TD SYNNEX delivers mixed Q1, but Europe shows signs of improvement

CEO Hume cites 'expansive portfolio and improving IT demand' as growth drivers

TD SYNNEX achieved revenue of $14bn (£12bn) and net income of $172m in its fiscal first quarter.

The distie also announced a new $2bn share repurchase programme.

Revenue fell within projected range between $14bn and $14.7bn, although it was down 6.7 per cent year on year.

"We generated strong results in our fiscal first quarter, driven by our expansive portfolio and an improving IT demand environment. This resulted in record margins, EPS at the upper end of our expectations, healthy free cash flow and robust capital returned to shareholders," said CEO Rich Hume (pictured).

"We are leveraging our strong relationships across the business partner ecosystem along with our robust core and strategic technology portfolios to accelerate growth for our partners, while continuing to produce strong returns for our shareholders."

Non-GAAP gross billings totalled $19.3bn.

Gross margin and non-GAAP gross margin rose by 57 and 52 basis points, respectively.

Net income reached $172m, up 3 per cent on Q1 2023. Cash provided by operations surged to $385m with free cash flow at $344m.

Europe continues to struggle, but operating income and margin improve

In Europe, Q1 revenue amounted to $5.1bn, reflecting a 7.3 per cent decrease compared to Q1 2023's $5.5bn.

On a constant currency basis, revenue witnessed a steeper decline of 9.5 per cent year on year.

The company noted that a higher proportion of revenue was presented on a net basis, resulting in a negative impact on revenue of approximately 2 per cent year on year.

Non-GAAP gross billings in Europe stood at $6.6bn, down 5.4 per cent from the $7.0bn reported the prior Q1.

Operating income in Europe amounted to $108bn, a notable increase from the $88bn recorded in the prior fiscal first quarter.

Similarly, non-GAAP operating income reached $148m, showing improvement from the $143m reported in the prior fiscal first quarter.

Operating margin in Europe saw a rise to 2.1 per cent, up from 1.6 per cent in the prior fiscal first quarter.

Additionally, non-GAAP operating margin increased to 2.9 per cent, compared to 2.6 per cent in the prior fiscal first quarter.