Latvia, Markets and Companies, Technology

Net profit of Elko grupa in H1 totalled USD 14.8 million (LVL 7 million), which means that the company's earnings this year were136% higher than in the respective period of time in 2007. Profitability of the enterprise in H1 2008 was 2.6%.

"The principal factor that contributed to the significant increase of Elko grupa's profit this year, were the successful operations in the CIS countries' markets, where we achieved a 61% turnover increase, compared with H1 2007," said the president of Elko grupa, Egons Mednis.

He added that Elko grupa's activities are strongly influenced by various economic and political factors in Latvia and other countries, where the enterprise carries out its business activity. An increase of demand for IT products was registered in all the regions, where Elko grupa operates, which are the central and eastern Europe region and CIS countries.

As of May this year, the company's bonds, worth EUR 6.5 million (LVL 4.56 million) are quoted at the Riga Stock Exchange. In June, Elko grupa became the official wholesaler in the Baltic States for the IT producer Micro-Star International and the navigation devices manufacturer Tom Tom. Also these factors contributed to the growth of company's financial indicators in H1.

As reported, the turnover of Elko grupa last year totaled LVL 525 million, which is LVL 168.4 million more than in 2006. Profit of the company last year amounted to LVL 16.4 million.

Elko grupa has branches in 14 cities, in nine countries: Latvia, Lithuania and Estonia, Russia, Ukraine, Romania, Hungary, Croatia and Romania. It is one of the largest distributors of "Sony" and "Intel" products in the Europe-Middle East-Africa region.

This year the enterprise plans to increase its turnover by 30-35%.

Elko grupa is owned by Latvian and foreign companies, as well as private individuals in Latvia.