CEO targets continued dividends after historic year for Asbis

Cyprus-based IT distributor Asbis Group reported a net profit of $60.2 million for 2025, highlighting a record year driven by strong demand across multiple technology segments.

The company said that net profit rose from $54.2 million in 2024, reflecting continued growth in both revenues and operational performance.

Revenue reached $3.9 billion in 2025, marking a 28 per cent increase year-on-year, supported by expanding demand for IT products and infrastructure.

The group also reported that profit from operations reached $111 million, up 18 per cent compared to the previous year, while the gross profit margin stood at 7.22 per cent.

“Asbis experienced dynamic growth marked by an explosive revenue increase and historic monthly sales driven mainly by the boom in AI server components, data centre building blocks and smartphones,” said chairman and chief executive officer Siarhei Kostevitch.

The company described 2025 as a landmark year, coinciding with its 35-year anniversary, and noted that it had expanded its reach across approximately 60 countries with facilities in 34 markets.

“We have been engaged with a variety of customers in multiple layers of the supply value chain in a growing number of countries,” he said.

“We have been engaged in projects that are continuously upgrading data centres in different territories,” he added.

The group expects large-scale investment in cloud and AI infrastructure to remain a key driver of growth in the current year.

The company also highlighted expansion into Africa and the United States, alongside new strategic partnerships and product launches under its own brands, reinforcing its position as a leading value-add distributor in the EMEA region.

At the end of 2025, Asbis entered the US market and opened Bang & Olufsen’s largest flagship showroom in San Francisco, marking the first step in a broader expansion strategy in California.

The group said it plans to open additional stores in Los Angeles and Palo Alto during 2026 as part of this initiative.

Asbis currently operates 40 premium and luxury monobrand retail stores across 11 countries, including 32 Apple Premium Reseller outlets under the iSpace brand and eight Bang & Olufsen showrooms in Cyprus, South Africa, Georgia, Italy and the United States.

The company also reported a major investment in logistics, completing a 20,000 square metre warehouse in Kazakhstan, increasing total warehouse capacity by over 20 per cent to 70,000 square metres.

Kazakhstan has become the company’s largest revenue contributor in the post-war period, prompting further investment to support growth in the market.

In 2026, the group completed the acquisition of a network of 13 Samsung brand stores in Poland, strengthening its retail business segment.

The company also expanded its portfolio of IT products and services, including significant investment in its second-life devices division Breezy.

Breezy recorded a breakthrough year with the launch of its first fully AI-powered robotised refurbishment factory in Poland, significantly boosting its capacity to process and upgrade used smartphones.

The company said this development positions it as a leading recommerce player in Central Europe.

Asbis maintains partnerships with major global vendors including Apple, AMD, Intel, Micron, Western Digital, Logitech, Dell, Lenovo, Seagate, HP, Microsoft, IBM, Bang & Olufsen and ASUS, alongside newer suppliers such as Midea, Royal Kludge, Klipsch, iLera and Arctic Wolf.

With more than 110,000 products in its portfolio, the group said it remains a strong partner for international suppliers of IT components and finished products.

As of December 31, 2025, the company held $257.6 million in cash and cash equivalents, compared to $155.0 million a year earlier.

The group said it continued to focus on shareholder returns by distributing both interim and final dividends, supported by strong cash flow.

“We want to continue our hefty dividend policy should the circumstances allow us,” said Kostevitch.

“All in all, I am extremely satisfied with the financial and non-financial achievements in 2025,” he said.

“Across countries and all time zones, we delivered maximum possible overcoming challenges and seizing opportunities,” he added.

“I am filled with excitement about the possibilities that lie ahead of us,” he said.

“I am sure that our healthy fundamentals and shared vision and commitment to success will continue to guide us as we navigate new challenges and strive for greater heights,” he continued.

The chief executive also thanked stakeholders for their support, emphasising the role of employees, clients and suppliers in the group’s performance.

“Thank you for your contributions that make Asbis not only a leading global company, but also a wonderful place to work,” he said.

The company also outlined a range of risks, including the ongoing war in Ukraine, which continues to affect operations and creates an unstable business environment in the region.

Management said the conflict remains a major negative factor, complicating strategic planning despite continued strong results.

The group also highlighted the conflict in the Middle East, noting that rising oil prices and regional instability could lead to inflationary pressures across multiple sectors.

Asbis said it is closely monitoring developments, particularly in the UAE, where it maintains investments and a distribution centre.

The company further warned about unfair competition from unauthorised channels, with illicit trading and illegal imports affecting performance and reducing tax revenues in key markets.

It noted that while authorised distributors comply with regulations and taxation, illicit traders bypass fiscal controls, creating market distortions.

Additional risks include country-specific financial instability, which may impact performance in key markets, as well as exposure to credit risk linked to customer payments.

The company explained that it remains liable to suppliers regardless of whether customers fulfil their payment obligations, although credit insurance is in place for most revenues.

However, certain markets such as Ukraine remain uninsured, increasing the need for alternative risk mitigation measures.

The group also cited intense global competition and pricing pressure, which could lead to reduced margins and potential loss of market share.

It noted that the IT distribution sector operates on low profit margins, making results highly sensitive to fluctuations in costs and pricing.

The company also highlighted risks related to inventory obsolescence and rapid technological change, which may lead to devaluation or write-offs of stock.

It added that increasing e-commerce activity by suppliers could allow them to sell directly to customers, potentially bypassing distributors and affecting Asbis’ market position.