Asbis revenue more than doubles as AI demand drives record quarter

Cyprus-based technology distributor Asbis on Thursday reported a record third quarter in 2026, with revenue rising by 135.3 per cent year-on-year to $2.19 billion as demand for artificial intelligence infrastructure and consumer electronics fuelled growth across its markets. The company said it had continued to achieve strong sales growth throughout the quarter, despite the ongoing war in Ukraine, one of its largest markets, and turbulence in the Middle East. July and August sales nearly doubled compared with the same months in 2025, while September marked the first time the company had exceeded $1bn in monthly revenue. For the three months ended September 30, 2026, gross profit increased by 106.3 per cent to $134.8 million, compared with $65.3 million a year earlier. However, the gross profit margin narrowed to 6.16 per cent from 7.03 per cent. Operating profit, or EBIT, more than tripled to $74.4m, compared with $23.3m in the third quarter of 2025. Net profit after tax climbed to $51.6m, from $11.6m, representing more than fourfold growth and the company’s strongest quarterly result in both revenue and profitability, according to the report. EBITDA increased to $78.5m from $25.7m. Selling expenses rose by 42.7 per cent to $36.3m, while administrative expenses increased by 45.4 per cent to $24.1m. For the first nine months of 2026, Asbis generated revenue of $5.15bn, an increase of 97 per cent compared with the corresponding period last year. Net profit after tax reached $132.2m, against $31.1m in the first nine months of 2025. The company had $272.7m in cash and cash equivalents at the end of September, up from $257.6m at the end of 2025. Asbis attributed its performance to growing global demand for AI infrastructure, alongside continued sales of consumer products, including some of the world’s most popular smartphone models. It said its project pipeline indicated that demand for AI-related components and data-centre infrastructure was likely to continue, adding that it had good visibility over upcoming business. The strongest product category was servers and server blocks, where sales increased by 545 per cent year-on-year in the third quarter. Smartphone sales also recorded substantial growth, rising by 78 per cent compared with the same period in 2025. The company said the geographical composition of its revenue had also shifted, with Western Europe recording particularly strong growth and taking a larger share of group sales. The Netherlands was its fastest-growing market, with revenue increasing by 1,840 per cent in the third quarter and 711 per cent over the first nine months. Asbis attributed the performance to demand for AI solutions and data-centre infrastructure, strong enterprise project activity and its role as a distributor for a wider customer base, including leading AI services developers across Europe, the Middle East and Africa. Germany also recorded particularly strong growth, which the company linked to sales of components used in AI and data-centre projects. Other markets recording substantial third-quarter growth included South Africa, where sales increased by 199 per cent, Ukraine, up 143 per cent, and Kazakhstan, up 85 per cent. Kazakhstan continued to benefit from strong demand for smartphones, particularly in the premium segment, as well as increasing interest in devices incorporating AI capabilities. Asbis said regulatory changes involving IMEI verification, customs and border controls had reduced pressure from illicit-market activity, helping it increase market share, improve pricing stability and strengthen control over distribution channels. The company also said it was expanding its position in Kazakhstan’s AI infrastructure market, where it can provide full-scale solutions for major projects. It pointed to the country’s decision to designate 2026 as the Year of Digitalisation and Artificial Intelligence, alongside government-backed investment in computing infrastructure and the development of a national AI ecosystem. Ukraine remained Asbis’ second-largest market, with the company reporting that it had continued operating fully despite the war and Russian strikes. It said demand had remained strong across both consumer and enterprise markets, with iPhone models among the most sought-after products. In the Middle East, the company identified Saudi Arabia and the United Arab Emirates as its largest growth opportunities, citing sovereign-backed AI projects, data-centre development and cloud deployments. These investments are generating demand for servers, networking equipment, storage and other AI-related hardware. Asbis said it was strengthening its position in the sector through partnerships with technology suppliers including Nvidia, AMD, Intel, Micron, SK Hynix, Seagate, Toshiba and Supermicro. Alongside its distribution operations, the company continued expanding its premium retail business. In September, it opened its eighth Bang & Olufsen store worldwide and its third in the United States, at Stanford Shopping Centre in Palo Alto, California. The company also participated in Apple’s first New Product Introduction campaign in newly established markets in Ghana and Ivory Coast, reaching an estimated sevenm people in Ghana and 3.2m in Ivory Coast. Asbis said it expected the campaign to have a positive impact on revenue in the coming quarters. In October, it opened two new iSpace stores selling Apple products in Kazakhstan and Azerbaijan, bringing the network to 37 stores across seven Commonwealth of Independent States countries. These are Armenia, Azerbaijan, Georgia, Kazakhstan, Moldova, Ukraine and Uzbekistan. Asbis is an authorised Apple distributor in 25 countries. Its wider premium and luxury retail network comprises 37 iSpace Apple Premium Reseller stores, eight Bang & Olufsen outlets and 13 Samsung stores in Poland. The company also expanded its online sales operations, launching Amazon Merchant Fulfilled sales in Germany, France, Italy and Spain. The operation, managed by the Amazon Central Team and Asbis Poland, introduced 342 products from the CANYON, AENO and LORGAR brands across the four marketplaces, with a total of 1,368 active product listings. Asbis Middle East was named Retail Distributor of the Year at the 2026 Channel Leadership Forum and Awards, organised by Tahawultech. The company also reported that Phison Electronics had opened its first local entity in Eschborn, Germany, as part of an expansion of its European operations. Asbis is helping bring Phison’s Pascari enterprise solid-state drive portfolio to European markets through its distribution network and enterprise capabilities. Another development was an expanded distribution agreement with Premium Audio Company, adding German audio brand Magnat to Asbis’ portfolio. The full Magnat range is to be made available across 39 markets in Europe, the Middle East and Africa. It becomes the fourth Premium Audio Company brand distributed by Asbis, joining Klipsch, Onkyo and Integra. The company said it had maintained its dividend policy, deciding to pay shareholders an interim dividend of $0.35 per share from its 2026 profits. It said the policy was intended to reward long-standing investors while retaining sufficient cash to finance further growth. Asbis said its ambitions for 2026 remained unchanged, with a focus on achieving its highest-ever profitability for shareholders and building a stronger foundation for future growth.