Tech Data results show confidence
With its Q4 results, Tech Data closed the year off in a good position in Europe, even before adding the Avnet TS business. While currency headwinds resulted in flat reported revenue of $4.8bn, constant-currency sales were up 11% in the fourth quarter, across multiple categories including notebooks and mobility.
Total fourth quarter net sales were $7.4bn, a decrease of 1% compared to the prior-year quarter. On a constant currency basis, net sales increased 2%. European net sales were 64% of worldwide net sales, a number which is likely to fall after the Avnet TS business joins, making Tech Data a less Europe-dominated operation. European operating income was $66.7m, or 1.41% of net sales, compared to $75.1m, or 1.57% of net sales in the prior-year quarter.
For the full year total net sales were $26.2bn, a decrease of 1% compared to the prior year, but on a constant currency basis, net sales increased approximately 1%. Europe: Net sales were $15.8bn (60% of worldwide net sales), a decrease of 1% compared to the prior-year. On a constant currency basis, net sales increased approximately 2%.
Inside the numbers, Tech Data has been doing well selling Apple's products, now up to 20% of revenue on the back of introducing the consumer lines TV and Watch. Apple is now the company's biggest vendor, ahead of even the two halves of HP.
“Our strong Q4 results capped a historic year for Tech Data - a fiscal year of significant strategic progress and strong financial performance. In fiscal 17 we achieved all of our primary financial objectives: we gained share in key geographies, gained share in select product categories and with key vendors. We also improved nonGAAP operating income; and delivered our highest non-GAAP earnings per share in the history of our company,” said CEO Bob Dutkowsky. “Tech Data accomplished all of this despite a dynamic global geopolitical and economic environment, a significant vendor consolidation, and an evolving IT consumption model. On top of this, we recapitalized the company and entered into the largest, most transformative acquisition in our company’s history.”