ELKO Group Unaudited Annual Report, 2023

The first full year without any operations in Russia since the divestment in April 2022.
  • Revenue USD 1 185 million (EUR 1 096 million), a decrease of 21.8% year-on-year 
  • Gross profitability 7.0%, a decrease compared to 9.4% in 2022
  • Gross profit USD 83.0 million (EUR 76.8 million), a decrease of 41.8% year-on-year 
  • Net profit USD 12.1 million (EUR 11.1 million), a decrease of 70.0% year-on-year
The financial statement for the fiscal year 2023 of ELKO Group marks a significant milestone for the company as it highlights the completion of its strategic exit from the Russian market. Notably, the report reflects the company's first full year without any operations in Russia since the divestment in April 2022.

The decline in revenue is solely attributable to the former operations in Russia, as reflected in the consolidated figures for the initial four months of 2022. Excluding these figures and other divested entities in 2023, ELKO demonstrates a slightly higher sales performance compared to adjusted 2022 figures, diverging from the negative trend observed in the IT distribution market in Europe, which various market intelligence sources suggest experienced a downturn of approximately 5%.

Despite the challenges posed by the global economic environment, the company remains resilient and well-positioned for future growth and success. After exceptionally high-performing years of pandemic-driven demand for IT goods, despite a volume drop after the divestment of Russian operations and a notable cool-down in IT sales through distribution last year, ELKO Group's profitability in 2023 has normalized and is even higher than in the pre-pandemic year, landing at 7.0% compared to 5.3% in 2019.

Top 20 manufacturers by revenue in 2023: Apple, Roborock, Asus, Lenovo, DJI, Samsung, Hewlett-Packard (HP), Dell, MSI, Oppo, Western Digital, Seagate, Intel, Gigabyte, Microsoft, LG, Ubiquiti, Dreame, Acer and TP-Link.

A significant event in the reporting period – obtained authorised distribution of Xiaomi in the Nordic market. The product range for wholesale provided through ELKO and its daughter company Gandalf Distribution will be the broadest to date and will cover Xiaomi and Redmi smartphones, tablets, and the complete AIOT (ecosystem) product range. 
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 Europe and Central Asia. Established in 1993, Latvia.
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