements, principles, and initiatives regarding environmental, social, and governance matters of ELKO Group.
“While we realize that we ourselves are not a major contributor to CO2 footprint in our supply chain, we are driving our product and service portfolio to make sure that all our suppliers and transport providers eventually comply with internal legislation and industry best practices and most have set ambitious goals to reach climate neutrality in the foreseeable future,” comments Svens Dinsdorfs, the CEO of ELKO Group.
Exiting Russia
After the reporting period, on April 25, 2022, exited the Russian market by selling a 100% stake in all legal entities in Russia, as a continued presence in the Russian market is associated with both financial and reputational risks.
Analysis shows that, although revenues will decrease, ELKO’s financial standing will improve noticeably: ELKO don’t have exposure to risks associated with Russian assets; the balance sheet structure will improve, and profitability will enhance; advanced financial standing strengthens ELKO’s creditworthiness.
About ELKO Group
ELKO Group is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 400 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 11 countries in Europe.
More information:
www.elkogroup.com
LinkedIn: https://www.linkedin.com/company/elko-group
Facebook: https://www.facebook.com/elkogroup/
Twitter: @ELKO_Group
Instagram: elko_group
Janis Kirsis
Head of Treasury
ELKO Grupa AS
4, Toma Street, Riga, LV-1003, Latvia
+ 371 6709 2357
janis.kirsis@elkogroup.com
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