Econocom 2025 ambitions fuelled by FY24 results
Operating margin dragged down by One Econocom plan
Econocom revenue was on the up in FY24 despite negative operating profits, impacted by the company’s transition phase last financial year.
Revenue reached €2.74bn (£2.28bn), a 3.6 per cent increase from €2.64bn the year prior.
Products and solution (P&S) revenue led the way, standing at €1.2bn in FY24, up 0.5 per cent from FY23.
The unit was followed by technology management & financing (TMF) which notched a 7.7 per cent growth, up to €1.04bn.
Finally, the services unit grew by 3.1 per cent in revenue, climbing to €491m.
On the other hand, operating margin dipped to €110.4m, a 3.6 per cent decline (FY23: €114.5m), while operating profit dropped by 15 per cent, plummeting at €88.1m (FY23: €103.6m)
Operating margin was seriously affected by the introduction One Econocom, the reseller’s 2024-2028 plan to boost European leadership and accelerate its transformation into a digital innovation facilitator, turning 2024 into a transition year for the company.
“2024 was a milestone in the history of Econocom, with the completion of the first year of the ‘One Econocom’ plan and Angel Benguigui’s appointment as CEO,” said Jean-Louis Bouchard, chairman and founder of Econocom.
Benguigui was promoted in July 2024 to strengthen the group’s European leadership and accelerate its growth in local markets.
The CEO added: “The year ended with strong results because of the major transition we have begun.
“Ever-advancing technologies lead us to make investments that are paramount for the transformation of our business lines and to maintain our competitive edge going forward.”
Focus on the positive
On the plus side, One Econocom added 60 people to the company’s headcount, as the scheme intends to strengthen the company’s sales force.
The group also expanded its presence in Germany this January with its 80 per cent stake acquisition of German IT refurbishment bb-net.
This new acquisition reinforced Econocom’s position in the circular economy and brought over €17m in revenue as well as around 50 employees.
Looking at the new year, the company expects its 2025 growth to be above 2024’s.