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EMEA shines in Exclusive Networks Q1

EMEA region delivers decent growth as distributor continues its habit of delivering solid results to investors

Exclusive Networks has delivered a decent set of first-quarter numbers on the back of a strong EMEA performance and growth in software and cloud. 

Shared details of its first quarter, the distributor reported a 6% increase in gross sales to €1,255m and announced its cloud and software business had expanded to reach 50% of revenues.

On top of that, the channel player benefited from its largest region, EMEA, bringing in decent sales. Paul Eccleston, senior vice-president for EMEA at Exclusive Networks, talked up the performance of the region and its double-digit growth in the quarter.

“Q124 saw us continue our growth momentum, with gross sales breaking the €1bn barrier, a growth of 10% over the same period last year, with our EMEA business accounting for 80% of the group’s Q1 total. Also pleasing was the mix of business as we continue to grow our software, cloud and services portfolio,” he said.

The performance of the EMEA business underlined the distributor’s resilience against a continued backdrop of macroeconomic strain.

The EMEA performance was markedly up on the Americas and APAC, where it struggled to deliver year-on-year increases in gross sales.

In the Americas, gross sales were €141m, up 1% reported and up 2% at constant currency, and APAC experienced a 9% decrease, which was seen as a sign that stabilisation is returning to the region.

Jesper Trolle, CEO of Exclusive Networks, said the business had shown it was able to deliver growth despite those wider economic challenges.

“Exclusive Networks has delivered a solid start to the year … mostly driven by continued momentum in our EMEA business. This is a robust outcome in light of the macroeconomic backdrop and the exceptional impact of the supply chain in the first quarter of 2023,” he said.

The firm has also continued with its mergers and acquisition activity in the first quarter, picking up NextGen to bolster its position in Asia. Trolle indicated that its strategy of buying to expand the business would continue.

“Acquisitions remain an important growth lever for Exclusive Networks, having completed more than 20 deals in the last decade. This quarter, we announced the strategic acquisition of NextGen that will provide us with critical mass in Australia and New Zealand, and strengthen our value proposition thanks to their wide array of services,” he said.

“We remain committed to exploring ways of accelerating our growth and expanding our market potential through strategic acquisitions that broaden our portfolio and geographic footprint,” he added.

Trolle indicated there were continued drivers that would benefit those in the market specialising in cyber security. “The evolving threat environment, influenced by geopolitical tensions, international conflicts, the adoption of generative AI, and regulatory demands for increased disclosure of cyber attacks, continues to position cyber security as a top priority for business leaders worldwide,” he said.

As a result, Trolle claimed there were reasons to be optimistic about the prospects for the rest of the year.

“As previously indicated, growth is expected to accelerate in the second half due to ongoing demand for cyber security, and our scalable model supports our confidence in meeting our guidance for 2024,” he said.

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