Poland-based distributor ABC Data has posted a 15% growth in Q1 revenue, driven by a rapid sales increase in the European markets, which were growing at the faster pace of 7% yr/yr against the market average of 1-3% yr/yr in Q1 2015.
Also, the geographical expansion and a constant development of product portfolio together with cost optimisation contributed significantly to the positive financial performance at the end of the period, the company says.
With consolidated revenue at PLN1.3bn (€318m) in the first quarter of the year, ABC Data increased its net profit by almost 90% yr/yr to PLN12.9m against PLN6.81m in prior year. Such an enormous growth was enabled by increased scale of operations within the group, improvement in gross margin and lower financing costs, it says. Additionally, an ABC’s subsidiary iSource, which distributes Apple products in Poland, significantly lifted its sales during the first three months of the year.
ABC says it maintained its leading position in traditional market segments such as PCs together with IT components and accessories while, at the same time, its mobile segment showed a healthy growth.
“We have been constantly expanding the portfolio of our products and services as well as growing our customer base. Additionally, we have developed and improved the e-commerce tools which help us consolidate our leading position in a customer service in all the markets we operate. Our positive financial performance is the result of an increased scale of operations coupled with sound financial discipline and the costs optimisation introduced in the last quarter. Thanks to these measures, the company has become more flexible,” says Ilona Weiss, CEO of ABC Data.