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Westcon-Comstor FY revenue hits $2.89B
- 25 May, 2022 16:38
David Grant (Westcon-Comstor)
Westcon-Comstor’s global revenue reached US$2.89 billion during the 2022 financial year due to demand for its cyber security portfolio and networking solutions.
This revenue increase, a rise of 11.8 per cent compared to last year, was due to what the distributor claimed was “strong demand” for cyber security, networking and hybrid infrastructure offerings and remote access and cloud collaboration solutions.
Its gross profit rose by 9.6 per cent to US$319 million, which the distributor claimed was supported by strong unspecified results in Asia Pacific and Europe.
“Two years ago, our company demonstrated strong resilience in the face of the pandemic and the FY22 results we announced today illustrate our ability to not just sustain strong momentum but to go beyond and adapt and win in a rapidly changing market," said Westcon-Comstor CEO David Grant.
“Our focus on portfolio expansion with software and subscription-based solutions has helped us to not only record double-digit, organic revenue growth – despite material product supply constraints – but to drive unprecedented EBITDA [earnings before interest, tax, depreciation and amortisation] improvement as well.
“It’s a true testament to the hard work of our teams across all operations, who have performed exceptionally well this last year.”
That “unprecedented” EBITDA growth took the form of a 52 per cent increase on the financial year prior, reaching US$68.1 million, with gross margins averaging 11 per cent globally.
The distributor also said demand for its solutions continued to climb, as, in combination with supply constraints and chip shortages, its order backlog increased over 300 per cent, up to US$824 million.
“Multi-year investments we’ve made in business automation and digital tools are paying dividends as well,” Grant added.
“Our focus on solutions lifecycle management and building flexible payment solutions helped us to ensure that over 50 per cent of our gross revenue in FY22 was recurring; we see that percentage growing as we go into FY23.”
Part of Westcon-Comstor meeting customer demand can be seen through the addition of cloud-based IT infrastructure monitoring platform Logic Monitor to its Asia Pacific portfolio back in September last year.
That deal came as a result of evolving customer and partner demand for AIOps, observability and IT monitoring in a hybrid world.