Westcon-Comstor (Westcon International), a global technology provider and specialist distributor, today posted a 14.9% year-on-year increase in first-half revenue to a record US $1.85 billion (H1 FY23: US $1.61 billion).
The company, which connects the world’s leading IT vendors with a channel of technology resellers, systems integrators and service providers, reported double-digit revenue growth for the six months to 31 August 2023 (H1 FY24) across each of its three operating regions: Europe, Asia-Pacific (APAC) and the Middle East and Africa (MEA).
Gross profit saw a 33.4% year-on-year jump to US $203.7 million (H1 FY23: US $152.7 million), with gross margins increasing to 11.0% (H1 FY23: 9.5%) due largely to more stable foreign exchange rates compared to H1 FY23.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 15.9% to US $59.7 million (H1 FY23: US $51.5 million).
Cybersecurity and networking accounted for 90% of Westcon-Comstor’s revenue during the half-year period, with excellent growth in sales across the specialised portfolio for the selected markets in which the company operates.
Westcon-Comstor’s H1 FY24 results also highlight its ongoing shift to software and services-based revenues, which saw a 17% year-on-year increase and now account for 45% of the company’s total revenue.
The distributor has seen a 65% increase in its borrowing facilities since FY19 with a utilisation range of US $800 million to $1 billion, leaving it with US $400 million – $600 million available to support future investment and growth.
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“We’re excited to report an excellent financial performance for H1 FY24 as we maintain our growth trajectory across all regions and accelerate our transformation into the world’s leading data-driven technology provider and specialist distributor of cybersecurity and networking solutions.”
"These results illustrate our ongoing ability to deliver solid, double-digit growth against a challenging macroeconomic backdrop, driven by our digital leadership within technology distribution and unique data-driven approach," said David Grant, CEO at Westcon-Comstor.
He added: “Looking ahead, our shift to software and services means we are ideally placed to thrive in the subscription-based, everything-as-a-service (XaaS) platform economy of the future. By continuing to innovate and add value at a strategic level, we will enable our channel partners to unlock new opportunities as together we embark on the next wave of our digital transformation.”
