Bechtle slides down slippery slope with low Q3 FY24 results

Bechtle’s EBT are anticipated to be below market expectations after dip in Q1 and Q2 results

Reluctance to invest from SMEs in France and Germany lead Bechtle’s earnings before taxes (EBT) to be under the reseller’s market expectations in the third quarter, according to preliminary figures.

Business volume decreased by around one per cent year-on-year, sitting at €1.89m (£1.57m).

EBT dropped back to €78m after reaching €93.9m in the previous year.

The EBT margin is expected to be 5.2 per cent.

This announcement comes after the company’s revenues plunged in its first and second quarters.

Due to "adverse macroeconomic conditions", the German reseller saw its revenues dip by 2.3 per cent to €1.4bn in Q2 FY24.

These results come despite satisfying FY23 results; last year, the company saw its revenue increase by 6.5 per cent to €6.4bn, business volume grew seven per cent to €7.8bn, and EBT rose 6.8 per cent to €374.5m.

In Q3 2023, Bechtle also secured a large-volume software project, which had a positive impact on revenue and earnings.

Such a feat hasn’t been reproduced this year.

Idol with iron feet

As of today, the executive board said it no longer expects to achieve the forecast announced on 18 July 2024 and cannot forecast with accuracy any improvement in business development in the fourth quarter of 2024.

But this is not a doom scenario for the company, as the German reseller is far from being an idol with feet of clay.

Revenue climbed approximately two per cent to €1.51m in Q3 FY24.

Despite France and Germany’s reluctance to invest, the neighbours aren’t the only countries on the map and on Bechtle’s radar.

This year has seen a great number of acquisitions from Bechtle all around Europe; in Italy (MMN), Spain (iDoo Tech), and in the UK (DriveWorks, Qolcom).

Bechtle’s pan-European approach could be its salvation, or so will be told by Q4 2024.

Bechtle will publish its statement for the third quarter in November 2024.