ELKO Group’s turnover exceeds USD 2 billion

Rampant digitisation, which has only intensified in the wake of the pandemic, has boosted IT and home appliance sales. As a result, the operating financials of ELKO Group (which includes WESTech) for January to November showed a record turnover of USD 2 billion.

Thirteen years ago, in 2007, ELKO Group – IT and home appliance distributors – became the first Latvian company whose turnover exceeded the USD 1 billion mark.

“This year, at the start of the busiest season of the year, the group has already reached the 2 billion mark. At the end of last year, we realised that the goal to exceed 2 billion was very ambitious. At the beginning of this year, when almost all supply chains were disrupted and there was great uncertainty, especially in Russia, we were prepared to suffer significant losses. However, the following events surprised many. Businesses and industries have been forced to go digital. The fact that people have been spending more time at home has consolidated demand for goods that are not usually among people’s basic needs during a crisis. This is the first crisis in which we are in a favourable position,” says Svens Dinsdorfs, CEO of ELKO Group.

There was growth on all markets, without exception. Total turnover is 30% higher than in the same period a year ago. The biggest surprise is Sweden, where turnover grew by 143%.

That market objectively shows a deficit in certain product groups, for example in the personal computer segment. The interruption of manufacturing capacity and supply difficulties caused by the pandemic made it difficult to meet the unexpectedly high demand. Shipments are being delayed and there is also more competition. For IT wholesalers, a major challenge in the past was the ability to ensure the quick turnaround of goods to avoid technological obsolescence. Old stock in warehouses is not on the agenda at the moment. There is currently a shortage of goods.

“Managing large-scale and rapid growth is challenging. However, we are not naive and we realise that such periods of growth will not last forever. There will be market saturation, the market will slow down, and we need to be able to spot this in time. Each period requires its own tactics. Even at the beginning of the year, when everything was falling apart around us, it was important not to stop but rather to keep the future in perspective. Crises come and go, and this one is not the first or the last, so we consider it part of a natural cycle. Only one thing is clear – we must not stop,” Dinsdorfs adds.

WESTech is part of ELKO GROUP.