Westcon-Comstor continues growth trajectory with double-digit profit
The double-digit increases in gross profit and adjusted EBITDA was pushed by a data-driven strategy and successful shift towards recurring revenue models
Westcon-Comstor unveiled a double-digit increases in gross profit and adjusted EBITDA, propelled by a data-driven strategy and a shift toward recurring revenue streams.
The financial results provided encouraging signs of sustained growth and strategic focus for the Datatec-owned distie. Total revenue increased by 8 per cent to $3.69bn, driven by a strong performance in software. Strategic vendor gross sales increased by 10 per cent, with a CAGR of 10 per cent over the past five years.
Gross profit rose 23 per cent to $403m, with double-digit growth across all regions.
The strategic focus on recurring revenues was an important success factor, with revenues increasing by 24 per cent to $1.63bn, up from 38 per cent to 44 per cent of total revenue.
Adjusted EBITDA, a measure of profitability, rose 26 per cent to $120.2m and, along with that, an additional 0.5 percentage point improvement in margin to 3.3 per cent.
According to Westcon, the numbers reflect the success of the strategic shift initiated in fiscal 2018, which has provided a revenue CAGR of 8 per cent over five years.
"It has been another year of excellent growth and operational success for Westcon-Comstor," said David Grant, CEO.
"These results demonstrate our resilience and efficiency when operating in dynamic market conditions, whilst continuing to advance our vision of being the leading data-driven technology provider and specialist distributor of cybersecurity and networking solutions and services globally."
Westcon-Comstor stated its data-driven approach has been a key enabler of its success.
Cybersecurity in networking were standout performers, now accounting for 89 per cent of the business.
Innovative initiatives, such as the 3D Lab, which tests multi-vendor cybersecurity solutions against specific use cases in a virtual demo environment, have generated more than $25m in new business for partners.
Westcon-Comstor's recent strategic moves include launching its Amazon Web Services Marketplace programme and acquiring Rebura, further strengthening its cloud capabilities and channel-focused services.
Looking ahead, Westcon-Comstor said it remains optimistic about the outlook for the coming year and said it expected continued robust performance and growth in fiscal year 2025.
Its focus on cybersecurity, networking, and an expanding cloud strategy is expected to drive momentum, with its data-driven approach, commitment to partner success, and efforts in environmental and social responsibility positioning it as a leader in delivering exceptional value and service excellence.