Avnet sales boom as Bell integration gathers steam

New York-listed distributor unveils 42 per cent hike in quarterly revenue

Roy Vallee: The integrations of Bell and Tallard are proceeding as planned

Hot on the heels of Arrow’s barnstorming Q3 results, rival Avnet has posted a 42 per cent boom in quarterly revenue as it indicated its integration of Bell was going to plan.

For its fiscal first quarter for the three months to 2 October, the 16,000-strong behemoth's revenue hit $6.18bn (£3.88bn), compared with $4.36bn a year earlier.

Avnet made three acquisitions in July which will add about $4bn to its annual sales, but the New York-listed distributor also achieved 26 per cent year-on-year organic growth during the quarter.

Most of that came from the components side of its business, with Technology Solutions (TS) sales up a more modest 11.3 per cent with the contribution of acquisitions stripped out. TS sales in EMEA grew 44.6 per cent to $807.8m including acquisitions, with organic growth standing at 1.7 per cent.

GAAP net profit nearly trebled to $138.2m, topping expectations.

Chief executive Roy Vallee said Avnet would be better positioned to deliver improved results after it completes the integration of Bell and its other acquisitions, and fully realises the anticipated $60m in related “synergies”.

“The integrations of Bell and Tallard are proceeding as planned and we are very comfortable with our enterprise-wide expense synergy target related to Bell,” Vallee said.

He added: “On the bottom line, adjusted diluted earnings per share more than doubled year over year to $0.93 and return on capital employed was within our target range of 14 to 16 per cent for the fourth consecutive quarter.”