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ELKO Group Interim Report January–September, 2017

Growth in all markets
  • Revenue USD 1 064 million (EUR 955 million), up by 13.5% year-on-year
  • Gross profitability 4.8%, up by 0.7 percent points year-on-year
  • Gross profit USD 50.6 million (EUR 45.4 million), up by 33% year-on-year
  • Net profit USD 7.1 million (EUR 6.4 million), up by 11% year-on-year
The ELKO Group’s revenue for the first nine months of 2017 increased by 13.5% to reach USD 1 064 million (EUR 955 million), compared to USD 938 million (EUR 840 million) for the same period in 2016.

At the beginning of July 2017, the acquisition of 85% of shares in one of the leading distributors of hardware and electronics in Sweden, Gandalf Distribution AB, was completed. Sales also began in the Polish market by attracting a local sales team for IT and consumer electronics. Starting with the third quarter, consolidated reports include results for both Gandalf Distribution AB and Poland, separating out operating results for both the Nordic region and Poland as part of the Baltic region, as product supply to Poland is sourced from both the Riga warehouse and the Amsterdam Logistics Centre.

Gross profit reached USD 50.6 million (EUR 45.4 million), which is 33% more than for the nine months of the previous year. The increase in gross profit reflects the company’s efforts to optimise business operations by giving up part of its service outsourcing, mainly in the CIS region.
  • Central and Eastern Europe – up by 6.6%, reaching USD 395 million (EUR 355 million)
  • CIS region – up by 16%, reaching USD 569 million (EUR 511 million)
  • Baltic States – up by 5.3%, reaching USD 81 million (EUR 72 million)
  • Nordic countries – turnover for July-September was USD 19 million (EUR 17 million)
The ELKO Group is one of the region's largest distributors of IT products and solutions, representing 180 IT manufacturers, and providing a wide range of products and services to more than 7 000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 30 countries across Europe and Central Asia. The Group’s turnover in 2016 amounted to USD 1 460 million.

More information:
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  2. ELKO Group Interim Report January–September, 2017