Westcon-Comstor is reporting a record 14.9 per cent year-on-year increase in first-half revenue to $1.85 billion.
The company saw double-digit revenue growth for the six months to 31 August 2023 (H1 FY24) across each of its three operating regions: Europe, Asia Pacific and the Middle East and Africa.
Gross profit jumped 33.4 per cent to $203.7m, with gross margins increasing to 11 per cent due mainly to more stable foreign exchange rates than H1 FY23. The company’s EBITDA also increased by 15.9 per cent to $59.7.
Cybersecurity and networking accounted for 90 per cent of Westcon-Comstor’s revenue during the half-year period, with excellent growth in sales across the specialised portfolio for the selected markets in which the company operates.
Westcon-Comstor’s H1 FY24 results highlight its ongoing shift to software and services-based revenues, which saw a 17 per cent year-on-year increase and now account for 45 per cent of the company’s total revenue.
The distributor has seen a 65 per cent increase in borrowing facilities since FY19, with a utilisation range of $800 million to $1 billion, leaving it between $400 million and $600 million available to support future investment and growth.
Westcon-Comstor CEO David Grant said: “We’re excited to report an excellent financial performance for H1 FY24 as we maintain our growth trajectory across all regions and accelerate our transformation into the world’s leading data-driven technology provider and specialist distributor of cybersecurity and networking solutions.”
He said: “Our shift to software and services means we are ideally placed to thrive in the subscription-based, everything-as-a-service (XaaS) platform economy of the future.
“By continuing to innovate and add value at a strategic level, we will enable our channel partners to unlock new opportunities as together we embark on the next wave of our digital transformation.”
Westcon recently announced the launch of its new marketplace, which CTO Rakesh Parbhoo defined as the “central place for partners to interact with us”.
