Operating profits for European distributor ALSO have seen a huge spike after adopting IRFS 16 at the start of the year.
The new standard removes the distinction between finance and operating leases, which means all leases, including short-term operating leases, are now recorded on a company's balance sheet as assets and liabilities.
While the new accounting method is expected to have a limited impact on reported profits before tax, other measures of profit - EBITDA and EBIT - are set to increase significantly.
Under the new standard, ALSO's EBITDA inflated by €11.94m, leading to a 36 per cent year-on-year spike to €76.29m. The Swiss distributor's EBITDA was €64.4m before applying the new standard, a 15 per cent increase year on year.
Operating profits also ballooned significantly under IRFS 16, increasing by 19.4 per cent to €57.81m.
Revenues for the first six months of the year surged by 14 per cent to €4.77bn. ALSO Supply Chain business grew revenues by 13.8 per cent, Solutions by 15.8 per cent and As-a-Service by 12.7 per cent.
ALSO closed acquisitions of two European distributors in the first six months of the year. It acquired €40m-turnover Croatian player RECRO and IoT specialist AllThingsTalk in the Netherlands.
ALSO's acquisitions in Slovenia, Belarus and Ukraine, as well as pending deals for Solytron in Bulgaria and ABC Data in Poland, will mean ALSO is present in 13 eastern European countries.
The Swiss distributor has ambitions to hit 20 per cent market share in eastern Europe as a result of its aggressive expansion strategy.
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