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ACTION S.A.: Partners are declaring their cooperation, waiting only for the official conclusion of the arrangement with creditors

ACTION Group has released its Q1 2020 consolidated report. The Group’s performance is in line with projections. The results show that the Company has successfully managed the restructuring, using the experience gained in this process to further strengthen its business during the COVID-19 pandemic.

Q1 2020 clearly showed that Action has all the elements that are essential to successfully navigate through challenging situations. These are the experience gained for being present in the market for almost 30 years, the ability to operate in a crisis, and the capacity to correctly assess the changing market situation and to adapt to it appropriately. The restructuring process that has been ongoing in the Company since mid-2016 has had one very positive side to it – it has strengthened the Company’s capacity to adapt to and pursue changes in the marketplace as they happen. This adaptability and resilience is appreciated by a growing number of partners who declare their readiness to start cooperation with Action once the arrangement with creditors is officially approved and duly executed.

The final court hearing concerning the approval of the arrangement concluded with our creditors, originally scheduled for the beginning of April, had to be cancelled due to the pandemic. However, we are already obtaining declarations from many manufacturers saying that the only thing they need to know before resuming their cooperation with us is the formal closure of the remedial proceedings. These declarations are very important for us as they show that we have passed the hard test of successful restructuring and our partners recognise that. I hope that soon the new date of the hearing for the approval of the arrangement will be announced, which will be the start of Action being fully back in the game – commented Piotr Bieliński, President and CEO of ACTION S.A.

Positive performance

In Q1 2020, ACTION Group generated a net consolidated profit for the shareholders in the amount of PLN 1,588 thousand, while Action S.A. in restructuring posted a net result of PLN 1,879 thousand.

New products in the offer

Recently, the Company’s product offer has been expanded with new product categories. Thanks to that, during the run on online shops related to the pandemic, Action B2B customers are able to source from the distributor not only IT equipment needed for remote work and entertainment, but also basic FMCG products and thus provide a comprehensive offer of essentials during the quarantine and isolation to their customers.

The epidemic has dramatically changed consumer attitude towards online shopping. The increase in demand was enormous, so we responded to these expectations both in Poland and Europe. The dynamics of growth allowed us to introduce new categories into our offer, including FMCG products. But this is only a part of the major changes spurred on by #stay home. The existing product categories available in our offer have also developed. Moreover, the consumer preference for online shopping is likely to stay with us for longer. And this is crucial for us as the width and diversity of our offer make us a comprehensive supplier for e-commerce across Europe, and our logistic efficiency and high level of process computerisation facilitate online trade for our B2B customers – said Sławomir Harazin, Vice-President of the Board, ACTION S.A.

Strong growth in the e-commerce segment

COVID-19 has brought a growth spurt to online sales. In Q1 2020, Action started cooperation with a provider of integrative e-commerce solutions for its partners. Thanks to this, as one of the few in the sector, it offered its resellers the possibility of two-way integration with the largest sales platforms in Poland, with automatic integration with the distributor’s offer, all on preferential terms.

The advantages in terms of a two-way integration, as well as the option to use a full shipment service from the distributor’s logistics centre (‘dropshipping’) were quickly appreciated by our partners across Poland. Consequently, their number is gradually growing. What we are most pleased about, however, is the very dynamic growth in trade with European e-commerce. We win with a good price and availability of goods, as well as a very wide base of B2B customers we cooperate with and whose trust matters most to us – added Sławomir Harazin, Vice-President of the Board, ACTION S.A.

Further development of the training offer

In Q1 2020, Action Business Center, a dedicated unit of VAD, or Value Added Distribution in Action, held over 30 training workshops and webinars for its clients. The meetings were mainly concerned with server solutions, Smart Home offer, as well as the distributor’s new segment of activities, i.e. photovoltaics.

We were the first on the market to offer online certification training within FIBARO Academy. A record high number of enquiries came from those interested in meetings on photovoltaic technology solutions. This goes to show that our partners are increasingly taking advantage of our comprehensive offer as they appreciate that, by listening to the needs of the market and our partners as well, we keep developing our business by expanding it into new prospective segments. Renewable energy serves as the best example of this, due to this area’s growing importance in the context of effects of climate change observed both around the world and in our country – explained Sławomir Harazin, Vice-President of the Board, ACTION S.A.

Date:: 2020-06-01 powrót