Growth and profitability up year-on-year as enterprises respond to COVID-19 and accelerate digitalisation via key technologies, vendors and partners
LONDON, UK – 25th May 2021 – In its FY21 earnings announcement earlier today Datatec Limited reported Westcon-Comstor (Westcon International) revenue increased by 4.6% to US$2.6 billion, as a result of strong demand for networked cloud computing, remote access solutions for flexible working and virtual office environments, unified communications and enhanced cybersecurity.
Westcon-Comstor’s gross margins increased to 11.3% with higher margins in Europe and MEA while gross profit increased by 5.6% to US$291.0 million with improved results across all operating regions. Adjusted EBITDA (excluding restructuring costs) was US$52.5 million, again reflecting improvement across all regions.
“Our financial results demonstrate great resilience and agility, in what can only be described as an unprecedented year” commented David Grant, CEO of Westcon-Comstor. “But beyond the strong trading performance, I’m especially proud of our people. The flexibility and tenacity our team has shown in shifting to new business models and working practices has been impressive – and the results speak for themselves as our partnerships are stronger, our productivity enhanced, and innovation is being accelerated through our data-driven approach to distribution.”
Other highlights in Westcon-Comstor FY21 performance included;
- Improved net working capital performance to 18 days
- Net debt reduction from $48.7 million in FY20 to $19.0 million in FY21
- Significantly improved liquidity via the launch of new working facilities in Europe and Asia-Pacific regions
- Migrating nearly 3000 employees to a flexible working environment within 48 hours, whilst maintaining 99.99% availability of critical business applications
- Ensuring operational effectiveness of all its international logistics centres throughout the COVID-19 pandemic
- Launching its branded virtual event platform ‘Venu’ in May 2021 which has staged more than 40 events and hosted over 18,000 delegates worldwide
- Launching its Intelligent Demand (iD) programme which delivers insights on technology, industry and customer opportunities to improve ROI
- Winning an unprecedented 33 major vendor and industry awards
Westcon-Comstor is a global technology distributor operating in more than 70 countries. It creates business value and opportunity by connecting the world’s leading IT vendors with a channel of technology resellers, systems integrators and service providers. It combines industry insight, technical know-how and more than 30 years of distribution experience to deliver value and accelerate vendor and partner business success. It goes to market through two lines of business: Westcon and Comstor.
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Matt Denby/Florie Lhuillier