ALSO Group reaps the rewards but feels the sting of global trends in FY22 results

The Swiss distributor’s supply business were hit by global supply chain issues while its services earnings shot up more than 40 per cent

Pan-European distribution giant ALSO Group posted its full year 2022 earnings which have been influenced by both positive and negative global trends.

Net sales (before PvA) grew modestly from €12.4bn to €12.6bn in FY22.

The company pointed the finger at the Chinese government's choice to abandon its zero-Covid policy leading to tension in region and impacting the availability of goods.

Also called the supply chain in the country "unstable", adding that it has hit the Swiss firm's supply business, which dropped 5.3 per cent to €8.1bn in 2022.

On the other hand, with companies upping investments in automation, digital transformation, cybersecurity and cloud-first solutions, coupled with a strong focus on IT services, both ALSO's Solutions (€3.5bn) and Services (€918m) lines grew for the year by 11 per cent and 43 per cent respectively.

"The cloud-based as-a-service business and digital platforms are gaining more and more momentum," said ALSO Holding CEO, Gustavo Möller-Hergt.

"The Solutions segment is growing too, as IT services are becoming increasingly important in times of scarce resources.

"Through the ALSO ecosystem, our excellent position in the cloud business, and our digital platforms, we can optimally support the resellers in both developing their business and serving the demand of end customers.

"By increasing operational excellence, further accelerating growth and through Buy & Build, we have set the course for ALSO's future profitable growth."

EBIT managed to climb nine per cent to earn €236m while net profit for the group dipped 1.2 per cent to €152m after three consecutive years of double digit growth.

The Swiss distributor contributed its 2022 uptick to its international expansion activities, namely its acquisition in Hungary of Ramiris' IT Division; the buy of Italian VAD Executive Group and Spanish VAD IREO Soluciones y Servicios.

ALSO launches in the UK

More recently the group opened its doors for the first time in the UK.

It plans to initially recruit around eight UK staff to support the local roll out of its cloud commerce marketplace, the €12.4bn-revenue Swiss firm confirmed to CRN.

ALSO claims UK partners can use its cloud marketplace for provisioning, account management, license renewals, billing, analytics, as well as white label solutions with their own branding, giving them full control and offering their customers subscription-based self-serviced access to the ALSO portfolio.