EMEA is star performer for Avnet in FY15

Top and bottom line on the up despite currency headwinds

The EMEA region was the stand-out region for Avnet as its 2015 fiscal year brought saw profits swell. The enhanced bottom line came despite the strong dollar putting a strain on sales growth and margins throughout the year.

For the 12 months to 27 June the broadliner grew reported sales 1.5 per cent to $27.9bn (£17.96bn). In constant currency, the growth came in at 5.4 per cent. GAAP operating profit rose 4.8 per cent on the prior year to $827.7m.

Chief executive Rick Hamada said: "The improvement in profitability was led by our EMEA region, where both operating groups grew operating income double digits and operating income margin increased by greater than 50 basis points, despite the currency headwinds that negatively impacted our reported results."

For the year's closing quarter Avnet saw reported revenue decline 3.6 per cent to $6.8bn - although the top line increased 3.1 per cent in constant currencies.

The distributor's components-based Electronics Marketing unit's reported Q4 sales came in more-or-less flat at $4.3bn, despite seeing turnover in the EMEA region plummet 10.7 per cent to $1.25bn.

Fourth-quarter turnover at the value-focused Avnet Technology Solutions business dropped 9.2 per cent to a little less than $2.5bn. EMEA was the unit's worst-performing region, with sales declining 16.3 per cent to $624.8m.

For the first quarter of the 2016 fiscal year the distributor is expecting global sales to come in between $6.4bn and $7bn, with Electronics Marketing chipping in $4.15bn to $4.45bn, and Technology Solutions contributing between $2.25bn $2.55bn.