Q1 2021 in AB Group: another quarter of strong revenue growth and doubled net profit

With long-term investments in effectiveness, organic development and modern technologies - e-commerce, cloud, warehouse automatics, AI systems, and favourable market environment in the times of accelerated digitalisation of CEE region societies, AB Group maintains high dynamics of business scale growth and generate financial results. The results of the last quarter and of the three quarters of the current financial year 2020/2021 are record high.

Selected financial results:

In Q3 of the financial year 2020/2021 (January-March 2021), Lower Silesia based AB Group noted nearly PLN 3 bn revenue (+30% y/y), and with the highest effectiveness in its business, it earned over PLN 40 m EBITDA (+70% y/y) and PLN 25.5 m net profit (+110% y/y). For the first time, revenue for three quarters exceeded PLN 10 bn, and net profit nearly reached the result for the entire 2020 (over PLN 97 m).

- We are an e-commerce company with a strong focus on new technologies and process automation, including trade transactions and logistic operations. We anticipate changes in a long-term perspective and invest in development and business effectiveness. We have built stable competitive advantages, and we listen carefully to our clients' needs. We think long-term, and that is how we operate, building healthy foundations for the company and predicting market changes. This makes us grow stronger than the market, no matter the external situation, and at the same time and for the same reason we benefit from the current situation in the business environment more than the competition - comments Andrzej Przybyło, President of the Management Board of AB Group.

Despite the fact that Polish IT market is growing fastest in Europe, AB Group achieves higher margins and profits in Czech Republic and in Slovakia - the other two markets of its operating presence. Polish market is still very competitive.

Since the end of Q1 2020, the market has observed a dynamic growth of such categories as laptops, smartphones or a range of gaming products. Higher demand also concerns the products for data storage and network equipment. Naturally, the sales of subscriptions for software in cloud grows, and AB Competence Centre notes record high attendance at numerous webinars. AB Competence Centre also fits in the company presence in the segment of products with added value where the team of system engineers supports our partners throughout the entire value supply chain to the end customers. The household goods distribution segment is also rising.

- AB Group is ready to handle further increase of demand within CEE region - both operatively and financially. We are favoured by the increased demand for electronic appliances, the growth of the e-commerce market, and macroeconomics. Our intention is to share the business success with the shareholders. Naturally, everything will be decided by the General Meeting at the end of the current year, approving the financial year 2020/2021 which ends on 30^th June - says Grzegorz Ochędzan, a Member of the Management Board, CFO of the AB Group.

As a part of the national fight against COVID-19, AB Group has initiated the action #AByrazem, which operatively engaged more than 100 persons, and those in need received nearly 1 thousand items of various hardware. Within #AByrazem initiative, AB S.A. has acquired and financed respirators for two hospitals in Wrocław. The company has also presented institutions in need with toys and accessories for children and food products. Moreover, together with the companies Lenovo and Motorola, AB Group has supplied computer and telecommunication equipment, and with partners: Sharp, Whirlpool, Gorenje, Toshiba, Brita, Megabajt, Winix, AB Group was able to find household appliances (e.g. washing machines, fridges, and cookers) needed for the required change of the mode of work of medical staff to many facilities located all over Poland. #AByrazem is going on and supporting the fight against the coronavirus pandemic, according to the current needs.

The initiative #AByrazem has been recognised with a special reward for CSR activities at IT Reseller gala. AB Group team claimed a historic four-time victory - additionally AB company was awarded the title of the distributor of the year, Ms. Patrycja Gawarecka was named the best sales and marketing manager, and Mr Zbigniew Mądry - a Member of the Management Board of AB S.A. for trade - was awarded the title of a personality of the business.