Acme Grupė operating profit grew by 23% and exceeded 25 million Euros
The consolidated revenue of Acme Grupė, one of the largest company groups in the Baltic States that operates in the distribution of electronics, films, and development of renewable energy projects, increased by 7% to EUR 802 million in 2023 (compared to EUR 747 million in 2022). The Group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2023 amounted to EUR 25.4 million, which resulted in a 23% increase compared to EUR 20.7 million in 2022.
“Acme Grupė’s profitability in 2023 was driven by the successful, growth-oriented initiatives initiated by the Group’s companies. Despite the fact that the market for companies involved in distribution of electronic devices was shrinking, the introduction of new brands and intensive development of existing ones, as well as the strengthening of the efficiency of business processes, made it possible to ensure a profitable year,” says Sergej Artemiuk, the CEO of Acme Grupė. In 2023, exports accounted for 50% of the Group’s total turnover. Export was directed to 30 foreign countries.
According to S. Artemiuk, the EBITDA growth was also driven by the accelerating activity of renewable energy companies, with the active development of both solar and wind parks in Lithuania. Last year, energy production capacities were expanded, and the first revenues were obtained from the sale of solar parks. Currently, the scope of solar projects under development is 118 MW, and wind projects amount to 53 MW.
The successful overall result was as well influenced by the exit from the quarry business. Last year, Acme Grupė sold ST Investicija, a group of companies that developed sand quarries in Lithuania. This has led the Group to focus more on its core activities and renewable energy projects.
Demand for Apple devices grew
AVAD Baltic, a company owned by Acme Grupė, which distributes Apple brand devices in the Baltic States, has seen a 5% growth in sales revenues to EUR 483 million in 2023. In 2022, revenues were €460 million.
According to BRC Group, iPhone sales in the Baltics grew by 16% during a year and amounted to EUR 326 million in 2023. MacBook notebooks also strengthened their position in the Baltics, with market share in units growing from 17% in 2022 to 20% last year. Apple Watch also had a successful year in the smartwatch category, achieving a 47% market share in the value smartwatch category.
Trade in technological devices has not stopped
According to S. Artemiuk, although the Baltic market for technological devices experienced a decline in demand in 2023, ACC Distribution, one of the largest distribution companies in the Baltic States involved in the distribution of technological devices, grew and maintained its revenue growth, grew the new categories and intensified process efficiency. Consolidated companies’ revenue in 2023 grew by 8.7% to EUR 304.6 million (EUR 280 million in 2022).
In 2023, more than 16% of total revenue came from new technology brands or product categories. While investments made a year ago in inventory and warehouse management systems and strengthening of analytic tools have paid off in 2023 in terms of better meeting partners’ needs, streamlining processes and managing working capital.
Sales of renewable energy equipment are becoming an increasingly significant part of ACC Distribution’s portfolio. In 2023, sales of these products grew more than 2 times. Last year, the Group of Companies successfully developed its activities with sustainable energy brands such as Trina Solar panels, Sungrow and Huawei inverters and energy storage, Wallbox electric vehicle charging stations and other brands in this category.
Solar and wind parks generated income
The activities of Acme Solar Group, a group of companies developing solar and wind parks, expanded rapidly last year. Acme Solar Group, which consists of 10 companies, grew its consolidated revenues almost 6 times to EUR 9.6 million, with revenues of EUR 1.7 million in 2022. This revenue growth is mainly due to three solar parks with a total capacity of 7.7 MW, which were installed in 2023 and sold to remote prosumers. Acme Solar Group will continue to provide maintenance and administration of these parks. The electricity generated by the sold parks is now used by more than 1,000 customers.
“The next three years will be a period of intense growth for the Acme Solar Group, during which a 170 MW of solar and wind energy projects that are currently under construction, will be fully implemented: 118 MW of solar parks and 53 MW of wind parks,” says S. Artemiuk.
Positive trends in the film industry monitored
ACME Film’s revenues in 2023 grew by 42% and amounted to almost EUR 9 million. ACME Film screened 63 films in Lithuanian cinemas, compared to 75 films in 2019.
“Overall, 2023 has seen positive trends in the film industry, with the number of films and screenings approaching pre-pandemic levels, audiences returning to cinemas, and increasingly choosing to watch ACME Film’s films. Total revenues of the Lithuanian film industry grew by 18%. The Lithuanian cinema market is expected to grow by 4% in 2024, ” the Group’s CEO says.
Last year, the films that attracted the most viewers were “Barbie” and “John Wick: Chapter 4”.
Electronic device repair services grew
The revenue of Servisa ICT, a company of Acme Grupė engaged in maintenance and repair of electronic devices, grew by 40% to EUR 4.5 million last year.
Service revenue was driven by new partnerships with brands such as Xiaomi, Motorola, GigaByte, Electrolux, AEG and growth in non-contract electronic device repair volumes.
“The market for computer and other IT devices is stable and growing quite moderately, which is why last year we focused on Servisa ICT’s services in the market for repair of large household appliances and consumer electronics. This year, the company plans to open a customer service point in Klaipėda. Until now, the company has had customer service points in Kaunas and Vilnius,” says S. Artemiuk.
Development of real estate projects
ACME NT, the real estate maintenance and administration group of companies, grew its consolidated revenue by 15.5% to EUR 1 million last year. The moderate growth in revenues was primarily driven by the increasing number of managed real estate properties, leading to an expansion of provided services and facilities. This included the company starting to manage Acme Grupė’s office in the capital city. Additionally, the company completed the preparation of a real estate project in the seaside region for its further development.
Changing the business management system
This year, the Group will focus on a transformation project that has already been launched: implementation of a scalable ERP system (Enterprise Resource Planning). The project is expected to take around three years to complete.
Last year, Acme Grupė paid equal attention to business risk management and regulatory compliance, the implementation of competition law and anti-corruption provisions, as well as the management of business partner and sanctions compliance risks. Systemic developments in sustainability are also continuing, with the adoption of a sustainability implementation strategy in 2023 and the collection of data for sustainability indicators.
Acme Grupė ended 2023 with a renewed brand and visual identity. Acme Grupė positions itself as an international partnership hub, where different business partnerships, including social partners, as well as partnerships between the Group’s companies and team members are established and grow.