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.
“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.”