Westcon-Comstor cracks record US$1.85B revenue

Technology distributor Westcon-Comstor has surpassed US$1.85 billion in revenue across its global operations during its first half of its 2024 financial year, representing a 14.9 per cent year-on-year increase.

For comparison, the company saw US$1.61 billion in the same period a year ago.

Over the six-month period to August 2023, the company also said it saw double digit revenue growth across its three operating regions – Asia Pacific (APAC), Europe and the Middle East and Africa (MEA).

Additionally, gross profit was up 33.4 per cent to US$203.7 million and gross margins increased to 11 per cent due largely to more stable foreign exchange rates compared to a year ago.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was also up, by 15.9 per cent to US$59.7 million.

Cyber security and networking made up the bulk of Westcon-Comstor’s revenue during the period at 90 per cent, with the distributor noting “excellent” growth in sales across its specialised portfolio for select markets.

The company’s shift to software and services-related revenues was also noted in its results, rising 17 per cent and account for 45 per cent of Westcon-Comstor’s total revenue.

David Grant, Westcon-Comstor CEO, said the company maintained its growth trajectory across all regions.

“These results illustrate our ongoing ability to deliver solid, double-digit growth against a challenging macroeconomic backdrop, driven by our digital leadership within technology distribution and unique data-driven approach,” he said.
 
“Looking ahead, 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.”

For the financial year ending February 2023, Westcon-Comstor Australia reported in August that net revenue increased by 38 per cent to A$625.7 million while reported net profit came in at A$4.6 million. Meanwhile, its New Zealand operations reported “double digit growth” back in May.

In ASEAN, Comstor expanded its partnership with Cisco last October to nurture a “future-ready” channel ecosystem in Malaysia.