Westcon-Comstor reports 15 per cent increase in revenue to $1.85bn

Global tech distributor sees jump in H1 revenue as shift to software accelerates

Westcon-Comstor is reporting a 14.9 per cent year-on-year increase in first-half revenue to $1.85bn - a result they claim it's a company's record.

The distie posted double-digit revenue growth for the six months to 31 August 2023 (H1 FY24) across each of its three operating regions: Europe, Asia Pacific and the Middle East and Africa.

Gross profit saw a 33.4 per cent year-on-year jump to $203.7m, with gross margins increasing to 11 per cent due largely to more stable foreign exchange rates compared to H1 FY23.

The company's EBITDA also increased by 15.9 per cent to $59.7.

Cybersecurity and networking accounted for 90 per cent of Westcon-Comstor's revenue during the half-year period, with excellent growth in sales across the specialised portfolio for the selected markets in which the company operates.

Westcon-Comstor's H1 FY24 results highlight its ongoing shift to software and services-based revenues, which saw a 17 per cent year-on-year increase and now account for 45 per cent of the company's total revenue.

The distributor has seen a 65 per cent increase in its borrowing facilities since FY19 with a utilisation range of $800m to $1bn, leaving it with between $400m and $600m available to support future investment and growth.

"We're excited to report an excellent financial performance for H1 FY24 as we maintain our growth trajectory across all regions and accelerate our transformation into the world's leading data-driven technology provider and specialist distributor of cybersecurity and networking solutions," said David Grant, CEO at Westcon-Comstor.

"These results illustrate our ongoing ability to deliver solid, double-digit growth against a challenging macroeconomic backdrop, driven by our digital leadership within technology distribution and unique data-driven approach."

He added: "Looking ahead, our shift to software and services means we are ideally placed to thrive in the subscription-based, everything-as-a-service (XaaS) platform economy of the future.

"By continuing to innovate and add value at a strategic level, we will enable our channel partners to unlock new opportunities as together we embark on the next wave of our digital transformation."

Westcon recently announced the launch of its new marketplace which CTO Rakesh Parbhoo defined as the "central place for partners to interact with us".

Earlier this month, Westcon was the first tech distributor to achieve validation of its net-zero targets by the Science-Based Targets initiative (SBTi).