Exclusive Networks reports six per cent gross sales growth carried by EMEA business

In its Q1 24 results the French distie grew gross sales to €1.255bn as cloud and software business expanded

EMEA continued to be the biggest growth driver in Exclusive Networks' Q1 2024 results as the VAD reported a 6.4 per cent increase in gross sales to €1.26bn (£1.07bn).

The VAD's gross sales mix grew towards software licenses and support & maintenance, in line with its existing strategy.

Hardware decreased to 24 per cent of the group's sales (vs 27 per cent in Q1-23), software was 50 per cent (vs 47 per cent in Q1-23) and support & maintenance stood at 26 per cent (26 per cent in Q1-23).

Cloud accounted for 34 per cent of the Exclusive's sales in Q1-24, up 6 points compared to Q1-23, in line with its digital growth strategy.

Overall IFRS revenue reached €393m, down one per cent on a reported basis, which the distie attributed to the high basis of comparison of Q1-23 hardware sales, with hardware decreasing in the sales mix.

The majority of growth (3.8 per cent) was driven by existing vendor relationships in geographies where the distributor already operates.

The balance of growth came from vendor expansion, partly through the expansion of existing vendors into new geographies (0.9 per cent) and partly from new vendor relationships (0.7 per cent), as well as M&A (one per cent).

Jesper Trolle, CEO at Exclusive said: "We have delivered a solid start to the year…mostly driven by continued momentum in our EMEA business.

"This is a robust outcome in light of the macroeconomic backdrop and the exceptional impact of the supply chain in the first quarter of 2023.

"Acquisitions remain an important growth lever for Exclusive Networks, having completed more than 20 deals in the last decade."

The distributor, in fact, recently announced acquisition of NextGen to further its expansion in APAC.

"We remain committed to exploring ways of accelerating our growth and expanding our market potential through strategic acquisitions that broaden our portfolio and geographic footprint," Trolle added.

"The evolving threat environment, influenced by geopolitical tensions, international conflicts, the adoption of genAI, and regulatory demands for increased disclosure of cyberattacks, continues to position cybersecurity as a top priority for business leaders worldwide.

"As previously indicated, growth is expected to accelerate in the second half due to ongoing demand for cybersecurity and our scalable model supports our confidence in meeting our guidance for 2024."