Bits and Splits - stock.adobe.co
Exclusive Networks has continued to reward investors with a solid set of numbers for its half year.
The distributor delivered a 33.3% increase in revenue to €1,473.7m and a 49% climb in adjusted net income to €47.4m for the six months to 30 June 2022. The firm also reported first-half operating free cash flow before tax of €166m.
Drilling down into the numbers, it seems relationships with existing vendors were key, driving 72% of growth in current geographies. The rest of the growth came from expanding relationships, which the distributor has been keen to do over the first half. The firm also saw its retention rates with suppliers improve during the period.
Exclusive has not been alone in extending the geographical coverage it has with vendors, with distributors, too, looking to build on strong relationships that have already delivered proven results.
There were signs that its acquisitions of Ignition Technology and Networks Unlimited were also making positive contributions.
Performance in the Europe, Middle East and Africa (EMEA) region saw gross sales improve by 35% year-on-year to €1,528m, with growth in all countries. The UK was highlighted for its large enterprise deals.
“Not only did we deliver record half-year gross sales, but we also managed to grow our profitability faster than our top line and generate cash faster than in the past.” said Jesper Trolle, CEO of Exclusive Networks.
“Market dynamics during the first half of the year have remained favourable and we continue seeing strong market trends given the critical importance, for businesses and public entities of all sizes, of an adequate cyber security infrastructure,” he added.
Trolle noted that its position as a cyber security player meant it was able to continue to tap into a growing market.
“We recognise the increasingly challenging macroeconomic environment worldwide, however, our strong start to the year carrying on into the second half of the year, robust forward indicators and the growing strategic importance of cyber security, provide us with good visibility for the rest of 2022. Therefore, and in the absence of any unforeseen events, we are confident in our capacity to deliver on the upward revision to the outlook we release today for the full year,” he said.
The half-year numbers will not come as a surprise to those who follow the firm, as it has consistently shared decent numbers since it went public.
Last month, the firm revealed second-quarter results that featureed a 43% increase in gross sales, topping more than €1bn, with growth in major regions, including 43% in EMEA, 36% in Asia-Pacific and 46% in the Americas.