B2B boom boosts Systemax in Q2

Sales grow and losses narrow for Misco owner in second quarter

A strong performance in the B2B sector allowed saw resale giant Systemax to grow sales and narrow operational losses during 2014's second quarter.

The US-headquartered outfit saw global revenue for the three months to 30 June increase 3.2 per cent year on year to $831.1m (£491.8m), although the top-line rise would have been just 1.4 per cent without the favourable effect of currency fluctuations. Gross margins stood at 14.8 per cent, four tenths of a point up on the corresponding period last year, while operating losses came down from $6.8m to $5.4m.

Systemax's B2B operations grew combined turnover 10.1 per cent to $626.1m, offsetting a 13.5 per cent decline in consumer revenue, which came in at $205m. Its EMEA operation - the biggest part of which is UK channel heavyweight Misco - second-quarter sales spiked 9.1 per cent annually to $277.1m.

Chief executive Richard Leeds said: "In the second quarter all three of our B2B businesses [US, EMEA and Industrial Products] delivered revenue growth and improved their bottom line on an adjusted basis. We also made additional progress on reducing the losses of our consumer business. Our consolidated performance reflects a modest revenue gain, improved gross margin and the generation of positive adjusted operating income for the second consecutive quarter."