Baltic Export, Latvia, Markets and Companies, Retail, Technology

Elko grupa is one of the largest IT products' distributors in the Baltics, Eastern and Central Europe; the company's main business activity and key markets are outside Latvia. In terms of turnover, Elko grupa is the largest company in Latvia, informs LETA.

Commenting the results for the first six months, Elko grupa's management reports that the year has started with good results, and the company hopes that the current positive trends will continue. The company has been able to balance the structure of expenses in a short period of time, as well as to substantially change business processes at the company – procurement, credit policy, logistics and others, which had a positive effect on the company's results in the second half of 2009 and also this year. Taking into consideration the company's stable financial position, Elko grupa management believes that stable foundations have been created for successful business development of the company in the future.

The company's gross profit rose from LVL 4.62 million in the first half of 2009 to LVL 6.53 million in the first half this year. "Increase in turnover and gross profit proves that the IT market is recovering," said the company's management.

"To tackle the consequences of the economic recession, the company has introduced an austere saving regime and, as a result, the company has been able to reduce distribution and administrative costs. Taking into consideration the company's ability to adapt to the current market situation, as well as to complete all optimization processes, the company expects its turnover and gross profit to increase. At the same time, administrative costs are not expected to grow, whereas increase in distribution costs is projected to be smaller than the increase in turnover," the report said.

Elko grupa includes the companies Elko Latvija, Elko Kaunas UAB, Elkotech d.o.o., Elko Eesti AS, ElkoTech Romania SA, WestTech s.r.o., Elkotex d.o.o., Elko Trading Switzerland A.G., Elko Marketing Ltd. and Statex Consulting Ltd. Elko grupa holds controlling interest in all these companies.

Elko grupa was established in 1993 as Elko Riga by four young businessmen to commence distribution of computer components, computer assembly and sale on the Latvian market to both end-consumers and wholesalers.