Westcon-Comstor, a global technology provider and specialist distributor, posted a 14.9% year-on-year increase in first-half revenue to a company record US $1.85 billion. Westcon-Comstor reported double-digit revenue growth for the six months to 31 August 2023 across each of its three operating regions: Europe, Asia-Pacific (APAC) and the Middle East and Africa (MEA).
Gross profit saw a 33.4% year-on-year jump to US $203.7 million with gross margins increasing to 11% due largely to more stable foreign exchange rates compared to H1 FY23. EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 15.9% to US $59.7 million.
Cybersecurity and networking accounted for 90% of Westcon-Comstor’s revenue during the half-year period, with strong growth in sales across the specialized portfolio for the selected markets in which the company operates.
Westcon-Comstor’s H1 FY24 results also highlight its ongoing shift to software and services-based revenues, which saw a 17% year-on-year increase and now account for 45% of the company’s total revenue.
“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,” said CEO David Grant. “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.”
The data represent good news for two-tiered distribution as the market continues its evolution toward software and services.