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Reseller Bechtle reported its second-quarter 2024 results, revealing a 2.3 per cent dip in revenues to £1.4 billion.
The company attributed this decline to “adverse macroeconomic conditions.” Despite the challenging environment, Bechtle increased its business volume by one per cent, reaching £1.8 billion.
Earnings Before Tax (EBT) figures fell short of the previous year’s high benchmarks, totaling £83.8 million (compared to £93.8 million). The EBT margin also decreased from 6.2 per cent to 5.7 per cent.
Bechtle’s CEO Dr. Thomas Olemotz acknowledged the tough comparison with the strong previous year. He noted reduced demand from small and medium-sized enterprises (SMEs) throughout the quarter, particularly in June.
Additionally, public-sector clients in Germany remained cautious due to the prolonged budget debate. Despite these challenges, Olemotz expressed optimism about Bechtle’s growth prospects in the medium and long term.
Bechtle saw a 5.5 per cent increase in employees across its 120 European locations compared to the previous year. Acquisitions accounted for nearly 70 per cent of the 801 new hires, while organic growth contributed only 1.6 per cent. Excluding acquisitions, Bechtle experienced a slight decline compared to the previous quarter.
He said that given economic uncertainties, Bechtle is cautious about expanding its workforce. Instead, the company focuses on efficiency gains through digital transformation and artificial intelligence.
Bechtle aims for more substantial growth in the second half of 2024. The replacement cycle for traditional IT infrastructure, driven by the end of Windows 10 support, presents an opportunity.
Additionally, Bechtle’s expertise in cybersecurity positions it well to benefit from the European NIS2 Directive.
Digital transformation, multi-cloud expansion, and AI adoption remain key drivers. Olemotz emphasised that SMEs and public sector clients need to modernise their IT, even if current investments are postponed.
While the first half of 2024 fell short of expectations, Bechtle’s executive board remains confident about the company’s overall development.
Adjusted forecasts indicate that business volume, revenue, EBT, and EBT margin will remain at last year’s levels. Bechtle’s European M&A strategy continues to drive its optimistic outlook.
