Tech Data enjoys profit rocket in Q2

Net profits almost double at global distie

Profits at Tech Data almost doubled annually in Q2, but European sales slumped over the same period.

In a trading statement published this afternoon, the distie reported a 94.4 per cent boom in GAAP net profit to $76.4m (£48.8m) compared with the year-ago quarter, on sales which fell 3.8 per cent over the same period to $6.6bn.

In Europe, sales slumped seven per cent annually to $3.8bn, while sales in its Americas region crept up one per cent to $2.7bn. It claims that excluding net sales generated in Chile, Peru and Uruguay – markets it previous announced it is exiting – sales in the Americas rose about five per cent over the same period.

Tech Data's chief executive Robert Dutkowsky said the results show the company's strategy is paying off.

"Tech Data delivered excellent results for the second quarter of fiscal 2016," he said.

"Throughout the quarter, we focused on optimising our operations and capturing the opportunities in a dynamic IT market. This focus, as well as great execution by our teams in both regions, produced solid year-over-year sales growth in local currencies.

"This strong and balanced performance highlights our team's ability to respond to market demand, the resiliency of our business model, and the effectiveness of our state-of-the-art global IT platform, all of which enable Tech Data to produce outstanding results for our customers, vendor partners and shareholders."