ELKO Group has announced it hit record-breaking financial levels in 2021 amid strong demand from the market for its IT and consumer electronic products.
Despite the global pandemic creating significant challenges, the IT distributor saw revenues climb by more than 0.3% to $219.1m (£176.2m), while cautious cost base management led to a net profit increase of 28.7% to $44.4m.
An increase in sales and net profit was accompanied by gross profit growth of $158.7m, a 22.2% increase from the previous year.
“In 2021, nothing was easy,” said Svens Dinsdorfs (pictured), the CEO of ELKO Group. “The record-high results were earned with tough work, and the main key to success is agility to secure product availability, find logistic routes and manage inventory levels with scrupulous calculation. The profit is in the details. The more complex the environment, the more services and the higher added value we as a distributor can provide.”
In February last year, ELKO Group issued €20m (£16.8m) five-year non-secured bonds with a coupon rate of 6 per annum, payable semi-annually. Bonds were listed on the Nasdaq First North in the second quarter of the year. And since the start of the Ukraine war, the group has halted the supply of products to the Russian market, and this week exited the Russian market by selling a 100% stake in all legal entities in the country.
Meanwhile, the business operations of ELKO in Ukraine have resumed since the end of March by opening sales to customers and planning new supplies.
“We have a reorientation ahead of us,” added Dinsdorfs. “The focus is on developing the CEE region and Scandinavia and business recovery in Ukraine. With ELKO's characteristic agility, we’re confident that none of the opportunities will be wasted. We already have a shortlist of new product groups to work with, new markets to expand and new services waiting on implementation.”
The company says it provides a wide range of products and services to over 10,000 retailers, local computer manufacturers, system integrators and enterprises within various verticals in 11 countries in Europe.
