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Exclusive Networks enjoys a strong start to the year

Distributor shares first quarter numbers that indicate the business remains in growth mode

Exclusive Networks has indicated it has started the year strongly with robust numbers for its first quarter, and has continued to tap into growth across all regions.

The distributor delivered IFRS revenue up 25% to €893m, and the firm produced run-rate gross sales above €1bn for the fourth consecutive quarter.

Gross sales improved by 27% to €925m across EMEA. The firm also kept retention rates up, with the vendor level at 126% and customer rates at 123%.

The experience of Q1 gave the board the confidence to make a commitment to its full-year outlook, which is expected to deliver gross sales above €5,150m and EBIT in the range of €172m to €178m.

Breaking down the regions, EMEA improved by 27% in gross sales, largely because it kept the positive momentum going from 2022, with a healthy backlog of business to tap into.

In the Americas, gross sales climbed by 50% year-on-year to hit €140m, with a number of large deals helping. The business has also been adding vendors into the mix, as well as ensuring it retains those it already works with in the region.

Finally, APAC was also experiencing growth, with gross sales improving by 10% to €115m. A couple of factors helped deliver that result, including a release of backlog and a comparison with a prior Q1 that was blighted by component shortages, which continue to ease.

Building on momentum

Jesper Trolle, CEO at Exclusive Networks, said the channel player had been able to build on the momentum it saw in 2022.

“We grew faster than the cyber security market once again, with growth in all regions,” he said. “This is an impressive result in a challenging macro environment which has impacted global IT budgets. Our strong performance reflects demand for our differentiated offering.

“Our track record is built on a proven model and clear mission to create a safer digital world,” said Trolle. “Exclusive Networks helps hundreds of thousands of organisations around the world access the most innovative security technology through our global platform, commercial expertise and technical know-how.”

Despite the macroeconomic headwinds, he said the business was operating in a growing market, with demand for cyber security staying strong, and it was optimistic about the prospects for the rest of the year.

“Exclusive Networks’ scale and ability to grow our addressable market – driven by a portfolio of best-in-class vendors – supports our confidence in meeting our 2023 financial guidance,” said Trolle.

Exclusive Networks has consistently rewarded investors that backed the distributor with positive quarterly results since it went public in September 2021.

The Q1 details come just a few months after the firm delivered a 38% increase in gross sales at €4.5bn, with net margin climbing by 29% to €411m for its fiscal year 2022.

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