OREANDA-NEWS. ELKO Group, one of the largest IT product wholesalers and IT solutions and services distributors in Eastern Europe, has announced the unaudited results for fiscal year 2015. Despite challenging market conditions ELKO Group managed to sustain sales at the same level comparing to prior year and rise net profit up to 21.8 million USD, which is considered as excellent result, comparing loss in 2014 caused by currency fluctuation and general turbulence in CIS region's economy.

The economic conditions in key regions - CIS countries continue to be unfavourable and IT sector in the respective markets has declined significantly, however ELKO Group managed to outpace the market in CIS region and together with considerably increased operations in CEE region ELKO Group has achieved nearly the similar sales results as in prior year. In 2015 ELKO Group generated sales in amount of 1,252 million USD (1,139 million EUR)* comparing to 1,292 million USD (973 million EUR)** in 2014. By applying more rigid risk management policies and improved cost management, net profit rose to 21.8 million USD (19.6 million EUR)* comparing to loss of 7.1 million USD (5.4 million EUR)** in 2014. 

“Due to changing situation in the CIS region, which accounts for a significant part of the ELKO Group business, and the fact that CIS region market was not expected to show positive development, at the beginning of 2015 we were cautious and estimated 9% decrease of ELKO Group total turnover and 10 million USD profit. Well thought and correctly implemented pricing strategy assisted by solid risk management and positive growth on other markets lead us to much higher result. Already in the middle of the year the budget was reassessed and profit forecast updated expecting more than 20 million USD,” Svens Dinsdorfs, ELKO Group CEO, comments.

Overview by regions

Turbulence in CIS region’s economy has led to decrease of IT market by up to 30% while ELKO Group has managed outperform the market and sales in CIS region have decreased just by 14% reaching 773 million USD. Due to EUR currency weakening ELKO Group’s sales in Baltic market decreased by 6 million USD that is 6% drop comparing to prior year, which was in line with overall market decrease. ELKO Group showed substantial growth of 33% in CEE region as the sales reached 373 million USD.

Results of 2015 affirms ELKO Group’s commitment to focus on continuous improvement of company’s operations – advanced planning procedures, rigid purchasing policies and prudent risk assessment.

In 2016 ELKO Group with its recently established business division ELKO Solutions will continue to strengthen its expertise and position in solutions sector, offering knowledge and experience in the acquisition and implementation of various technological solutions as well as continuing to expand its broadline business product portfolio.

Despite challenging market condition in CIS region the management of ELKO Group believes that the growth in the other markets as well as continuous development of solution business in 2016 will allow achieve similar sales and net profit figures as in 2015.

About ELKO Group

ELKO Group was founded in 1993 and is one of the largest IT product wholesalers and IT solutions and services distributors in Eastern Europe, now also actively expanding to Central Asian market. The main two business divisions for ELKO are: providing expertise to partners regarding a variety of solutions and services and wholesale of computer and electronic products. ELKO represents more than 120 IT vendors and sells their goods to more than 6500 retailers, local computer producers and system integrators. ELKO offers more than 20 000 product titles from the most famous vendors - Acer, Apple, Asus, Dell, HGST, Intel, Kingston, Lenovo, Microsoft, Seagate, Supermicro, Western Digital and others. At the moment, more than 700 people are employed with ELKO. ELKO Group belongs to several legal entities and investment fund Amber Trust.