News
22 Apr, 2025
ELKO Group Annual Report, 2024
Year of resilience and focus on maintaining profitability
January – December 2024 highlights
- Revenue USD 1143 million (EUR 1056 million), a decrease of 0.4% year-on-year
- Gross profitability 7.8%, an increase compared to 7.3% in 2023
- Gross profit USD 88.7 million (EUR 82.0 million), an increase of 6.5% year-on-year
- Net profit USD 14.1 million (EUR 13.1 million), an increase of 9.0% year-on-year
According to the Consolidated Annual Report 2024, Akciju Sabiedrība ELKO Grupa turnover during the 12 months of 2024 reached USD 1143 (EUR 1056m), which is a marginal 0.4% decrease over the corresponding period in 2023.
While core segments remained flat or slightly declined, targeted strategies in consumer electronics, mobile communications, and new vendor partnerships drove success, with some vendors achieving even triple-digit growth.
Despite the complicated tax environment in some geographies, like Romania, introducing a minimum turnover tax of 1%, ELKO maintained profitability through cost control and regional growth, allowing it to achieve and slightly exceed the company’s annual target.
In order to further strengthen ELKO's offering to the market, several M&A initiatives were undertaken, which are likely to yield positive results in 2025.
While core segments remained flat or slightly declined, targeted strategies in consumer electronics, mobile communications, and new vendor partnerships drove success, with some vendors achieving even triple-digit growth.
Despite the complicated tax environment in some geographies, like Romania, introducing a minimum turnover tax of 1%, ELKO maintained profitability through cost control and regional growth, allowing it to achieve and slightly exceed the company’s annual target.
In order to further strengthen ELKO's offering to the market, several M&A initiatives were undertaken, which are likely to yield positive results in 2025.
Significant events after the reporting period
On 21 February 2025, Akciju Sabiedrība ELKO Grupa signed a Sales and Purchase Agreement for the acquisition of 100% of the shares in Deltaco Baltic UAB, a Lithuanian subsidiary of Aurdel Sweden AB, a part of the DistIT Group, as part of its strategic expansion into major domestic appliance distribution. The transaction is subject to customary regulatory approvals.
On March 5, 2025, Gandalf Distribution AB, a 100% subsidiary of the Group, concluded a Sales and Purchase Agreement for the acquisition of 78.95% of the shares in Renewed AB, a fast-growing Swedish-based electronics re-commerce player. Renewed AB is a well-established company in the refurbished device market. The comprehensive product range includes smartphones, tablets, smartwatches, laptops and accessories. The company is headquartered in Stockholm with a regional network of suppliers and service partners and has achieved EUR 12.3 million in sales in 2024.
On March 5, 2025, Gandalf Distribution AB, a 100% subsidiary of the Group, concluded a Sales and Purchase Agreement for the acquisition of 78.95% of the shares in Renewed AB, a fast-growing Swedish-based electronics re-commerce player. Renewed AB is a well-established company in the refurbished device market. The comprehensive product range includes smartphones, tablets, smartwatches, laptops and accessories. The company is headquartered in Stockholm with a regional network of suppliers and service partners and has achieved EUR 12.3 million in sales in 2024.
About ELKO Group
The ELKO Group is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 350 world-leading manufacturers. The company provides a wide range of products and services to more than 10 000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 13 countries in Central and Eastern Europe and the Nordics. Established in 1993, Latvia.
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