Asbis could grow business with Apple to nearly $3 billion by 2025

Asbis Enterprises may increase business with Apple to almost USD 3 billion in 2025, compared to the expected USD 1.7-1.8 billion this year and USD 1.4 billion last year, according to Asbis’ CFO Marios Christou.

“Apple is our absolute key partner with whom we have a very fruitful cooperation. Faced with a challenging global smartphone market, Apple is taking advantage of markets where we have a strong and growing presence. This year, Apple expects business with us to reach USD 1.7-1.8 billion, compared to USD 1.4 billion a year earlier. There is also an expectation that the scale of our business with Apple will reach almost USD 3 billion in 2025,” Christou said during a meeting with journalists.

Asbis forecasts that in 2023 it will achieve a total net profit after tax of between USD 78 million and USD 82 million and total sales revenues of between USD 3 billion and USD 3.2 billion. Smartphones drive the dynamic growth of the group’s business, especially in the face of declines in the PC and computer peripherals category.

“Estimates of declines in the PC and components market this year are as high as 20-30%. In this category, our declines are clearly lower than the market ones, so we are paradoxically increasing our market shares,” said the CFO.

He added that after a 4% increase in revenues in the first quarter, Asbis expects further sales growth during the current year at a double-digit level.

“Gross margin for the whole year should be relatively high, above 8%. Its lowest level is historically recorded in the second quarter. Operating cash flow after the first three months of the year was minus USD 100 million, but traditionally we should break at least zero at this level throughout the year,” Christou pointed out.

He also noted that after a period of investment in logistics, in order to handle the growth assumed in the forecasts, the company is slowing down its investment activity. The group currently has four logistics centers.

As part of the geographical development, Asbis established a company in Greece and carefully, but entering other countries on the African continent, also cares about the development of business in Central and Western Europe (where it only expands sales teams and does not plan to establish subsidiaries).

“We also hope to divest the Moscow subsidiary this year,” the CFO announced.

He also emphasized that Asbis still has high expectations for the robotics segment.

“We want to wait for the third quarter to see the effects of the investments made so far and we will decide on further investments in this area. We have assumed USD 50 million of sales in this segment for the second half of the year and we consider this estimate to be conservative. The robotics market has a lot of potential, we will see how much of it can be used,” concluded Christou.

Asbis Enterprises Plc is one of the leading distributors of IT products in the emerging markets of Europe, the Middle East and Africa (EMEA). The company has been listed on the Warsaw Stock Exchange since 2007. Consolidated revenues of Asbis amounted to USD 2.69 billion in 2022.

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