ASBISc Enterprises (ASB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 6–6.4% year-over-year, with gross profit margin at 7.64%, and net profit dropped 57% year-over-year, impacted by Kazakhstan and Ukraine market challenges.

• Growth was observed in Poland, Czech Republic, Romania, Azerbaijan, and other CEE markets, partially offsetting declines.

• Breezy, the trade-in business, expanded rapidly, becoming a leading trade-in unit in CIS and launching new services in multiple countries.

• Strategic focus includes premium retail, own brands, and expansion in Africa, Western Europe, and the U.S.

• Interim dividend of $0.20 per share declared, with a steady dividend policy and buyback program under consideration.

Financial highlights

• Q3 2024 revenue was $722.5M–$723M, down 6–6.4% YoY; 9M 2024 revenue was $2.08B–$2,081.6M, down 4% YoY.

• Q3 2024 net income fell 57% YoY to $9.5M; 9M 2024 net income down 42% YoY to $29.6M.

• Gross profit margin in Q3 2024 at 7.64%, down from 7.99% YoY.

• EBIT in Q3 2024 at $19.0M, a 32% YoY decrease; EBITDA at $21.2M, down from $29.7M.

• SG&A costs increased 7–8.1% YoY in Q3 2024; inventories down $86M YoY.

Outlook and guidance

• 2024 revenue forecast is $3.1–3.4bn; net income forecast is $60–64M, with management monitoring Q4 for potential revision.

• Directors remain committed to meeting full-year guidance, with 9M 2024 results at 68% of revenue and 50% of net income targets.

• Focus for 2025 includes new Apple products, own brands, further expansion in Africa and Europe, and cost optimization.

• Most markets expected to grow in 2025, especially Poland, Czech Republic, Romania, Bulgaria, Greece, Hungary, and potentially Kazakhstan and Ukraine.

• Plans to optimize private labels and grow gross profit margins in 2025.