Systemax turns up B2B focus

Fourth quarter results from reseller Systemax reveal that the B2B segment is growing strongly and will get more attention

Systemax is looking to increase its focus on business-to-business channels as it looks to concentrate on the growth segment of its business opertaion as losses increased year-on-year.

The reseller saw its consumer channel sales decrease in Q4 by 22.7% to $315.2m but there was 6.1% growth in the business-to-business sales which helped stem the overall consolidated sales number to just a 6.5% year-on-year decline.

A net income loss of $19.8m was trimmed back from a $27.1m in the previous year and gross profits improved to $129.3m from $120.4m in 2012.

The firm runs the Misco, WStore amd Inmac brands in EMEA and it reported that in the fourth quarter conditions in Europe started to improve and it saw a slight gross profit increase.

Richard Leeds, chairman and CEO of Systemax, said that its industrial products group had also had a strong performance in Q4 and it was starting to see the benefits of a long term strategy to focus around growth areas, "as well as a strategic decision to focus more of our efforts on our business-to-business channels".

"Our technology products business had a mixed performance, with our business-to-business operations in both Europe and North America showing improved revenue trends on a sequential quarter basis, while our consumer business delivered disappointing results as it continues to face a very competitive environment.  In Europe Technology, we delivered a modest increase in our fourth quarter gross profit and continued to ramp up our shared service center," he said.

"Going forward, the Industrial Products group is well positioned for future growth, the European business transition is progressing and we are poised to benefit from a more efficient operating model," he added "We still have more to do, and we are focused on expanding our business-to-business operations, while operating a consumer business that is profitable."

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