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  • June 7, 2024

ACC Distribution’s Revenue Surpasses €300 Million with 9% Increase

In 2023, ACC Distribution, a leading electronics equipment wholesaler in the Baltic States, achieved a consolidated revenue growth of 9%, reaching €305 million. The Group's net profit for the year was €4.1 million, a significant 33% increase can be seen compared to the previous year.

The growth was driven by an expanded product range, improved services, and technological advancements.

“Despite persistent external challenges, such as stagnant Baltic economies and declining market demand for technology equipment in 2023, we have adapted to operating in a constantly uncertain environment,” says Žymantas Baušys, CEO of ACC Distribution. He attributes the success to the consistent implementation of the company’s strategy, particularly the enhancements in product range, services, and technology.

In 2023, over 16% of total revenue came from new product categories or brands. Investments made the previous year in inventory and warehouse management systems, as well as the enhancement of analytics tools, paid off in 2023. These improvements resulted in better meeting partners’ needs, increased process efficiency, and more effective working capital management.

Efficient working capital management has become especially crucial in the current interest rate environment. “By working closely with our partners, we thoroughly analyzed all working capital links to identify and eliminate any disruptions,” adds Ž. Baušys.

The implementation of new systems has also allowed for expanding the scope of services. “Our goal is to offer our customers more than just product distribution. For example, using a new warehouse management system, we introduced 3PL (third-party logistics) services for our customers. Additionally, we utilized artificial intelligence solutions to enhance customer service and streamline internal tasks,” notes the CEO, emphasizing the importance of innovation.

Aiming for Sustainability to Gain a Competitive Edge

ACC Distribution aims to leverage sustainability as a competitive advantage. “Sales of environmentally friendly energy products like solar modules, inverters, energy storage solutions, and electric vehicle charging stations are a growing segment of our portfolio. Sales of these products tripled in 2023, and we anticipate nearly 100% growth in 2024. Moreover, we are committed to introducing additional sustainable, energy-saving technology solutions to the market, which is` also experiencing growth,” says Ž. Baušys.

The CEO highlights a recent surge in interest from business partners regarding supply chain sustainability, partner reliability, and other sustainability factors. In 2023, the company formulated a sustainability strategy focusing on key areas such as the environment, social responsibility, and governance. It has established indicators and plans to set targets and begin implementation in 2024.

Record Employee Engagement

“The team is equally important for sustainable business growth,” notes Ž. Baušys. “We continuously assess employee engagement, and the latest results for 2024, scoring 90 points, set a new record and exceed expectations.” The CEO emphasizes that employees recognize values like responsibility, trust, open-mindedness, and continuous improvement which are genuinely embraced and practiced throughout the Acme Grupė.

Market Conditions Expected to Facilitate Growth in 2024

“While the technology market in 2024 is currently experiencing a slowdown, we anticipate growth in the latter half of the year. Especially in IT product categories, a new replacement cycle is emerging following market saturation during the pandemic, driven by technological advancements accelerating turnover,” says Ž. Baušys. He notes that the rapid progress of artificial intelligence is propelling advancements in software and components within electronic devices. For example, new computers are increasingly equipped with processors optimized for efficient AI task execution. The forthcoming Windows software update is also expected to drive hardware upgrades.

“ACC Distribution is aiming for revenue growth of at least 10% in 2024, a goal that is progressing positively. This growth is largely attributed to the ongoing expansion of the product range and enhanced collaboration with Baltic technology retailers,” concludes the CEO.


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