Bechtle top line grows but staff surge eats into profit
UK, Netherlands and Germany lead European growth as VAR ups headcount
Pan-European reseller giant Bechtle enjoyed a five per cent revenue spike last year but an investment in headcount ate into its profits.
For the year ending 31 December 2012, the Germany-headquartered VAR's earnings before interest and tax (EBIT) dropped 6.8 per cent to €80.5m (£69.6m), on sales that rose by 5.1 per cent to €2.1bn – breaking the €2bn barrier for the first time ever.
Although business in some southern European countries lagged behind expectations, growth came in at "above average" in the UK, Netherlands and Germany.
In 2012, the reseller's headcount swelled by nine per cent, or 491 people, with most of the new hires coming in Germany. Of the firm's 5,970 staff, 428 are young trainees, which it claims represents a 20.2 per cent increase since 2011.
It blamed the lower EBIT on higher personnel expenses.
Domestic revenue jumped up nine per cent, while sales from abroad crept up by 2.5 per cent in 2012.
Its total reseller and managed services revenue grew by six per cent in 2012, with EBIT for the segment dropping 11 per cent when compared to 2011.
Its e-commerce segment enjoyed a sales spike of 3.4 per cent last year, while EBIT for that segment also slid, this time by 1.1 per cent.
The reseller claims its outlook for 2013 is positive, and it expects to perform above the industry average. It added that acquisitions will remain on the cards in its reseller and managed services division in order to "fill regional and technical gaps", but in its e-commerce segment, it plans to grow organically.
Thomas Olemotz, Bechtle's chairman, said he wants to grow profits this year.
"We enter the new fiscal year 2013 with confidence and the goal not only to outperform the market in terms of revenue, but also to return to growth as far as the earnings are concerned," he added.
UK managing director James Napp said: "We were proud to lead the European growth and intend to continue along this growth path as we add headcount and continue to skill up our sales teams."