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ELKO sales exceed US$1.5 billion in 2017

by Stuart Wilson, Thursday 26 April 2018

ELKO's sales hit US$1.593 billion in 2017
ELKO’s sales hit US$1.593 billion in 2017

Emerging markets distributor ELKO’s sales hit US$1.593 billion in 2017 – up 9.1% year-on-year. Elko claims that entering new markets and expanding its product range helped it outstrip the overall market growth rate. Net profits for 2017 were up 62% year-on-year at US$14m – a net profit margin of 0.88%. Sales in Central & Eastern Europe were up 6% year-on-year at US$525m, with CIS sales climbing 5.3% to US$901m and Baltic States’ revenues jumping 8.8% to US$118m.

Sales in the Nordics from July to December 2017 hit US$49m. At the beginning of July 2017, the acquisition of 85% of shares in one of the leading distributors of hardware and electronics in Sweden, Gandalf Distribution AB, was completed.

Sales also began in the Polish market by attracting a local sales team for IT and consumer electronics. Starting with the third quarter of 2017, consolidated reports include results for both Gandalf Distribution AB and Poland.

Svens Dinsdorfs, CEO at ELKO Group, said: “We have 25 years of growth behind us, during which time we have increased in size and efficiency. ELKO has stood the test of time and can today count itself as one of the largest distributors of IT products, and solutions in Europe, and Central Asia. We secured last year’s results by improving our reach into existing markets, and by expanding geographically. We predict that this growth rate will not slow down in 2018 either.”

During the first half of 2017, ELKO went through a rebranding process by developing new positioning and a visual identity of its brand. The key factors driving the company’s growth were significant expansion of the product portfolio, and the addition of new distribution areas to existing distribution agreements. In 2017, the ELKO Group added more than 30 new brands, greatly diversifying the product portfolio.

Dinsdorfs added: “Customers and partners expect a new approach from distributors these days – to share knowledge about technologies, and the market. As the middle man, a distributor has to secure the kind of infrastructure, and environment that will advance a customer’s, and manufacturer’s growth in specific markets.”

ELKO plans several notable investments to improve effectivity this year by modernising, and automating business, and e-commerce systems.

“Not everything can, or should be automated, however. It is important to preserve the human element, which is something that automation cannot replace. We are convinced that it is only possible to gain the trust of our customers through relationships founded on a mutual exchange of knowledge, and with our ability to give individual attention, and customised services in every market in which we’re active,” explained Dinsdorfs.

ELKO’s portfolio now includes 210 IT manufacturers and the company provides a wide range of products and services to more than 7 700 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 30 countries across Europe and Central Asia.

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January, 2019

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