Bechtle rises again in Q2

The UK, Benelux, and German public sector helped lead the VAR to the light at the end of the financial tunnel

Germany-based VAR Bechtle is showing signs of recovery in Q2 FY25, bringing an end to the downturn that began in Q1 FY24.

Revenue for the quarter reached €1.49bn (£1.29bn), a 0.8 per cent increase from €1.47bn during the same period last year.

On the other hand, EBT plummeted 20.3 per cent year-on-year, falling from €83.84m to €66.78m.

The modest rise in performance was reportedly driven by strong results in the UK, Benelux, and growing demand from public-sector customers in Germany, even though domestic revenue dropped 3.4 per cent, from €879.43m to €849.2m.

Germany’s public sector business volume rose by five per cent during Q2.

Bechtle’s international operations saved the day, rising 7.2 per cent to €637.98m, up from €595.39m in Q2 FY24.

These gains were fuelled by recent acquisitions across Europe.

In late June and early July, the VAR acquired IT service provider E-Storage and Grupo Solutia Tecnología in Spain.

Together, these buyouts contributed €123m in revenue and added 675 employees.

Bechtle’s workforce also grew organically by 0.5 per cent, representing 70 new hires.

By the end of the quarter, the group employed 15,608 people, a year-on-year increase primarily driven by acquisitions.

Although the quarter ended on 30 June, Bechtle stated the positive trend has continued into July and is expected to influence Q3 results.

“Although we have yet to reach the ambitious growth targets we have set ourselves and firmly believe we can achieve, the second quarter’s performance has put us back on track towards growth,” said Dr Thomas Olemotz, CEO of Bechtle.

Sunny forecast with threat of cloud

While it appears that Bechtle is finally seeing light at the end of the tunnel, economic uncertainty in markets such as Germany and France continues to impact customers’ appetite for investment.

Bechtle currently forecasts earnings to fall within a five per cent decrease to a five per cent increase.

Olemotz added: “In the first half-year, a gap emerged in earnings that we are determined not only to narrow but to close by year-end.

“It’s an ambitious yet achievable goal, provided the positive momentum from the second quarter continues to build over the coming months, particularly driven by renewed impetus in our public-sector business.”

These latest results are in line with the firm’s predicitons in Q1, with the CEO stating in May that the business was “well positioned to return to more profitable growth”, especially thanks to public-sector customers in Germany.

Bechtle UK ranks number 35 in CRN’s Top VARs list.