ALSO reaffirms positive development

ICT market

According to the CONTEXT market research institute, in the third quarter of 2014, the value of the ICT distribution market in the regions that are relevant for ALSO (excluding the Baltics and Netherlands) grew by 4.5 percent compared to the previous year. The development was positive in both the Central Europe market segment (+3.6 percent) and the Northern/Eastern Europe market segment (+8.6 percent).

Development of the individual market segments

In the Central Europe market segment, net sales increased by 10.5 percent compared to the previous year, to 3 935.4 million euros. The sales growth came mainly from the acquisition of Alpha International B.V., Netherlands, and the pleasing development of the core market, Germany. Profit before taxes (EBT) fell from 40.8 million euros to 38.2 million euros. At 1.0 percent, the EBT margin in the first nine months was lower than last year (1.1 percent). The result was negatively affected by continuing pressure on prices in France and Switzerland.

In the Northern/Eastern Europe market segment, net sales rose by 6.0 percent compared to the previous year, to 1 186.9 million euros. The growth was driven by the positive development in Retail and a strong demand for mobile telephones. Profit before taxes (EBT) rose from -0.5 million euros to +8.0 million euros. This was mainly achieved through the successful restructuring of Finland. At 0.7 percent, the EBT margin in the first nine months was substantially higher than last year (0.0 percent). In this region, ALSO could further expand its market and competitive position at the same time as increasing its margin.

Outlook for 2014

ALSO reaffirms its forecast for fiscal year 2014 and – barring unforeseeable events – expects a Group net profit of 50 to 55 million euros. "In view of the good results for the first nine months and the traditionally strong fourth quarter, our target corridor remains unchanged", comments Gustavo Möller-Hergt.