The key takeaways from Exclusive's FY23 results

Gross sales were up 14 per cent while revenues grew six per cent

Exclusive Networks has reported strong growth in its 2023 financial results, with gross sales reaching €5.1bn (£4.37bn), up 14 per cent, and revenues of €1.5bn (£1.28bn), up six per cent.

Net margin also saw an increase of 14 per cent to €468m in FY-23.

The bulk of Exclusive's growth came through existing vendors in current geographies (13.9 per cent), vendor expansion (0.5 per cent), composed of vendors entering into new geographies (0.3 per cent) and new vendors (0.2 per cent).

The gross sales mix shifted towards the software and support & maintenance side of the business, confirming the relevance of value proposition.

Hardware decreased to 25 per cent of the group (vs 27 per cent in FY22), while software was 49 per cent (in line with FY22) and support & maintenance was up at 26 per cent (vs 24 per cent in FY22).

The VAD's cloud-based business accounted for 32 per cent of the group in FY23, up four points compared to FY22 and in line with the company's digital growth strategy.

Recent acquisitions represented 0.8 per cent of growth in 2023 and VP of EMEA, Paul Eccleston told CRN this would still be the case going forward.

"Acquisitions are a key part of our growth strategy. Over the last decade we have acquired and integrated 20 businesses into the Exclusive family. We remain acquisitive, we have a healthy pipeline and several ongoing discussions with potential acquisition targets."

Exclusive Networks made two acquisitions in 2023: Spanish VAD Ingecom and specialised global cybersecurity services provider Consigas.

Eccleston said despite the economic challenges Exclusive has a proven track record of profitable growth having achieved compound annual growth of 31 per cent in gross sales over the last decade.

"This gives us tremendous momentum in the market. Add to this our longstanding and deep partnerships with industry leading vendors and channel partners, our innovative services portfolio and our specialist cybersecurity focus, we have a unique and compelling proposition."

EMEA remained the biggest market for Exclusive (78 per cent of the group) with gross sales coming at €4bn, up 14 per cent year-on-year.

The region benefitted from a consistent positive market demand, Exclusive claimed.

It also reported profitability outpacing top line growth and increasing significantly, with adjusted EBIT rising to €191m, up 19 per cent year-on-year.

2024 predictions

Looking ahead to the next financial year, Exclusive's FY24 outlook is that the group will continue to grow in a range between ten per cent and 12 per cent, at constant currency, with net margin in the range between €500m and €515m.

Adjusted EBIT is expected to be in the range of €200m and €210m, and adjusted operating FCF above 80 per cent of adjusted EBITDA.