Bechtle shows signs of COVID recovery in Q3

Preliminary quarterly numbers reveal DACH reseller has recovered from the peak of COVID-19 disruption to orders

Bechtle expects both its top and bottom line to rise in Q3, marking a recovery from the summer during which the reseller faced extreme pressure as COVID-19 lockdowns hit hard.

Preliminary figures from July to September, show Bechtle anticipates revenue to increase by 7 per cent year on year to €1.37bn, while operating income (EBIT) will shoot up double-digits by 20 per cent to €70m.

EBIT margin is expected to also rise slightly to around 5 per cent.

The €5.37bn Neckarsulm-HQ VAR has 75 IT system houses in Germany, Austria and Switzerland and 24 e-commerce companies in 14 countries.

In its Q2, Bechtle said that prolonged lockdown measures enforced across the group to contain the spread of COVID-19 had made a severe impact on its financials.

However, CEO Thomas Olemotz reconciled the business impact by reassuring investors that despite stagnant growth, the reseller was still growing.

"The fact that we were able to continue growing during a quarter when the economy as a whole shrank by more than 10 per cent is a major success," Olemotz said in a statement.

From April to June, Bechtle's revenue did rise by 3.9 per cent year on year to €1.3bn, with EBIT also up by 4.3 per cent to €59.5m.

However, its IT e-commerce division saw revenues tumble by 6.6 per cent to €416.6m. EBIT on that side of the business also fell by 15 per cent to €19.4m.

Bechtle's FY2019 revenues were over €5.37bn.

The company will publish its full Q3 report on 11 November.

The quarter will cover the period during which Bechtle's executive board revealed it's pushing for a shareholder vote on whether to become a public European company.

The decision will be put to a vote at the the VAR's next annual general meeting scheduled for 15 June 2021.

Last month Bechtle made its one hundredth acquisition through its buyout of Austrian software developer dataformers.