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The company’s management explained the turnover growth in its report by organic growth and by consolidating the results of Gandalf Distribution into the Elko Group, starting from July 2017.

The company’s gross profit reached EUR 45.441 million, an increase of 33.5% compared to the previous year. „The increase in gross profit reflects the company’s focus on withdrawing from the outsourcing of some business operations, mainly in the CIS region, and on optimizing operations,” the company’s management reported.

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 during the nine months under review. Consequently, Elko managed to grow faster than the market as a whole.

During July 2017, the company prolonged its current syndicate credit line. In July, the deal for acquisition of an 85% shareholding in Swedish company Gandalf Distribution, one of the leading distributors of computer and peripheral products in Sweden, was completed. The company also extended its business presence to Poland by outsourcing a local sales team for the distribution of IT and consumer products.

In the first nine months of 2016 Elko Grupa generated EUR 840.293 million in sales and earned EUR 5.718 million in profit.

Elko Group belongs to several legal entities, including investment fund Amber Trust. The company’s bonds are listed on the Baltic Bond List of the Nasdaq Riga stock exchange.