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Exclusive Networks shares positive Q3 numbers

Distributor’s results add to a picture of channel resilience in the face of challenging macroeconomic conditions

Exclusive Networks has added to the recent trend of positive financial updates from the channel, reporting reasonable third-quarter results.

The distributor follows in the wake of Bytes, Softcat, Computacenter and fellow distributor Westcon-Comstor, each of which also shared numbers showing growth in their most recent quarters.

Exclusive Networks reported a 9% increase in gross sales, coming in at €1,228m, with year-to-date growth up by 16%. For the three months to 30 September, gross sales in EMEA improved by 14% to €973m.

In terms of the progress made in the year so far, EMEA gross sales were up by 17% to €2,795m, with the Americas region improving by 28%. Asia-Pacific showed some challenges, however, with a 7% year-on-year drop.

The majority of growth for the distributor was driven by business with existing vendors, but it also benefited from expanding relationships into fresh geographies. The firm also started to see some positive impact from its recent Ingecom acquisition.

In EMEA, the rise in gross sales to €973m was attributed to strong vendor relationships across the region. Spanish distributor Ingecom has already started to filter in some contribution.

Jesper Trolle, chief executive officer at Exclusive Networks, said the firm continued to benefit from having a strong position in the security market.

“In the third quarter, we made solid progress with gross sales growth of 9% reported – 13% at constant currency – in line with our expectations,” he said.

“We delivered double-digit growth in our largest region (EMEA), despite a challenging macroeconomic environment and low visibility, which has seen sales cycles lengthen and return to normalised levels since the end of 2022. We have a consistent solid pipeline with no project cancellation,” he added.

Trolle pointed to its Ingecom acquisition as an example of how it was prepared to use mergers and acquisitions as a method of expanding the business.

“After several years of organic growth, our strong balance sheet and excellent cash generation enabled us to make the acquisition of Ingecom to broaden and deepen our offering and support our long-term growth strategy,” he said.

“This strategic acquisition will enable us to expand our capabilities in innovative and disruptive technologies to complement and scale our offering of emerging and fast-growing cyber security solutions in our markets,” he added.

Exclusive Networks indicated to investors that it remained confident it would be hitting its full-year guidance.

“Our current momentum of double-digit growth for the year to date, coupled with a strategic acquisition, underpins our confidence in meeting our 2023 guidance,” said Trolle.

Despite challenging macroeconomic conditions, the results coming out of the channel have shown resilience, with growth continuing across reseller and distributor levels.

There are growing hopes across the channel that next year, particularly from the second quarter onwards, will see market conditions in the UK start to improve and make life easier.

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