Bechtle Q3 results: German reseller reports six per cent business expansion

Business volume reached €1.9bn and workforce saw 18.3 per cent surge led by acquisitions

German reseller, Becthle, reported a six per cent increase in business volume to €1.9bn in its third quarter of 2023.

Earnings before tax (EBT) also surged by 6.4 per cent to €93.9m, driving EBT margin from 6 per cent to 6.3 per cent.

By 30 September 2023, Bechtle employed 14,840 individuals, marking a year-on-year increase of 1,051. Notably, the company's incoming orders during the third quarter surged by 18.3 per cent.

Dr. Thomas Olemotz, chairman of the executive board of Bechtle, noted: "Although our medium-sized customers, in particular, are still rather reluctant to invest, we are able to compensate this situation by means of the positive performance of our software and service business as well as the stable demand of our large customers and public-sector clients. Moreover, the trend observable in incoming orders supports our positive outlook for the coming months."

Bechtle's IT system house and managed services segment once again carried the ship, experiencing a 10.8 per cent business volume increase, mainly attributed to growing software and service projects.

Revenue within this segment grew organically by 5.8 per cent to €996.2m.

Demand from large customers and public sector clients remained high. Especially complex digitisation projects for the transformation of IT architectures are driving the system house business.

EBIT within this segment rose by 13.8 per cent to €66.3m, accompanied by a raised EBIT margin of 6.7 per cent, up from 6.2 per cent.

The IT e-commerce segment faced a 3.5 per cent decline in business volume and a 7.5 per cent drop in revenue.

Medium-sized customers delaying conventional IT infrastructure projects contributed to this decrease.

Although EBIT dropped by 3.3 per cent, the EBIT margin increased to 6.2 per cent.

Bechtle's workforce in Europe grew by 7.6 per cent primarily through acquisitions.

Excluding acquisitions, the increase would have been 3.9 per cent.

In September, the reseller welcomed 299 apprentices and integrated degree programmes participants totalling 865 trainees.

Operating cash flow in the first nine months of 2023 reached €190.2m.

Significant enhancements in inventories and trade receivables contributed to this improvement, Bechtle claimed.

Full-year results

Looking ahead to the full-year results, Bechtle said it remains optimistic, anticipating alignment with their year-long expectations.

"Although we currently still lack positive economic impulses spanning all business segments, we are ready to accompany our customers in all aspects of the digital transformation," said Olemotz.

"Our acquisitions in recent months have further strengthened our market position and our competitive position in Europe.

"I am therefore convinced that, despite the challenging economic framework conditions that exist at the moment, we will continue to grow and gain market shares."