Cyprus-based IT distributor posts record profit as AI demand drives growth

Asbis delivers ‘best quarter in company history’ Cyprus-based IT distributor ASBISc Enterprises Plc, commonly known as Asbis, on Thursday reported its most profitable quarter on record after net profit more than tripled during the second quarter of 2026. According to the company’s half-year report, this was driven by booming demand for AI infrastructure, smartphones and servers across its international markets. The Limassol-headquartered firm said that net profit reached a historic $44.3 million in the second quarter, compared with $12.1 million in the corresponding period of 2025, marking the highest quarterly profit in its 36-year history. For the first half of 2026, Asbis generated net profit after tax of $80.6m, compared with $19.4m in the same period last year. The company also delivered record revenues, with second-quarter sales rising 78.7 per cent year-on-year to $1.69 billion, up from $949.3m a year earlier. Revenue for the first six months of 2026 reached $2.97bn, representing an increase of 76 per cent compared with the first half of 2025. Gross profit increased 88.7 per cent during the second quarter to $119.9m, while the gross profit margin improved to 7.07 per cent, compared with 6.69 per cent a year earlier. Operating profit (EBIT) more than doubled to $62.6m, compared with $23.5m in the second quarter of 2025. EBITDA also rose sharply, reaching $66.4m, compared with $26.0m in the corresponding quarter last year. Selling expenses increased 49.1 per cent to $34.9m, while administrative expenses rose 34.9 per cent to $22.4m. Asbis ended the first half of the year with $301.4m in cash and cash equivalents, up from $257.6m at the end of 2025. The company also reported a significant improvement in cash generation, with positive operating cash flow of $97.6m during the second quarter, compared with an outflow of $0.1m a year earlier. The company described the second quarter of 2026 as its most successful quarter ever, saying every month delivered strong double-digit sales growth despite the ongoing war in Ukraine and disruptions across the Middle East. For the first time in its history, monthly revenues exceeded $600m in both May and June 2026. According to the company, the record performance reflected continued investment in customer relationships and distribution infrastructure, surging demand for AI data centres and exceptionally strong smartphone sales following the launch of new models across its markets. In April 2026, Asbis received the Star Performer in Eastern Europe award at the EMEA NVIDIA Partner Awards 2026 during the company’s annual Partner Day event. The company said the recognition reflected its close cooperation with NVIDIA in advancing AI and accelerated computing technologies. During June 2026, Asbis also opened another Bang & Olufsen flagship store in the United States, located in West Hollywood’s Design District. The outlet became the company’s seventh Bang & Olufsen store and its second in the United States. Overall, Asbis now operates 56 premium and luxury retail stores, including 36 Apple Premium Reseller iSpace outlets, seven Bang & Olufsen stores and 13 Samsung stores in Poland. The company also strengthened its presence in Africa during the second quarter by signing a distribution agreement with Apple covering 14 African countries. Following the agreement, Asbis said it is now an authorised distributor of Apple products in 25 countries worldwide. Management said the newly added markets offer strong long-term growth potential due to expanding digital infrastructure, rising demand for premium technology products and a growing middle class. The company said Kazakhstan continued to perform strongly after the introduction of an IMEI verification system in 2025 and improvements to customs and border controls. According to Asbis, illegal smartphone imports have become increasingly difficult, strengthening its position as the country’s authorised distributor through higher market share, stronger pricing power and improved channel control. The company added that AI infrastructure projects are becoming an increasingly important part of its business in Kazakhstan as government and enterprise investment accelerates. Ukraine, which remains Asbis’ second-largest market, also continued to produce strong results despite the ongoing war. The company said demand for smartphones and other consumer electronics remained exceptionally strong. Asbis also reported improving conditions across the Middle East during June 2026, with strong double-digit growth driven by accelerating investment in AI infrastructure. The company said governments, cloud providers and businesses continue investing heavily in AI ecosystems, boosting demand for processors, graphics processing units, enterprise storage, solid-state drives and high-performance servers. It added that partnerships with major technology suppliers, including NVIDIA, AMD, Intel, Micron, Seagate, Toshiba and Supermicro, continue strengthening its position in the AI infrastructure market. By region, the Commonwealth of Independent States remained Asbis’ largest source of revenue during the second quarter. Western Europe became the company’s second-largest regional market for the first time. Among product categories, servers and server components recorded the strongest growth, with sales increasing 285 per cent year-on-year. Smartphone sales also performed strongly, rising 36 per cent compared with the second quarter of 2025. Among individual markets, Uzbekistan recorded the fastest sales growth, increasing 627 per cent year-on-year. Sales also rose 263 per cent in the Netherlands, 137 per cent in Ukraine, 111 per cent in Azerbaijan and 83 per cent in Kazakhstan. The company also announced several strategic developments during and after the second quarter. Its subsidiary Breezy opened a second retail outlet in Moldova as part of its international expansion in refurbished consumer electronics. Breezy also expanded into South Africa by launching an AI-powered door-to-door smartphone trade-in service through online marketplace Takealot. In Ukraine, Breezy introduced what the company described as the country’s first dynamic pricing platform for used electronics, allowing multiple buyers to bid for devices in real time. Asbis also expanded its cooperation with Eaton into Croatia. The company additionally signed an exclusive agreement in South Africa with SIMAGIC to distribute premium sim racing equipment. Its Canyon consumer technology brand entered all 65 Dedeman home improvement stores across Romania. Meanwhile, Asbis Bulgaria broadened its partnership with TCL by adding smartphones, tablets and multimedia projectors to its existing product range. Asbis Hungary was also appointed exclusive distributor of Philips headphones and earphones in Hungary. The company continued its dividend policy during the quarter by paying a final dividend of $0.35 per share. Combined with the interim dividend paid in November 2025, the total dividend from 2025 earnings reached $0.55 per share, representing the highest dividend in the company’s history. Management said it intends to continue maintaining a strong dividend policy while preserving sufficient cash to finance future growth. “We completed not only the best second quarter, but the best quarter since our inception,” the company’s management said. “Such results are an incredible achievement and prove that the company was well prepared for the AI revolution and its success did not come about by luck,” it added. “Our ambition for 2026 is to deliver the highest ever profitability to our shareholders and build strong foundations for the company’s next stage of growth,” management concluded.